IMF chief says US tariffs a 'significant risk' to global economy

WASHINGTON, DC - APRIL 02: Charts that show the “reciprocal tariffs” the U.S. is charging other countries are on display at the James Brady Press Briefing Room of the White House on April 2, 2025 in Washington, DC. Hosting a "Make America Wealthy Again" trade announcement event in the Rose Garden touting as a “Liberation Day” event, President Donald Trump announced sweeping new tariffs targeting goods imported to the U.S. on countries including China, Japan and India. Alex Wong/Getty Images/AFP

The statement was the first from the IMF chief after President Donald Trump's latest worldwide tariff salvo deepened a trade war that many fear will invite global recession and fuel inflation.

The tariffs "clearly represent a significant risk to the global outlook at a time of sluggish growth," the head of the International Monetary Fund said in a statement.

"It is important to avoid steps that could further harm the world economy," Georgieva added.

"We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty."

The Washington-based institution in January said global growth was expected to hit 3.3 percent this year, which is below the average global growth rate in the first two decades of the 21st century of 3.7 percent.

The IMF will publish its new outlook later this month in time for the Spring Meetings in Washington in which the unprecedented US trade tariff onslaught will be on the top of the agenda.