JNS: IMF Managing Director Kristalina Georgieva expressed concern on Thursday about the potential impact of newly imposed US tariffs on the global economic outlook, calling them a significant risk, especially amid already sluggish growth worldwide.
In her statement, Georgieva emphasized the importance of avoiding actions that could further harm the global economy. “We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth,” she said. “It is important to avoid steps that could further harm the world economy.”
The IMF chief urged the United States and its trading partners to engage constructively in resolving trade tensions and reducing uncertainty. The IMF is expected to provide more detailed analysis in its upcoming World Economic Outlook, which will be published during the IMF/World Bank Spring Meetings later this month.
On Wednesday, US President Donald Trump announced new tariffs of at least 10% on goods from many countries, with even higher tariffs for certain nations, including some of America’s closest trading partners. This move has raised fears of escalating trade tensions and a potential global trade war.
Speaking from the Rose Garden at the White House, Trump outlined his tariff plans, noting that they would not be fully reciprocal. “I could have done that, I guess. But it would have been tough for a lot of countries,” he remarked. His speech, attended by US steel and auto industry representatives and construction workers, was hailed by the president as a “Liberation Day” for America.
The tariffs target countries such as China, India, Vietnam, Taiwan, Japan, South Korea, Thailand, Switzerland, Indonesia, Malaysia, Cambodia, and the European Union. Specifically, Trump announced a 34% reciprocal tariff on China, 26% on India, and 20% on the European Union.
The move is part of a broader trade strategy aimed at addressing what the administration perceives as unfair trade practices. Trump highlighted that the United States imposes lower tariffs on certain imports compared to other nations. For instance, the US charges a 2.5% tariff on passenger vehicle imports, while the European Union charges 10% and India imposes a 70% tariff on the same product.
The president also cited discrepancies in tariffs on other goods, including networking switches and routers, ethanol, and rice in the husk. For example, while the US imposes a 2.7% tariff on rice, countries like India and Malaysia charge significantly higher rates.
As the trade landscape becomes more uncertain, the global community watches closely for any further developments and the potential long-term effects on international trade relations.
