IMF reacts to Donald Trump's tariff war

Kristalina Georgieva said "it is important to avoid steps that could further harm the world economy.”

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

she added.  

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,

Georgieva said.

She said the IMF would provide an assessment of the announced tariffs when the IMF and World Bank release an update on the world economic outlook at a meeting of IMF and World Bank members and shareholders in Washington on 21-26 April.

The head of the global lender on Monday told Reuters that Trump's push for wide-ranging tariffs was creating great uncertainty and denting confidence, but it was not likely to trigger a near-term recession.

At the time, Georgieva said the IMF would likely lower the economic outlook slightly, adding "we don't see recession on the horizon."

The U.S. tariffs announced on Wednesday went far beyond the levels that had been predicted or expected by trade experts.

It will be interesting to see if the higher than expected tariffs make the IMF more pessimistic.

Cover image (for illustration purposes only): Getty Images