The International Monetary Fund (IMF) says that US President Donald Trump’s tariffs have increased global financial stability risks.This warning was part of the IMF’s Global Financial Stability Report released on Tuesday, as world financial leaders meet in Washington to discuss the uncertainty caused by the tariff policies.
The IMF pointed out that Trump’s tariff rate surged past levels reached during the Great Depression, which saw tariffs rise as high as 60 percent during one of the worst economic periods in modern history, a downturn that led to more than 12 million Americans losing their jobs.
Global ripple effect
The global ripple effect took the spotlight in the IMF’s report. “Global financial stability risks have increased significantly, driven by tighter global financial conditions and heightened economic uncertainty,” the IMF said.
The fund projects a slump in US economic growth at 1.8 percent for the year — a downturn from its previous forecast of 2.7 percent and down a full percentage point from this time last year. Advertisement
China is also forecast to grow more slowly because of imposed US tariffs, looming additional tariffs on goods including pharmaceuticals, and Beijing’s reciprocal tariffs on US goods. The IMF now expects it will expand 4 percent in 2025, which is more than a half-point decrease from previous forecasts.
In Europe, the IMF forecasts that the 20-country eurozone will see 0.8 percent growth this year and 1.2 percent in 2026. The new report is …