IMF Chief Sounds Alarm on U.S. Tariffs; Urges To Resolve Trade Tensions

COLOMBO (News 1st); IMF Managing Director Kristalina Georgieva expressed concern over the announcement of U.S. tariffs, highlighting the potential risks to the global economy.

Georgieva emphasized that the IMF is currently assessing the macroeconomic implications of these measures, which come at a time of sluggish growth worldwide.

"The announced tariff measures clearly represent a significant risk to the global outlook," Georgieva stated. "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."

Georgieva also mentioned that the IMF will share the results of its assessment in the upcoming World Economic Outlook, set to be published during the IMF/World Bank Spring Meetings later this month.

US President Donald Trump unveiled sweeping tariffs on some of the country’s largest trading partners.

Trump said he would impose a 10% universal tariff on all imported foreign goods in addition to “reciprocal tariffs” ranging from 20% to more than 40% on dozens of countries.

The 10% universal tariff will go into effect on 5th April while the reciprocal tariffs will begin on 9th April.

Trump was fulfilling a key campaign promise by raising U.S. taxes on foreign goods to narrow the gap with the tariffs the White House says other countries unfairly impose on U.S. products.

On 2nd April 2025, US President Donald Trump addressed a group of automotive industry professionals in the Rose Garden at the White House, explaining the latest executive decision.

President Trump stated that other countries gain significant advantages in trade deals with the United States.

To immediately address this imbalance, he announced the implementation of a new policy of reciprocal tariffs to ensure that the US economy benefits more from these trade relationships.