IMF Chief calls Donald Trump’s reciprocal tariffs a ‘significant risk,’ urges US to cooperate with trading partners

The International Monetary Fund (IMF) Chief Kristalina Georgieva raised concerns over the reciprocal tariffs announced by the United States on April 2. She mentioned that the latest tariffs "clearly represent a significant risk to the global outlook" and urged the United States to work with its trading partners.

IMF, a body that aims to promote monetary cooperation and sustainable growth among its 91 member countries, gave the first reaction after US President Donald Trump announced reciprocal tariffs on Wednesday. The proposed tariffs raise fears about trade war and inflation.

The tariffs "clearly represent a significant risk to the global outlook at a time of sluggish growth," 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.

IMF outlook on global growth

In January, IMF, the Washington-based global organisation, estimated that global growth may hit 3.3 per cent this year, which is lower than the average global growth rate of 3.7 per cent since the last two deceased of the 21st century.

Later this month, the IMF will publish the ‘World Economic Outlook,' a report that will discuss the impact of the latest tariffs imposed by the United States. The report will be published during the scheduled Spring Meetings in Washington, Georgieva mentioned in her statement.

Donald Trump's reciprocal tariffs

Donald Trump announced a comprehensive tariff policy on trading partners, imposing at least a 10% duty on nearly all goods entering the United States. The move was aimed to correct trade imbalances and boost American industries.

Trump proposed a 10% tariff on all imports from all countries, except those complying with the US-Mexico-Canada Agreement (USMCA). Goods from non-compliant USMCA nations will continue to face a 25% tariff. Nearly 60 countries with significant trade surpluses against the US were subjected to reciprocal tariffs.