IMF says US tariffs a ‘significant risk’ to global economy

WASHINGTON: IMF chief Kristalina Georgieva on Thursday said new US tariffs “clearly represent a significant risk to the global outlook” and urged Washington to work with its trade partners.

The statement was the first from the IMF chief after President Donald Trump’s latest worldwide tariff salvo deepened a trade war that many fear will invite global recession and fuel inflation. The tariffs “clearly represent a significant risk to the global outlook at a time of sluggish growth,” the head of the International Monetary Fund said in a statement.

“It is important to avoid steps that could further harm the world economy,” Georgieva added.

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

The Washington-based institution in January said global growth was expected to hit 3.3 percent this year, which is below the average global growth rate in the first two decades of the 21st century of 3.7 percent.

The IMF will publish its new outlook later this month in time for the Spring Meetings in Washington in which the unprecedented US trade tariff onslaught will be on the top of the agenda.