Donald Trump’s stop-start tariff rollout has “significantly” increased global financial stability risks, the International Monetary Fund said in a new report published yesterday.
In my view, however, the IMF has stated the obvious; it’s like stating something that everyone already knows, like saying “The sky is blue” when it’s clear and sunny outside.
The IMF report, in other words, doesn’t add to the widespread information in relation to the world economy ever since Trump embarked on a tariff war against the US foes and friends alike.
Slashing global growth was highly expected from the lender of last resort as its likelihood can never be overemphasized. About a week ago, the IMF had said that while trade uncertainty is “literally off the charts” but there will not be a global recession.
But I strongly believe that the world is fast moving towards global recession resulting from the US tariffs, and it (economic meltdown) will be worse than what the world witnessed during the 2008 financial crisis.
Saleem Reza (Karachi)
Copyright Business Recorder, 2025
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