IMF Warns Tariffs May Stunt Global Economic Growth

London, England — The International Monetary Fund warned on April 22, 2025, that President Donald Trump’s unpredictable tariff policies could severely impact economies around the world, particularly the United States. The IMF predicted that global economic growth would slow to 2.8% in 2025, down from 3.3% the previous year.

The U.S. economy is expected to suffer even more, with growth projected at only 1.8% this year, a decline from 2.8% in 2024. These forecasts are more pessimistic than those published in January, which did not take into account the sharp rise in tariffs.

“The swift escalation of trade tensions and high levels of policy uncertainty are expected to significantly impact global economic activity,” said Pierre-Olivier Gourinchas, the IMF’s chief economist. He noted that Trump’s new tariffs have been a major factor in the lowered growth outlook, diminishing demand even before the tariffs were announced.

Gourinchas further explained that North America, like all other regions, could see negative long-term impacts from sustained tariffs. “The long-term consequences will be detrimental for all regions,” he stated.

As inflation concerns grow, the IMF revised its U.S. inflation forecast upward to 3%, up from an earlier estimate of 2%. This rise is attributed to Trump’s tariffs, which are expected to push prices higher.

The IMF emphasized that the latest World Economic Outlook was created under “exceptional circumstances” following Trump’s announcement of new tariffs on April 2, which abruptly changed their economic projections.

In an interview about trade, Christine Lagarde, president of the European Central Bank, reiterated the importance of free trade, stating that higher tariffs negatively affect growth rates. While she does not foresee a recession among countries using the euro, she acknowledged the detrimental effects of trade restrictions.