American tariffs that increase the global economy and increase inflation this year, according to the projections that will be launched next week by the International Monetary Fund.
The IMF managing director, Kristalina Georgieva, said Thursday that strong increases in Trump administration tasks have caused global uncertainty to Spike. Import taxes will slow down global growth, but will not cause a world recession, he added. The details of the IMF perspective will be broadcast on Tuesday.
The resilience of the world economy is being proven “by the restart of the global commercial system” that threatens to cause turbulence in financial markets, Georgieva said.
That turbulence has been Playing in financial markets For weeks, especially on Wall Street, which has experienced wild swings day by day and, often, even time by time.
The Chief of the IMF also echoed some concerns of the Trump administration. He asked countries to reduce their tariffs and decrease other barriers to trade, a process that, according to her, had stagnated in the last decade after making constant progress for many years after World War II.
“Commercial distortions (rates and non -adhesive barriers) have fed the negative perceptions of a multilateral system that looks not to have managed to deliver a level game field,” he said. “This feeling of injustice in some places feeds the narrative: we play according to the rules while others play the system without penalty.”
Georgieva added that tariffs cause uncertainty, which can be expensive. Due to the complexity of supply chains, the cost of a single article can be affected by tariffs in dozens of countries, he said.
The increase in commercial barriers also tends to immediately affect growth, and although it can lead to greater national production, which takes time to be implemented, he added.
In its most recent projections issued in JanuaryThe IMF predicted that the world economy will grow nominally faster and that inflation decreases, although it warned that the perspectives were cloudy by the policies of President Donald Trump, including tax cuts and increased tariffs on foreign imports.
The Washington -based loan agency said at that time that it expected the world economy to grow 3.3% this year and next, compared to 3.2% in 2024.
The global inflation, which increased after the Covid-19 pandemic interrupted global supply chains and caused shorter shortages and prices, fell 5.7% in 2024 to 4.2% this year and 3.5% in 2026.
However, in a blog post that accompanied those projections, the main economist of the fund, Pierre-Olivier Gourinchas, wrote that the policies Trump has promised will introduce “it is likely that he pushes the highest inflation in the short term.”
These January forecasts are expected to change, possibly significantly, such as Trump’s commercial war intensified in recent months, Particularly with the largest commercial partner of the United States, China.
Trump has leisurely or retired In many of its tariff threats, which lead to greater volatility in the stock market, but has been in a Tit-For-OT Rate battle with China and has not shown signs of support. Every time Trump has raised tariffs on China, Beijing has retaliates with tariffs on US imports.
The IMF is a 191 -nations loan organization that works to promote economic growth and financial stability and to reduce global poverty.
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AP Matt Ott business writer contributed.
