IMF Warns Trump Tariffs Threaten Global Growth

The Trump administration's escalating and unpredictable tariff policies have increased global economic uncertainty, with the ongoing U.S.-China trade conflict causing significant market volatility and concerns about financial instability. Former Commerce Secretary Wilbur Ross has defended the tariffs as a means to revive U.S. manufacturing, but critics warn the conflict could escalate into a 'capital war' and jeopardize America's financial leadership. The International Monetary Fund (IMF) projects that these tariffs will slow global economic growth and raise inflation, leading to downgraded growth forecasts, though it does not predict a global recession. The IMF and other financial leaders caution that heightened trade barriers raise costs, disrupt supply chains, and harm productivity, particularly in smaller and emerging economies. Policy uncertainty has contributed to wild swings on Wall Street and a weakening U.S. dollar. The IMF urges countries to lower tariffs and maintain strong fiscal and monetary policies to restore global stability.