IMF Warns Global Growth Decline Amid Trade Uncertainties

The International Monetary Fund (IMF) has warned that rising U.S. tariffs and subsequent retaliatory measures from other countries are creating significant uncertainty and negatively affecting the global economy. The IMF has revised its global growth forecast downward, citing reduced trade volumes and heightened risks of recession, particularly for the United States. IMF officials emphasize that increased tariffs disrupt supply chains, raise costs for both importers and consumers, and complicate business planning and investment decisions worldwide. Although immediate recession is not currently anticipated, the IMF stresses that ongoing trade tensions could undermine global economic stability and slow recovery efforts, especially in developing economies. The overall message is that protectionist policies, while potentially boosting tariff revenue, are likely to reduce productivity and increase prices internationally.