IMF warns US tariffs could harm global growth

WASHINGTON: The International Monetary Fund has warned that new US tariffs could weaken global economic growth and has urged Washington to ease trade tensions to prevent further uncertainty.

"We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth," IMF chief Kristalina Georgieva said, urging the US and its partners to work constructively to reduce tensions.

The statement was the first from the IMF chief after President Donald Trump’s latest worldwide tariff salvo deepened a trade war that many fear could trigger a global recession and drive up inflation.

The tariffs "clearly represent a significant risk to the global outlook at a time of sluggish growth," the head of the International Monetary Fund said in a statement.

"It is important to avoid steps that could further harm the world economy," Georgieva added.

"We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty."

The Washington-based institution in January said global growth was expected to hit 3.3 per cent this year, below the average global growth rate in the first two decades of the 21st century of 3.7 per cent.

The IMF will publish its new outlook later this month in time for the Spring Meetings in Washington, where the unprecedented US trade tariff onslaught will be high on the agenda.