THE International Monetary Fund (IMF) has expressed concerns that United States President Donald Trump’s tariff measures pose a significant risk to the global economy.
The IMF Managing Director, Kristalina Georgieva, raised the concern in a statement issued late on Thursday, April 3.
She said, “We are still assessing the macroeconomic implications of the announced tariff measures, but they represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy.
“We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.”
Georgieva indicated that the IMF, a member of the Bretton Woods financial institution, would publish its assessment of Trump’s tariff disruption to the global economy later this month.
“We will share the results of our assessment in the World Economic Outlook, which will be published at the time of the IMF/World Bank Spring Meetings later this month,” she added.
The U.S. president intensified a global trade war Wednesday, April 2, slapping sweeping tariffs on imports from allies and foes alike, sending markets into a tailspin and challenging long-established free trade norms.
He imposed a 14 per cent tariff on exports from Nigeria to the U.S., arguing that Nigeria imposes a 27 per cent tariff on U.S. exports, which he said has long harmed American businesses and consumers, The ICIR reported.
Trump also introduced a broader trade policy that includes a standard 10 per cent tariff on all U.S. imports, along a 14 per cent tariff on Nigerian exports.
The new tariffs, effective immediately, apply to over 50 countries, including major trade partners such as China, the European Union (EU), India, and Japan, along with developing economies across Asia, Africa, and Latin America.
China and the EU have vowed retaliation against the levies, with Australia’s leader saying the new tariffs were “not the act of a friend” and would hurt the close allies’ relationship.
Shortly after Trump’s announcement, separate tariffs of 25 per cent on all foreign-made cars and light trucks went into effect, with auto parts also scheduled to be affected by May 3.
He tagged his stinging tariffs on major trade partners, China and the EU, on what he called “Liberation Day.”
This is one of the most important days, in my opinion, in American history. It’s our declaration of economic independence, Trump had said.
Trump believes the tariffs would restore the U.S. economy to a lost “Golden Age,” he had maintained, stressing that for decades, the U.S. has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.
Trump, whose mantra is to ‘Make America wealthy again, portrays his tariff measures as part of a broader effort to safeguard American industries and ensure that foreign nations adhere to “fair” trade rules.