U.S. Tariffs Will Weaken Global Economy and Trigger Inflation but Not a Global Recession, IMF Says

Surging U.S. tariffs will weaken the global economy and push up inflation this year, according to projections to be released next week by the International Monetary Fund

by Christopher Rugaber
ABC News

Surging U.S. tariffs will weaken the global economy and push up inflation this year, according to projections to be released next week by the International Monetary Fund.

The IMF’s Managing Director, Kristalina Georgieva, said Thursday that the Trump administration’s sharp increases in duties have caused global uncertainty to spike. The import taxes will slow global growth, but not cause a worldwide recession, she added. The details of the IMF’s outlook will be issued Tuesday.

The world economy’s resilience is being tested “by the reboot of the global trading system” that threatens to cause turbulence in financial markets, Georgieva said.

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