Trump's Tariffs Likely to Curb Economic Growth, Warns IMF

The International Monetary Fund (IMF) has issued a stark warning regarding the economic repercussions of President Donald Trump's sweeping tariffs. This analysis predicts a deceleration of U.S. economic growth to 1.8% in 2025, a significant drop from previous forecasts and considerably lower than the 2.8% growth recorded in 2024. Furthermore, global growth is projected to decline to 2.8% in 2025 and 3% in 2026, marking a downgrade from earlier predictions. The IMF attributes this downturn to the imposition of high tariffs on various nations, which has introduced a level of unpredictability into the economic landscape that hinders investment decisions. Elizabeth Mahon, a local business owner in Washington, expressed concern over how the tariffs have already impacted prices, highlighting that consumers are feeling the burden of these policies. Leaders from major corporations are calling for more clarity and stability in trade policies, as uncertainty is posing a risk to business planning and investment spending. The IMF has cautioned that while Trump believes he is steering the U.S. towards a 'golden age' of manufacturing, the immediate consequences suggest otherwise. Trump's online statements call for a return to 'reciprocity' in trade; however, countries are urged to navigate this 'transition' cautiously. The path forward, as per the IMF, requires a cooperative approach to stabilize global trade, addressing both economic stability and structural imbalances. The narrative thus paints a picture of a tumultuous economic environment, where the repercussions of tariffs could reverberate for years to come.