Effect of US tariffs on world economy unclear, IMF head says
Amid many unknowns, it is too early to assess their impact, MD Kristalina Georgieva says
11 February 2025 - 16:24
byFederico Maccioni and Yousef Saba
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IMF MD Kristalina Georgieva. Picture: REUTERS/CARLA CARNIEL
Dubai — US tariffs are an “evolving story” and it is too early to assess their impact on the world economy, IMF MD Kristalina Georgieva said on Tuesday.
“It is an evolving story … What we have are elements of trade policy that we expected would come, that was announced in the election campaign, but there are many unknowns”, she told the World Government Summit in Dubai.
“So when I think of the impact on the world economy, my answer to you would be today, it’s too early to say.”
Georgieva said the world economy appeared remarkably resilient, despite a series of unprecedented shocks.
The outlook for inflation was hard to predict, she suggested.
“Even on that, we just need to see how things evolve. Because if we are in the situation in which, in some parts of the world, there is a slowdown that may push central banks to bring interest rates down, that may actually not be inflationary.”
US President Donald Trump substantially raised tariffs on steel and aluminium imports on Monday to a flat 25%, a move he hopes will aid the struggling industries in the US but which also risks sparking a multifront trade war.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Effect of US tariffs on world economy unclear, IMF head says
Amid many unknowns, it is too early to assess their impact, MD Kristalina Georgieva says
Dubai — US tariffs are an “evolving story” and it is too early to assess their impact on the world economy, IMF MD Kristalina Georgieva said on Tuesday.
“It is an evolving story … What we have are elements of trade policy that we expected would come, that was announced in the election campaign, but there are many unknowns”, she told the World Government Summit in Dubai.
“So when I think of the impact on the world economy, my answer to you would be today, it’s too early to say.”
Georgieva said the world economy appeared remarkably resilient, despite a series of unprecedented shocks.
The outlook for inflation was hard to predict, she suggested.
“Even on that, we just need to see how things evolve. Because if we are in the situation in which, in some parts of the world, there is a slowdown that may push central banks to bring interest rates down, that may actually not be inflationary.”
US President Donald Trump substantially raised tariffs on steel and aluminium imports on Monday to a flat 25%, a move he hopes will aid the struggling industries in the US but which also risks sparking a multifront trade war.
Reuters
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