IMF warns of 'major negative shock' from Trump's tariffs [View all]

Source: The Guardian

Tue 22 Apr 2025 09.00 EDT


Donald Trump’s tariffs have unleashed a “major negative shock” into the world economy, the International Monetary Fund has said, as it cut its forecasts for US, UK and global growth.

In a stark assessment of the impact of the US president’s policies, as global finance ministers prepare to meet in Washington, the IMF said: “We expect that the sharp increase on April 2 in both tariffs and uncertainty will lead to a significant slowdown in global growth in the near term.”

Publishing the latest edition of its World Economic Outlook, the Washington-based lender cut its forecast for global GDP growth to 2.8% for this year – 0.5% weaker than it was expecting as recently as January. The IMF said that while its forecasts had been prepared on the basis of current trade policy, “intensifying downside risks dominate the outlook”.

Its forecasts show every major economy being hit, with the UK expected to grow by 1.1% this year, down from 1.6% predicted in January. The IMF expects a sharper deterioration for the US, from 2.7% to 1.8%.

Read more: https://www.theguardian.com/business/2025/apr/22/imf-major-negative-shock-trump-tariffs-uk