IMF Evaluates Impact of Trump's Tariffs on Global Economy

The IMF is analyzing the economic implications of President Trump's tariffs, including a 25% auto tariff. They predict negative impacts on Canadian and Mexican economies but no U.S. recession. Inflation concerns persist globally, especially in Russia, influencing future economic forecasts.

The International Monetary Fund (IMF) is meticulously evaluating the economic impact of President Donald Trump's tariff measures, including a proposed 25% tariff on automobiles. Despite potential adverse effects on Canada's and Mexico's economies, the IMF's baseline projections do not foresee a recession in the United States, as stated by spokesperson Julie Kozack during a Thursday briefing.

While expressing concerns about the economic repercussions of sustained tariffs on North American trade partners, Kozack refrained from divulging specific details. These assessments will be incorporated into the forthcoming World Economic Outlook forecasts slated for release in late April. Some tariff implementations, particularly concerning auto parts, could be postponed until May 3, reflecting ongoing uncertainties.

Kozack highlighted the resilience of the U.S. economy, which continues to perform strongly, contrary to expectations. However, she noted signs of an economic slowdown from 2024's robust pace. Inflation remains a pressing issue, with 'agile and proactive' monetary policies deemed essential. Russian inflation, persistently above target, further emphasizes global economic challenges.

(With inputs from agencies.)