Economic Ripple: Tariffs Spark Global Negotiation Frenzy

Global economic growth is anticipated to decline as U.S. President Donald Trump's tariffs impact trade relations. Global finance leaders are negotiating deals with Trump, aiming to reduce tariffs. The IMF predicts a slowdown in growth for both the global economy and the U.S., while U.S.-China trade tensions continue.

The global economy faces a slowdown due to U.S. President Donald Trump's hefty tariffs, the International Monetary Fund (IMF) warned, as international finance leaders converge in Washington, D.C., to negotiate lower levies.

With 18 countries proposing deals, Trump's team is actively engaged in discussions with 34 nations to potentially reduce import tariffs. Optimistically, Trump signaled the possibility of a significant trade agreement with China, potentially reducing tariffs and boosting market confidence.

The IMF projections indicate a decline in global growth to 2.8% in 2025, down from 3.3% in 2024. Both China and the U.S. face reduced growth forecasts, with ongoing trade tensions fostering a challenging negotiation landscape as countries strive for tariff relief.

(With inputs from agencies.)