IMF Chief: It’s Too Soon to Judge US Tariffs’ Effect on the World Economy

The president of the IMF says it’s still unclear how US tariffs would affect the world economy.

International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated on Tuesday that the US tariffs are still a “evolving story” and that it is too soon to tell how they would affect the world economy.

Georgieva, who was speaking at the World Government Summit in Dubai, recognized that there were a lot of unknowns but said the taxes were expected because they had been stated during the election campaign.

“It is a developing narrative… However, there are a lot of unknowns,” she stated. “So, my response to you regarding the impact on the global economy would be that it’s too early to say today.”

Georgieva claimed that the world economy has shown remarkably resilient in the face of several unheard-of catastrophes. She also emphasized how unpredictable inflation trends may be.

We simply need to see how things develop, even on that. Because it might not be inflationary if we are in a scenario where there is a recession in some regions of the world that could force central banks to lower interest rates,” she noted.

Her remarks were made the day after US President Donald Trump said that import duties on steel and aluminum will be raised to a flat 25%. Although the action is intended to help faltering local businesses, it has also increased concerns of a multifront trade war.