The head of the International Monetary Fund (IMF), Kristalina Georgieva, has called on world leaders to act quickly to resolve escalating trade tensions that pose a threat to global economic stability. Speaking during the IMF and World Bank spring meetings, Georgieva emphasized that ongoing uncertainty—especially stemming from U.S. trade policy—has led businesses to pause investments and consumers to reduce spending.
“Uncertainty is bad for business,” she stated during a press briefing, pointing to the unpredictable nature of President Donald Trump’s aggressive tariff policies. Since his return to the White House in January, Trump has imposed steep import taxes—most notably a 145% tariff on goods from China and a 10% duty on imports from nearly every other country. These moves have reversed long-standing U.S. support for free trade, raising tariffs to levels not seen in over a hundred years.
Georgieva’s remarks come just two days after the IMF downgraded its global growth forecast for the year. The organization, which works to foster global economic growth, financial stability, and poverty reduction, also lowered its outlook for the United States, noting that the risk of a U.S. recession has climbed from 25% to around 40%.
She warned that the brunt of economic damage from these trade disputes will fall on poorer nations, which lack the financial resources to cushion the impact.
Trump’s inconsistent approach—frequently altering or suspending tariffs—has left companies uncertain about future policies and their long-term strategies. This volatility has contributed to a prolonged downturn in financial markets. However, stocks saw a rebound on Wednesday following hints from the administration that it may ease tariffs on Chinese imports. U.S. Treasury Secretary Scott Bessent noted, “There is an opportunity for a big deal here.”