Uncertainty around U.S. tariffs risks denting global economic activity, Kristalina Georgieva, managing director of International Monetary Fund (IMF), said on Monday.
The longer the uncertainty persists about U.S. President Donald Trump’s approach to tariff policy, the greater the risk to the outlook, Georgieva was quoted by Reuters as saying.
“Uncertainty, our research shows, the longer it goes, the more it may negatively impact growth,” she said in an interview with Reuters.
She IMF is seeing signs in recent data that consumer and investor confidence is weakening, and that then translates into impacts on growth prospects, which may be enough to trigger a “small correction” downward in the IMF’s global growth forecast, Georgieva said.
Trump has announced a wide array of tariff threats, with some already in place and more expected to be announced on Wednesday.
