By Andrea Shalal and Rodrigo Campos

WASHINGTON (Reuters) – The International Monetary Fund (IMF) on Thursday stated it is monitoring developments in the U.S., including the Trump administration’s attempts to cease foreign aid and impose tariffs on China. However, it remains too early for clear assessments of the impact.

The global lender has continuously cautioned countries that protectionist measures, trade restrictions, and increased uncertainty could hinder global growth. IMF spokesperson Julie Kozack indicated that the consequences of the U.S.’s announced tariffs will depend on the reactions of other nations, consumers, and future trade occurrences.

In response to proposals found in the Project 2025 agenda—drafted by prominent members of President Donald Trump’s administration advocating for the U.S. to withdraw from the IMF—Kozack noted the IMF’s long-standing collaboration with U.S. administrations and its desire to maintain this relationship with its largest shareholder.

> “We are a global institution with a well-defined mandate to support global economic and financial stability and foster growth and development in the world economy,” said Kozack. “We take our responsibility to serve our membership very seriously.”

Last month, the IMF slightly adjusted its 2025 global growth forecast upwards by one-tenth of a percentage point to 3.3%, attributing this to unexpected growth in the U.S. which offsets declining projections in Germany, France, and other significant economies.

Despite this adjustment, the IMF cautioned that global growth falls short of the historical average of 3.7% recorded from 2000-2019, advising nations against unilateral measures such as tariffs, non-tariff barriers, or subsidies that could adversely affect trading partners and provoke retaliation.

Policies like these “rarely improve domestic prospects durably” and can result in “every country worse off,” added IMF chief economist Pierre-Olivier Gourinchas in his blog prior to Trump’s presidency.

The IMF has been reserved regarding Trump’s tariffs, an executive order to suspend most U.S. foreign aid, and Elon Musk’s efforts to scale down the U.S. Agency for International Development, which Musk has derided as a “criminal” organization.

Cuts to U.S. foreign aid are anticipated to severely impact developing nations and war-stricken regions like Sudan and Ukraine.

Since assuming office, Trump has declared 25% tariffs on imports from Mexico and Canada, although he has postponed their initiation until March 1. Additionally, a 10% tariff on Chinese goods commenced on February 4, with China announcing retaliatory tariffs starting February 10.

The IMF’s suggestions for the U.S. include deficit reduction and deregulation, aligning with Trump’s agenda, yet its warnings against protectionist policies may not resonate well with Trump, who aims to lessen dependence on income tax while increasing reliance on tariffs and other external sources.

Treasury Secretary Scott Bessent, in charge of the U.S. shareholding in the IMF and World Bank, reiterated these views in a Fox Business interview on Wednesday. As of now, it remains unclear if Bessent has met with IMF Managing Director Kristalina Georgieva since he took office.