IMF Monitors U.S. Tariffs

By Andrea Shalal

WASHINGTON (Reuters) – The IMF stated on Thursday it is closely monitoring recent U.S. tariff announcements, emphasizing that uncertainty regarding the global economic outlook remains elevated. It urged countries to collaborate to ensure a stable trade environment.

The IMF indicated more information would be available with the update of its April World Economic Outlook, scheduled for late July, just ahead of the new August 1 trade negotiations deadline.

Recently, U.S. President Donald Trump expanded the global trade war by introducing a new 50% tariff on U.S. copper imports and a similar duty on goods from Brazil, effective August 1. He also announced increased tariffs on 21 additional countries.

An IMF representative remarked, “Trade-related developments are evolving and uncertainty remains high. Countries should continue to work constructively to facilitate a stable trade environment and address shared challenges.”

Concerns over future U.S. tariffs are overshadowing the outlook for manufacturers across the U.S., Asia, and Europe, according to recent surveys. However, some companies appear able to grow despite this uncertainty.

Analysts noted that the ongoing difficulties indicated by surveys reflect the challenges businesses and policymakers face as they respond to Trump’s trade strategies aimed at reshaping the global trade landscape.

Trump administration officials contend that current tariffs have not driven inflation and assert that a recently approved tax-cut law will counterbalance any short-term adverse effects from new trade tariffs.

In April, the IMF reduced its growth forecasts for the U.S., China, and most countries due to U.S. tariffs reaching 100-year highs and warned that rising trade tensions would further slow growth.

Economic activity has increased as businesses stockpiled in anticipation of tariffs, and the U.S. and China have retreated from imposing steep reciprocal tariffs, which may indicate a short-lived upward revision. Economists emphasize that uncertainty remains significant and that escalating tariffs will have a more pronounced impact in the latter half of the year.