The international Monetary Fund (IMF) Managing Director, Kristalina Georgieva, has expressed concern over new U.S. tariffs, calling them a major risk to the global economy amid ongoing economic sluggishness.
She expressed the concerns in a statement, following Tuesday’s announcement of the tariff measures.
“We are still assessing the macroeconomic implications of the announced tariff measures,” Georgieva stated.
She emphasised that these tariffs pose a “significant risk to the global outlook” during a period of slow economic growth.
The IMF chief underscored the necessity of avoiding actions that could further damage the world economy.
She urged the United States and its trading partners to engage in constructive dialogue.
“We appeal to the U.S. and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” she said.
Uncertainty in trade policies, she suggested, could further weaken investment and growth.
Georgieva’s remarks come as concerns grow over the impact of protectionist policies.
Tariffs often lead to retaliatory measures, which can disrupt global supply chains and elevate costs for businesses and consumers.
The U.S. announced on Wednesday a 14 per cent tariff on goods coming from Nigeria.
The move, part of Trump’s broader protectionist trade policy, triggered uncertainty in financial markets, with Wall Street, European indices, and Asian markets all seeing turbulence.
Trump’s decision to impose new tariffs on Nigeria follows months of trade tensions, with the U.S. President arguing that Nigeria has benefited unfairly from US trade policies.
The specific levies, which took effect immediately, include duties on key Nigerian exports such as agricultural products and manufactured goods.
While the specifics of the U.S. tariffs remain under analysis, past similar measures have led to tensions with major trading partners.
China, the European Union, and other nations could respond with countermeasures.
The IMF has consistently warned against escalating trade restrictions.
The organisation has previously highlighted that global trade tensions have already slowed economic recovery following the COVID-19 pandemic.
Georgieva confirmed that the IMF will release a full assessment of the tariffs’ impact in the World Economic Outlook.