Key Figures and Context
The International Monetary Fund (IMF) Director Kristalina Georgieva stated that the global economy will experience a slowdown but not fall into recession this year, despite tariffs imposed by U.S. President Donald Trump.
Donald Trump, the 45th President of the United States, has implemented a universal minimum tariff of at least 10% on all products entering the U.S., effective since April 5th, and up to 145% on Chinese products in addition to existing tariffs before his return to the White House in late January.
Georgieva highlighted that “the effective tariff rate in the U.S. has skyrocketed to levels not seen in decades,” with current tariffs estimated around 20% considering the latest exemptions on semiconductors and electronic products.
Trade Tensions Between U.S. and China
The trade tensions between the United States and China have escalated dramatically, with both nations exchanging blows. In retaliation, China has imposed 125% tariffs on U.S. products.
Georgieva emphasized that “while the giants clash, smaller countries get caught in crossfire. China, the European Union, and the U.S. are among the largest importers,” she warned.
“We Can Cooperate”
Despite the challenges, Georgieva sees opportunities “if we respond intelligently.” This includes building “a more balanced and resilient global economy” to crises.
- Reforming Financial Sector: Ambitious reforms in banking, capital markets, competition rules, intellectual property rights, and adapting to artificial intelligence usage.
- Addressing Trade Imbalances: Correcting significant imbalances, such as budget deficits in some countries (like the U.S. and France) and trade surpluses in others (China and Germany).
Georgieva stressed that these rebalancing efforts are challenging but necessary. In today’s “multipolar” world, the IMF’s role as a crucial dialogue platform is more important than ever.
