Increasing tariffs in the United States will weaken the global economy and increase inflation this year, according to estimates published in the next week of the International Monetary Fund.
IMF managing director Crystalina Georgiva said on Thursday that the severe growth in the Trump administration’s duties had increased global uncertainty. He added that import tax will slow down global growth, but will not create a global downturn. The details of the IMF’s view will be issued on Tuesday.
Georgiva said the elasticity of the global economy was being tested by “reboot of the global trading system” which threatens to cause unrest in the financial market.
This turmoil has been playing in the financial markets for weeks for weeks, especially on Wall Street, which has experienced wild swing from every day and often for more than hours to hours.
The IMF chief also echoed some concerns of the Trump administration. He called on the countries to reduce their tariffs and reduce other obstacles in trade, saying that he had been postponed in the last decade after constant progress for many years after World War II.
“Trade Distortion – Customs and NonTariff Burches – A multilateral system fed the negative ideas that failed to provide the playground of any level,” he said. “In some places this feeling of wrongdoing feeds the narrative: We play by the rules when others play the system without fine.”
Georgiva has added that tariffs are the cause of uncertainty, which can be expensive. He said that due to the complexity of the supply discipline, the cost of a single item could be affected by dozens of countries, he said.
Increased trade barriers also immediately affect growth and can lead to more domestic production, it takes time to implement, he added.
In the most recent estimates issued in January, the IMF predicted the world economy nominally increase and inflation, though it warned that President Donald Trump’s policy was cloudy, including tax deduction and raising tariffs on foreign imports.
The Washington-based NDing agency said they hoped that the global economy would increase by 5.7% this year and later, in 2021, it increased from 8.2%.
Global inflation has increased after the disruption of global supply discipline and the high prices of the Covid -1 epidemic, and the global inflation has risen to 5.2% in 2021 and 5.7% in 2026.
However, in a blog post with these hypotheses, the chief economist of the fund, Pierre-Olivia Gaurichas writes that Trump promised to introduce policies “In the nearest term, inflation is likely to be pushed more.”
These forecasts are expected to change since January – probably significantly – such as Trump’s trade war has increased in recent months, especially with the largest trade partner in the United States, with China.
Trump has paused or pursued many of his tariffs — it leads to more turmoil in the stock market-but Tat-Tat is in the fight with China and has not shown any sign of supporting it. Every time Trump raises tariffs in China, Beijing has responded with tariffs on US imports.
The IMF is a 191-national NDING NDO that works to promote economic growth and financial stability and reduce poverty worldwide.
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AP business writer Matt Oat contributed.
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