The International Monetary Fund warns that the Trump tariff feeds unconfirmed global economic expectations International Trade

The International Monetary Fund (IMF) says that US President Donald Trump’s tariff has increased the risk of global financial stability.

This warning was part of the Global Financial Stability Report in the International Monetary Fund on Tuesday, as global financial leaders met in Washington to discuss the uncertainty caused by the customs tariff policies.

The International Monetary Fund indicated this Trump’s tariff rate has increased previous levels It was reached during the Great Depression, which witnessed an increase in 60 percent in one of the worst economic periods in modern history, a shrinkage that led to the loss of more than 12 million Americans their jobs.

The influence of global ripples

The impact of the global ripples took the spotlight in the International Monetary Fund report. The International Monetary Fund said: “The risk of global financial stability has increased significantly, driven by more strict global financial conditions and increased economic uncertainty,” said the International Monetary Fund.

The Fund oversees a decline in US economic growth by 1.8 percent for this year – a contraction from its previous 2.7 percent expectations and a full percentage of this time last year.

China is also expected to grow more slowly due to the imposed American tariff, the additional definitions that wave on the horizon on the goods including medications, and the mutual definitions in Beijing on American goods. The International Monetary Fund is now expecting that it will expand 4 percent in 2025, which is more than half a point from the previous expectations.

In Europe, the International Monetary Fund expects that the euro zone of 20 countries will witness 0.8 percent this year and 1.2 percent in 2026. The new report is a 0.2 percent decrease from its expectations at the beginning of the year.

The International Monetary Fund also expects a decrease in Mexico this year, with growth of 0.3 percent for 2025, but it is expected to recover next year with a growth of 1.4 percent. In all parts of Latin America and the Caribbean Sea, 191 members expect a 1.4 percent decrease in growth from its expectations 2024, but it expects growth in 2026.

“I do not remember another case in my career as one work by a president or prime minister has led this sudden growth within weeks,” Stewart McCainch, Executive Director of Al -Khanq Financial Group at Thirty told Al Jazerera.

Recent market markets It rose in the United States Earlier this month after Trump’s tariff entered into force. As a result, interest rates have increased in other countries around the world, causing borrowing to become more expensive in other countries as well.

The International Monetary Fund said: “The emerging market economies, which are already facing the highest real financing costs in a decade, may need to re -financing its debts and financing financial spending at higher costs,” said the International Monetary Fund.

The International Monetary Fund also said that other geopolitical risks such as military conflicts can stimulate uncertainty.

Economic consensus

Fears of other prominent economists around the world who expect to shrink. Goldman Sachs said he expected “a very low growth in the United States by 0.5 percent.” The recession next year is 45 percentAccording to the report “Risks of Stagnation caused by the Investment Bank” issued on Monday.

Earlier this month, a survey of the total economic expectations conducted by the National Business Economy Association showed that more than half of the respondents believe that the possibility of recession in 2025 may reach 49 percent. Economists at JPMorgan now believe that recession opportunities are 60 percent.

“The possibility of the growing global recession and the possibility of an American recession has risen. We have increased. We have to deal with it. When you think about the position of the consensus of the American economists, which has turned greatly,” McCaintech added.

“In the fall of last year, the majority of economists in the United States believed that there would be no recession this year. In fact, most of the consensus positions on the American economy were considered to be the most powerful advanced economy in the world, and this could only improve. Unfortunately, unfortunately, After “Editing Day”, It has worsened. “

The American Federal Reserve also expected that this year growth would weaken to 1.7 percent. This comes at a time when the president pushed the interest rates, The Jerome Powell chair tastes. Last week, Trump said that Powell’s exit could not come soon enough and stressed that if he asked Powell to leave this role. Powell said he will constantly serve the remainder of his term, which ends in May 2026.

Pierre Olivier Gurinchas, chief economist of the International Monetary Fund, has retracted Trump’s growing rhetorical attacks on Powell, saying, “The independence of the central bank is still the cornerstone”, for a group of journalists.