International Monetary Fund (IMF) Managing Director Kristalina Georgieva has called on the United States to urgently strike trade agreements to mitigate growing risks to the global economy stemming from heightened tariff uncertainty, largely linked to former President Donald Trump’s policies.
Speaking during a press briefing at the IMF’s spring meetings in Washington, Georgieva avoided direct criticism of the US administration but noted that recent shifts in global trade policy had “skyrocketed uncertainty.” She emphasized that resolving these tensions was critical for stabilizing an already fragile economic outlook.
“A settlement on trade policies among key global players is crucial — and needs to happen quickly,” she said. “Uncertainty is proving extremely costly. Without clarity, businesses hesitate to invest, and households choose to save instead of spending, further weakening an already slow growth trajectory.”
Earlier this week, financial markets responded positively to signs that Trump may be softening his stance on trade, including the possibility of a deal with China that could significantly lower tariffs from the current 145%. However, no formal agreement has been reached. The UK, among others, is also in talks with Washington. UK Chancellor Rachel Reeves is set to meet US Treasury Secretary Scott Bessent to discuss a potential deal, although she has said Britain will not rush into any agreement.
The IMF this week downgraded its global growth forecast to 2.8% for 2025, down from a previous estimate of 3.3%, warning of increased downside risks if trade tensions escalate further. “The global economy is facing a new and serious test,” Georgieva said, adding that many countries lack fiscal or monetary space to respond effectively due to previous shocks.
Responding to questions about the atmosphere among delegates, Georgieva remarked, “The mood is anxious. We were on the path to stability, and now this adds a fresh layer of uncertainty.”
Despite criticism from some US officials, including Treasury Secretary Bessent — who cautioned the IMF and World Bank against “mission creep” into issues like gender and climate — Georgieva welcomed his affirmation of US support for the institutions. She acknowledged the need for focus but refrained from confirming whether the IMF would scale back its work in those areas.
“It’s a complicated world, with complex challenges,” she said. “We are a fiscally disciplined institution, and yes — we must remain focused.”
