President Trump's Tariffs Spark Global Economic Uncertainty Amid IMF Growth Projections

Published on 4.27.25

  The imposition of tariffs by President Donald Trump has sent shockwaves through the global economy, prompting warnings from the International Monetary Fund's chief economist Pierre-Olivier Gourinchas that the world is on a path for slower growth this year. The IMF projects global growth to reach 2.8% in 2023 and 3% in 2024, down from previous estimates, due to increased policy uncertainty caused by the tariffs. The recent tariffs announced by President Trump pose a significant threat to food trade, domestic production, and the livelihoods of millions of smallholder farmers in Asean member states. This uncertainty presents an opportunity for Asean to diversify its supply sources and reduce dependency on the US, potentially leading to long-term gains through intra-bloc trade. The 90-day delay announced by President Trump offers temporary relief but has not alleviated uncertainty surrounding trade with the US. This is expected to lead to price increases and shortages affecting all consumers. The impact of these tariffs will be felt across various sectors, including food production and trade, which could have far-reaching consequences for global economic growth. The IMF's economic counselor Pierre-Olivier Gourinchas had warned that trade policy uncertainty is at an all-time high, but the article does not provide any information about this statement in relation to the tariffs imposed by President Trump.

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