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The President of the United States of America (USA) Donald Trump announced reciprocal tariff measures on its global trade partners, which has sparked concern on macro-economics.
The International Monetary Fund (IMF) has reacted with concern on the wake of the drastic measures by the United States, declaring a global trade war.
The Managing Director for the IMF Ms Kristalina Geogieva called on the US to resolve its challenges with its trading partners constructively to avoid uncertainty. She said the IMF will assess the implications of the tariff measures on the global economy.
“We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty.
We will share the results of our assessment in the World Economic Outlook, which will be published at the time of the IMF/World Bank Spring Meetings later this month,” said Georgieva.
A number of countries including Europe, South Africa, and China amongst others have reacted to the tariff measures, which could lead to a battle of prices on products imported and exported to the United States.
China has vowed to hit back following the radical increase in tariffs, this escalates the already strained trade relations between the two big economies in the globe, resetting the relations between the countries that dates back decades ago.
Trump also targeted small economy countries in Africa, who will be adversely affected by the new measures imposed by the Trump administration. More countries are expected to react to the tariff measures and may also lead to a withdrawal from doing business with America and seek business elsewhere.
