"If sustained, this abrupt increase in tariffs and attendant uncertainty will significantly slow global growth," the IMF wrote.

The outlook for the U.S. and global economies this year and next has significantly worsened in the wake of President Trump’s tariffs.

The U.S. economy will experience sluggish growth in 2025 due to an escalating trade war and "high levels of policy uncertainty," the International Monetary Fund said in a report Tuesday. The projections reinforce economists' warnings about the negative repercussions of President Trump's tariffs on the economy.