"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.

We have cut our global growth forecasts for 2025 and 2026 in April’s update, reflecting the issues above. In our base case, we continue to expect limited easing by the US Federal Reserve this year. Trade tensions and related uncertainties point to continued turbulence in financial markets.