The International Monetary Fund released a report on the 22nd local time, stating that
the Trump administration’s decision to impose import tariffs on almost all trade partners could further impact global macroeconomics.
The report indicates that the United States’ tariff actions will reduce global demand in the short term, leading to higher import prices and further exacerbating inflationary pressures. Furthermore, the uncertainty surrounding tariffs could weaken consumer and corporate confidence, exacerbating financial market volatility.
The report suggests that the US’s tariff actions could lead countries to further increase trade barriers in response to escalating trade imbalances, thereby intensifying geopolitical divisions. This could have lasting effects on the global economy.