IMF raises concerns over rising trade uncertainty and tariffs

The International Monetary Fund (IMF) is worried about global trade uncertainties. These uncertainties create serious challenges for countries exporting to the United States.

Recently, the U.S. government imposed a 10% tariff on all trading partners, including Ghana. Tensions with China have also risen, leading to retaliatory tariffs of 125% and 145%.

At the 2025 World Bank Group/IMF Spring Meetings, IMF Managing Director Kristalina Georgieva spoke about these issues. She highlighted the inflationary impact on product prices in affected economies.

Georgieva explained that modern supply chains are complex. Imported inputs are part of many domestic products. Tariffs in various countries can influence the cost of a single item.

She noted that bilateral tariff rates make business planning difficult. Ships at sea are unsure where to dock due to uncertainty. This situation delays investment and consumer decisions.

Georgieva warned that prolonged uncertainty destabilizes global trade and financial markets. Rising trade barriers immediately impact economic growth. While tariffs may raise revenue, they reduce overall economic activity.

Higher tariffs do not only affect trading partners; importers absorb some costs too. Ultimately, consumers pay more for goods as a result.

The IMF's comments reflect growing concern over protectionist policies. There are fears that escalating tensions could harm global economic stability and hinder recovery in developing economies.