The International Monetary Fund on Tuesday cut growth forecasts for the United States, China and most other nations, as a result of turbulent U.S. tariffs.
These ongoing tariffs, a result of the Trump administration, have hit a 100-year high and caused the IMF to not only slash forecasts but also issue a warning that further global trade tensions will worsen the situation.
The new guidance was released in the World Economic Outlook, which was put together in the 10 days after Trump began to announce his new, much higher baseline tariffs on the majority of the U.S.'s trading partners.
Global growth forecast in the Outlook was subsequently cut by 0.5 percentage points to 2.8% for 2025, and by 0.3 percentage point to 3% from its previous forecast in January, which estimated growth would reach 3.3% in both years.
The IMF also said inflation was expected to decline more slowly than was originally expected in January, and said the report was a “reference forecast”.
Zooming in to specific nations, the forecast for U.S. growth was pulled back to 1.8% for 2025, a full percentage point down from 2.8% growth last year and China's growth forecast was cut to 4% for both 2025 and 2026.
