The News
US President Donald Trump’s trade war will “significantly slow global growth” and increase the chance of a recession in the country, the International Monetary Fund warned Tuesday,
The fund cut almost a percentage point off its growth forecast for the US this year, alongside downgrading outlooks for every G7 nation, as well as economies such as China, India, Brazil, and South Africa. US tariffs will also lead to higher inflation in the US, the IMF predicted, with consumer prices likely to grow 3% this year, higher than expected and above the Fed’s 2% target.
In the IMF’s April outlook, no advanced economy faced a bigger growth downgrade than the US, although the fund stressed that only part of that slowdown could be blamed on Trump’s tariffs.