IMF Urges Trade Resolution Amid Rising Global Tensions

The International Monetary Fund (IMF) has warned that escalating trade tensions, particularly between the U.S. and China, are increasing global economic uncertainty, hampering investment, and threatening growth. At its latest meetings, the IMF called for urgent action to resolve these disputes, emphasizing that without certainty, businesses will hesitate to invest and households will be reluctant to spend, further weakening the global economic outlook. IMF Managing Director Kristalina Georgieva specifically criticized China’s heavy state intervention and persistent trade surpluses, urging the country to reduce subsidies and shift toward a consumption-driven economy, while also calling on the U.S. to address its fiscal deficits. Recent moves by former President Trump to substantially raise tariffs on Chinese imports have fueled market volatility and disrupted supply chains, with American companies reporting negative impacts on profits and operations. While Trump has suggested possible tariff reductions, Chinese officials have denied that any substantive negotiations are ongoing. The IMF reiterated its role as a key institution for navigating these challenges and called for reforms to better reflect the current global economic landscape.