African trade ministers meet today over US tariffs affecting exports
Work constructively to resolve trade tensions - IMF appeals to US, trading partners
Work constructively to resolve trade tensions - IMF appeals to US, trading partners
By: Nii Ammui Fio | 2 mins read
The International Monetary Fund (IMF) has urged the United States and its trading partners to engage in dialogue to de-escalate trade tensions and mitigate the risks they pose to the global economy.
IMF Managing Director Kristalina Georgieva highlighted the need for a collective effort to resolve trade disputes, particularly in light of recent tariff measures, which she said are a significant concern for the world’s economic stability.
"We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth. It is important to avoid steps that could further harm the world economy. We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty," Georgieva explained.
The new tariffs, which include a 10% tax on Ghanaian goods entering the U.S., are part of a broader protectionist policy that also targets China and the European Union.
U.S. President Donald Trump justified these tariffs as necessary to correct what he described as long-standing economic imbalances. In a statement from the White House Rose Garden, Trump remarked, "Our country has been looted, pillaged, raped, and plundered by other nations. Taxpayers have been ripped off for more than 50 years. But that will not happen anymore."
The tariffs have led to immediate pushback from countries like China, which imposed additional tariffs on U.S. goods and restricted exports of rare earth materials. This move escalates the already ongoing trade war between the U.S. and China, with both countries also engaging in formal disputes at the World Trade Organization.
The European Union has also signaled potential retaliation, with EU Trade Commissioner Maros Sefcovic emphasizing the bloc’s intent to find a fair and mutually beneficial solution through negotiations.
"We will not shoot from the hip – we want to give negotiations every chance to succeed to find a fair deal, to the benefit of both sides," Sefcovic stated on social media.
In response to the uncertainty created by these trade barriers, global financial markets have experienced significant turbulence, prompting increased fears of a potential global recession.
Economic analysts, including those from JP Morgan, now estimate a 60% chance of a global recession by the end of the year, up from the previously predicted 40%. The IMF will provide a more detailed assessment in its upcoming World Economic Outlook, which will be released during the IMF/World Bank Spring Meetings later this month.
