The International Monetary Fund warns that U.S. tariffs will weaken the global economy and cause inflation. While a recession seems unlikely, ongoing trade tensions, especially with China, create economic uncertainties worldwide.

Since April 2018, the U.S. has initiated significant tariff hikes, reaching levels not seen since 1909. This marks a fundamental departure from global trade cooperation and raises questions about future economic stability.

Countries worldwide have reacted with a mix of tariffs and trade negotiations. China has imposed its own tariffs, while the EU seeks diplomatic avenues. Meanwhile, Canada has retaliated against U.S. measures, showcasing global trade tensions.

The IMF stresses that rising tariffs may generate short-term revenue but ultimately hinder economic growth. They highlight that trade barriers create uncertainty and can reduce long-term productivity, endangering global economic health.

The tariffs are forecast to slow down global growth, particularly impacting emerging markets. Inflation is likely to rise due to increased production costs, affecting consumers and businesses internationally.

In the U.S., tariffs could lead to over 740,000 job losses over a decade, particularly in manufacturing and agriculture. Economic instability has already triggered stock market drops and currency fluctuations.

Looking ahead, the IMF urges nations to balance fiscal discipline with trade reform. Emphasizing collaboration and reduced tariffs is crucial for future economic stability and fostering a healthy global trading system.