IMF Warns of Global Risks as US Slaps 50% Tariffs on Import

The IMF's response to new US tariffs in 2025 was swift and clear: the organization is closely monitoring the latest wave of American tariff hikes, warning that uncertainty about the global economic outlook remains high. The IMF urged all countries to work constructively to stabilize trade and address shared challenges, promising a detailed update later this month as the August 1 trade negotiation deadline approaches.

President Donald Trumps announcement of a 50% tariff on copper imports and a 50% duty on goods from Brazil marks a dramatic escalation in the ongoing global trade war. The new tariffs, set to take effect August 1, also extend to 21 other countries, raising concerns across international markets and prompting heated responses from affected nations.

The impact of Trumps tariffs on the global economy is already being felt. The IMF, in its April forecast, slashed growth projections for the United States, China, and most other countries, citing the highest US tariff rates seen in a century. Economists warn that the global trade war 2025 economic outlook is clouded by these protectionist measures, which threaten to slow growth even further as the year progresses.

Manufacturing surveys reveal that US tariffs affect factories in Asia and Europe as well. Uncertainty over future tariffs has dampened factory activity in many Asian economies, with some sectors managing modest growth while others contract or brace for further disruptions. European and US manufacturers are also feeling the pressure, with rising input costs and shifting supply chains complicating recovery efforts.

Despite administration claims that tariffs have not fueled inflation and that recent tax cuts will offset negative impacts, many analysts remain skeptical. The IMF cautions that while some economic activity has picked up due to stockpiling, the underlying softness in global surveys highlights the challenges ahead. As tariffs bite harder in the second half of 2025, policymakers and businesses worldwide are left navigating an unpredictable landscape.

About the IMF

The International Monetary Fund (IMF) is a global organization dedicated to promoting international monetary cooperation, securing financial stability, facilitating international trade, and fostering sustainable economic growth. The IMF provides policy advice, financial assistance, and technical support to its 190 member countries.