The International Monetary Fund (IMF) has cut its global growth forecast for 2025 to 2.8%, down from 3.3%, citing the economic impact of escalating U.S. tariffs under President Donald Trump’s administration. These tariffs, some reaching as high as 145%, have triggered trade tensions worldwide, notably with China imposing retaliatory tariffs of up to 125% .Reuters
Why this matters: The IMF warns that continued trade conflicts could further dampen economic activity, increase financial market volatility, and tighten financial conditions globally.Reuters
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