The International Monetary Fund cautioned on Tuesday that it is “premature and incorrect” to conclude that President Donald Trump’s tariff policies have not affected global growth.
In its World Economic Outlook, the IMF slightly upgraded projections for both U.S. and global growth but warned that the long-term impact of tariffs could still emerge.
Global economy shrugs off Trump’s tariffs, at least for now, IMF says ... the global economy is performing better than expected despite Trump’s tariffs, but future growth prospects are at risk ...@davidjlynch @washingtonpost https://t.co/2RtV3nC5Qn pic.twitter.com/jKyoSID6qa
— John Ashcroft (@jkaonline) October 14, 2025
The global economy is expected to grow 3.2% in 2025, while U.S. growth is forecast at 2% this year and 2.1% in 2026, reflecting modest gains from earlier estimates.
IMF chief economist Pierre-Olivier Gourinchas credited recent trade deals and exemptions negotiated by the Trump administration for easing tariff pressures.
IMF upgrades US growth outlook as Trump’s tariffs cause less disruption than expected https://t.co/YmWyUhEaY7 pic.twitter.com/VnsUSAD9Iw
— Broomfield Enterprise (@bfld_enterprise) October 14, 2025
Still, the IMF noted that trade tensions remain high, especially after Trump threatened 100% tariffs on Chinese goods amid disputes over rare earth exports.
The fund said businesses have adapted for now, but warned that uncertainty and delayed effects may yet weigh on global trade.
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TIPP Staff
