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| The IMF and World Bank have not provided clarity on the issue of tariffs |
| Washington, 28.04.2025 |
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| Global financial leaders who met in Washington this week for the spring meetings of the International Monetary Fund (IMF) and the World Bank (WB) wanted to clarify what it would take to get relief from US President Donald Trump's tariffs. And how much "pain" it would bring to the global economy. But they took home more questions than answers. TASR reports this based on a Reuters report. Many felt that the Trump administration had conflicting demands on trading partners.
Finance and trade ministers in Washington tried to meet with their US counterpart, Scott Bessent, and other key administration officials, but without success. Those who did manage to do so were often told to be patient. But time is running out before the 90-day reprieve on reciprocal tariffs expires. In fact, not a single deal was struck this week, even though the Trump administration offered 18 written proposals and a full package of negotiations. “We are not negotiating. We are just presenting and discussing the economy,” said Polish Finance Minister Andrzej Domanski.
Warnings that the 25 percent tariffs already in place on all U.S. imports of vehicles, steel and aluminum, and a blanket 10 percent tariff on other imports, would cause painful damage not only to the U.S. but also to other economies, have been largely ignored by U.S. officials. “They think it won’t be that bad,” Domanski said. “They think the pain will be short-term and the gain long-term. I’m worried we’ll have long-term pain,” he added.
The Trump administration’s most important trade talks this week were with Japan and South Korea. But the results were inconclusive, even as Bessent spoke of “productive” talks. Specific demands regarding the Japanese yen were not discussed, but monetary policy is expected to be part of future talks, as the United States sees the yen’s weakness against the dollar as a non-tariff barrier to U.S. exports.
The IMF cut its economic growth forecasts for most countries this week but stopped short of predicting recessions. Not even the United States and export-dependent China, which now faces 145 percent U.S. tariffs on many goods.
IMF Managing Director Kristalina Georgieva acknowledged that members are concerned about uncertainty, inflation and war. But she hopes trade talks will ease the tariff tensions. “Uncertainty is really bad for business, so the sooner this cloud that hangs over our heads is lifted, the better for profits, for growth, for the global economy,” she said.
World Bank Chief Economist Indermit Gill warned at the meeting about rising debt levels in developing countries. He warned that the tariffs had caused a sharp slowdown in trade and foreign direct investment, which are key to them.
Politicians breathed a sigh of relief, however, when Bessent expressed support for the IMF and the World Bank, even as he criticized them for getting lost in projects like climate change that have reduced their effectiveness. But rather than withdrawing from these institutions, as the Republican manifesto Project 2025 suggests, Bessent said he wanted them to refocus on their core mission, which is to ensure economic stability and development.
“I think most people left here thinking they had to prepare for things to get worse economically,” said Josh Lipsky, a former IMF adviser who is now director of the Atlantic Council’s Geoeconomic Center.odkaz na stránku |
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