Since his second term began, President Donald Trump has imposed double-digit tariffs on nearly every nation, sending markets into turmoil. Trump said it was necessary, posting in all caps on Truth Social, "Will there be some pain? Yes, maybe (and maybe not!)." But "it will all be worth the price that must be paid."
In a new report this week, the International Monetary Fund (IMF) found Trump's trade war would negatively affect both the U.S. and global economies.
"Following an unprecedented series of shocks in the preceding years, global growth was stable yet underwhelming through 2024 and was projected to remain so in the January 2025 World Economic Outlook (WEO) Update," the IMF wrote in the executive summary of the April 2025 WEO report. "However, the landscape has changed as governments around the world reorder policy priorities."
