The global economy, already fragile, now faces a new shock—this time from the United States. President Donald Trump’s latest tariff wave has dragged average U.S. duties to levels unseen in over a century. The trade war with China is escalating fast.
The IMF’s latest World Economic Outlook attempts to map the damage. But it does so with caution. Its central message is not a forecast—it’s a warning.
“Nobody knows what Trump will do next,” the report implies.
“And no one can say how the world will respond.”
What we do know is this: elevated uncertainty is now the clearest economic reality.
The role of government, the IMF suggests, is to reduce that uncertainty. Trump’s administration, it argues, has chosen the opposite.
The global economy had just begun to stabilise. Inflation was falling. Labour markets were improving. Growth, while lower than pre-pandemic, was returning.
But fragilities remained. Many governments are saddled with debt. Interest rates are high. The old tools—monetary and fiscal—are harder to use.
Trump’s trade war hits in that context. And it’s already reshaping forecasts.
Global growth is projected to fall to 2.8% in 2025, down from 3.3% in 2024.
Recovery to 3% is expected only by 2026.
The figures reflect policy as of April 4. But events didn’t wait.
On April 9, Trump paused new tariffs for 90 days—then raised duties on Chinese goods. On April 12, China hit back.
As of mid-April, the U.S. effective tariff rate on Chinese goods stood at 115%. China’s rate on U.S. goods hit 146%.
The average U.S. tariff on global imports: 25%, up from just 3% in January.
This is more than a numbers game. The IMF explains how tariffs hurt the imposer:
The risk isn’t just economic—it’s systemic.
Brutal decoupling between the U.S. and China
Eroding trust in the U.S.
Currency shifts, capital flight, and political instability
Pressure on emerging economies with shrinking international support
Even the threat of major conflict
The IMF, by nature, doesn’t dive into geopolitics. But the shadows are clear.
Could the world step back from the edge?
But the report closes with realism, not hope.
We are not yet off the path to crisis. The question is whether we will choose to leave it.
The World Bank has lowered its global growth forecast for 2025 to 2.3%, warning that escalating trade tensions and policy uncertainty - particularly stemming from U.S. tariffs - pose major threats to global economic stability.
Protests against immigration enforcement intensified across Texas on Monday, as part of a broader national movement challenging ICE raids and government immigration policies.
The European Commission has announced its 18th sanctions package targeting Russia, focusing on cutting Moscow’s energy revenues and limiting its military capabilities.
British scientists have built more than 3,800 digital replicas of human hearts using AI and clinical data, aiming to revolutionize diagnosis, correct medical bias, and improve patient care.
Kazakhstan ranks 114th out of 139 countries in the 2025 Global Cost of Living Index, with living costs 73.4% lower than New York City, the index baseline (100%).
The World Bank has lowered its global growth forecast for 2025 to 2.3%, warning that escalating trade tensions and policy uncertainty - particularly stemming from U.S. tariffs - pose major threats to global economic stability.
Protests against immigration enforcement intensified across Texas on Monday, as part of a broader national movement challenging ICE raids and government immigration policies.
The European Commission has announced its 18th sanctions package targeting Russia, focusing on cutting Moscow’s energy revenues and limiting its military capabilities.
British scientists have built more than 3,800 digital replicas of human hearts using AI and clinical data, aiming to revolutionize diagnosis, correct medical bias, and improve patient care.
Kazakhstan ranks 114th out of 139 countries in the 2025 Global Cost of Living Index, with living costs 73.4% lower than New York City, the index baseline (100%).
Start your day informed with AnewZ Morning Brief: here are the top news stories for June 8th, covering the latest developments you need to know.
Presidential candidate Miguel Uribe Turbay is in critical condition after being shot three times — including twice in the head — during a campaign event in Bogotá.
A 30-year-old woman was shot by police in Munich on Saturday evening after stabbing two people at Theresienwiese, a central park best known for hosting Oktoberfest.
Mexican President Claudia Sheinbaum has condemned U.S. immigration raids and National Guard deployment in Los Angeles, calling for reforms instead of enforcement.
Israel’s military says it has identified the body of top Hamas commander Mohammed Sinwar beneath a hospital in southern Gaza.
A human-sized Labubu toy has sold for over $150,000 at a Beijing auction, setting a new record as the blind box collectible craze shifts into the realm of high-end art.
The World Bank has lowered its global growth forecast for 2025 to 2.3%, warning that escalating trade tensions and policy uncertainty - particularly stemming from U.S. tariffs - pose major threats to global economic stability.
The forum features plenary sessions, industry-focused panel discussions, B2B meetings, and a large investment exhibition.
Marks & Spencer has resumed online orders in Great Britain six weeks after a cyber-attack forced it to halt sales, though full online services are still being restored.
Sales of electric and hybrid vehicles in China saw a strong year-on-year growth in May, boosted by government-backed trade-in programs designed to stimulate domestic consumption.
The World Bank has lowered its global growth forecast for 2025 to 2.3%, warning that escalating trade tensions and policy uncertainty - particularly stemming from U.S. tariffs - pose major threats to global economic stability.
Protests against immigration enforcement intensified across Texas on Monday, as part of a broader national movement challenging ICE raids and government immigration policies.
The European Commission has announced its 18th sanctions package targeting Russia, focusing on cutting Moscow’s energy revenues and limiting its military capabilities.
British scientists have built more than 3,800 digital replicas of human hearts using AI and clinical data, aiming to revolutionize diagnosis, correct medical bias, and improve patient care.
Kazakhstan ranks 114th out of 139 countries in the 2025 Global Cost of Living Index, with living costs 73.4% lower than New York City, the index baseline (100%).
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment