The International Monetary Fund (IMF) has raised alarms over mounting global trade tensions, cautioning that rising tariffs—particularly from the United States—are creating significant economic uncertainty. The warning follows the U.S. government’s imposition of a blanket 10% tariff on all its trading partners, Ghana included. Escalating trade disputes with China have further intensified the situation, with retaliatory tariffs from Beijing reaching as high as 145%.
Speaking at the 2025 World Bank/IMF Spring Meetings, IMF Managing Director Kristalina Georgieva emphasized how such protectionist moves could drive inflation across multiple economies. She pointed out that modern supply chains are highly interconnected, and tariffs imposed on imported inputs can ripple through to domestic prices. “The cost of a single item can be influenced by tariffs in dozens of countries,” Georgieva noted, highlighting the complexity of today’s global trade ecosystem.
Georgieva also addressed the impact on business logistics and investment decisions, pointing out that the unpredictability of shifting bilateral tariffs has left companies in limbo. “We’re seeing ships at sea unsure of which port to dock at,” she said. With businesses unable to plan effectively and consumers hesitant to spend, the global economic slowdown may be exacerbated by these rising barriers to trade.
The IMF’s caution adds to growing concerns that prolonged trade friction could destabilize financial markets and hinder economic recovery, especially in developing nations. The organization reiterated that while tariffs may provide short-term fiscal benefits, they ultimately hurt all parties involved—reducing economic activity, shrinking corporate profits, and raising consumer prices. The broader fear remains that continued escalation could unravel progress made since the pandemic and entrench global inequality.
Source: Citi newsroom