IMF raises concerns over rising trade uncertainty and tariffs

The International Monetary Fund has expressed its concern over increasing global trade uncertainties, cautioning that they pose grievous challenges for countries exporting to the United States.

This appears in the wake of the US government’s decision to inflict a 10% tariff to trading partners including Ghana, as well as rising tensions with China, which have activated retributive tariffs of 125% and 145%.

Speaking at the 2025 World Bank Group/IMF Spring Meetings, the Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva underscored the far-reaching effects of these new evolutions, especially on the inflationary impact on product prices in economies affected.

The Managing director explained that, “The complexity of modern supply chains means imported inputs are embedded in a wide range of domestic products. The cost of a single item can be influenced by tariffs in dozens of countries”.

Emphasizing that, “In a world of bilateral tariff rates—each potentially shifting up or down—business planning becomes extremely difficult. We’re seeing ships at sea unsure of which port to dock at. Investment and consumer decisions are being delayed.”

She further discouraged that prolonged uncertainty is not only destabilizing trade but also affecting financial markets and consumer behavior.

Georgieva again said, “Rising trade barriers impact growth immediately. Tariffs, much like taxes, may raise revenue, but they do so at the expense of reducing and redirecting economic activity,” Adding that, “Past experience shows that the burden of higher tariffs isn’t borne solely by trading partners. Importers often absorb part of the cost through lower profits, and consumers ultimately pay more for goods.”

The International Monetary Fund’s comments add to rising interest over the long-term entailments of protectionist policies, with fears that continued escalation which could erode global economic stability and boot retrieval efforts in developing economies.