IMF urges US to work with partners to ease trade restrictions

On Wednesday, February 25, the IMF urged the United States to collaborate with its trading partners to ease trade restrictions. This call came as part of a review of the US economy. The International Monetary Fund's report focused on the first year of Donald Trump’s second term as president. During this time, Trump imposed a variety of tariffs on both allies and competitors in an effort to reduce the US trade deficit and enhance domestic manufacturing. However, these inconsistent tariffs have created disruptions in supply chains and financial markets. The IMF highlighted that the Trump administration also aimed to lessen dependence on unauthorized immigrant workers while decreasing the federal government's involvement in the economy. Nevertheless, the IMF emphasized that Washington should work positively with its partners to address concerns about unfair trade practices. It recommended a coordinated effort to reduce trade restrictions and fix industrial policy issues that negatively impact cross-border trade. The IMF stated that any trade and investment measures, like tariffs and export controls, that are implemented for national security should be applied carefully. Kristalina Georgieva, the IMF chief, informed reporters that the report was completed before the Supreme Court annulled many of Trump’s tariffs last Friday, and she mentioned that the IMF would consider this new development. Following the ruling, Trump announced a different law to impose a new 10 percent global tariff, which he may increase to 15 percent. Before the report was published, Georgieva met with Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell.