IMF Urges US to Ease Trade Restrictions

ISLAMABAD: (Web Desk) -The International Monetary Fund has urged the United States to engage constructively with its trading partners and work toward easing trade restrictions that are disrupting global markets. The recommendation came as part of the IMF’s annual review of the world’s largest economy.

The assessment covered the first year of Donald Trump’s second term, during which sweeping tariffs were imposed on both allies and rivals in an effort to reduce the US trade deficit and expand domestic manufacturing. However, the IMF noted that frequent changes in tariff policy have unsettled supply chains and heightened market volatility.

Donald Trump orders Pentagon to declassify UFO and alien documents

The Fund emphasized that while concerns over unfair trade practices should be addressed, such measures must be coordinated internationally to prevent negative spillover effects. It also advised that tariffs and export controls imposed for national security reasons should be limited in scope and carefully targeted.

IMF Managing Director Kristalina Georgieva said the report was finalized before recent US court rulings struck down several tariffs. She acknowledged that Washington has since introduced a new global tariff under different legal authority, developments the Fund will now evaluate.

The IMF also expressed concern over the rising US public debt, warning that although the risk of sovereign stress remains low, the growing debt-to-GDP ratio could pose longer-term risks to both the American and global economies. Despite these challenges, US economic growth is projected at 2.6 percent in 2026, though uncertainty surrounding trade policy could weigh on future activity.