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President Trump announced his latest tariffs at a Rose Garden event at the White House in Washington, D.C., on April 2. The International Monetary Fund cut its forecasts for the global economy this year, citing the risks from an all-out trade war. Chip Somodevilla/Getty Images hide caption
toggle caption Chip Somodevilla/Getty ImagesThe International Monetary Fund warned on Tuesday that the global economy could be hit hard as President Trump's sweeping tariffs threaten to spark an all-out trade war.
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The IMF predicted the global economy would grow 2.8% this year, down from 3.3% in 2025. Back in January, the multilateral organization had predicted global growth would expand at the same rate as last year.
At the same time, the IMF slashed its forecast for U.S. growth to 1.8% this year, down from the 2.8% it had predicted in January.
But the IMF also recognized just how unpredictable things had become for the global economy since Trump unveiled a number of tariffs this year including on steel and aluminum imports. Although he has paused many of them, the U.S. has still imposed a 10% tariff on all imports. Meanwhile, he has slapped an additional 145% tariff on China so far on his second term.