The International Monetary Fund (IMF) has revised its growth projection for the U.S. economy in 2025, now expecting a modest 1.8% growth, down from a previous estimate of 2.7%. This adjustment stems from escalating trade tensions and newly imposed tariffs by the Trump administration, with inflation expectations also rising to around 3%.
These changes follow the implementation of the controversial “Liberation Day” tariffs, which introduced a baseline 10% tariff on imports from most countries, with even higher rates for nations accused of unfair trade practices. According to the IMF’s Research Director, Pierre-Olivier Gourinchas, the forecast decline is largely due to disruptions in the global economic order caused by these tariffs and the retaliatory actions that followed.
Although the IMF stresses that global growth remains above recession levels, it warns that the unpredictability of trade policies and ongoing disputes pose serious challenges to economic stability.
