IMF Calls on US to Ease Trade

The International Monetary Fund (IMF) has advised the United States to engage more closely with its trading partners to reduce trade restrictions, as part of its latest review of the US economy.

The assessment covers the first year of Donald Trump’s second term, during which his administration introduced sweeping tariffs targeting both allies and rivals to narrow the trade deficit and strengthen domestic manufacturing. 

However, the IMF noted that the inconsistent application of these tariffs has disrupted supply chains and unsettled financial markets.

In its recommendations, the IMF encouraged US authorities to collaborate with other countries to tackle concerns around unfair trade practices and to pursue a coordinated rollback of trade barriers and industrial policies that create negative spillover effects across borders.

It also advised that measures such as tariffs or export controls introduced for national security reasons should be applied in a limited and targeted manner.

On the economic outlook, the IMF projected US Gross Domestic Product (GDP) growth to reach 2.6 percent in 2026, up from 2.2 percent the previous year. It stated potential upside and downside risks linked to trade policies, taxation, and labour market trends.

Despite these concerns, the IMF said the US economy showed solid performance in 2025, pointing to sustained productivity growth, even though activity was affected by a government shutdown toward the end of the year.

In its 2024 review, the fund had already raised concerns about rising trade barriers under the Joe Biden administration, urging policymakers to roll back restrictions and address rising public debt through measures such as tax reforms.