Global economy to be hit hard by Trump’s tariffs, IMF warns

“We’re entering a new era as the global economic system that has operated for the last 80 years is being reset,” said Pierre-Olivier Gourinchas, IMF’s chief economist, in a news conference.

“Beyond the abrupt increase in tariffs, the surge in policy uncertainty is a major driver of the economic outlook,” he added. “If sustained, the increase in trade tensions and uncertainty will slow global growth significantly.”