IMF Warning: Tariffs Have 'Reset' the World Economy

President Trump won't be a fan of a new warning issued Tuesday by the International Monetary Fund. The organization predicted that Trump's tariffs will slow economic growth around the world.

• In its updated World Economic Outlook, the IMF revised global economic growth down to 2.8% for the current year from an earlier estimate of 3.3%, reports the AP. It also predicted global growth of 3% in 2026, down from 3.3%.

• The US economy in particular is expected to grow by only 1.8% this year, a decline from the previously forecast 2.7%. The IMF has also raised the odds of a US recession from 25% to 37%.
• "The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era," wrote Pierre-Olivier Gourinchas, the IMF's economic counselor, per the Wall Street Journal.
• Mexico is expected to get hit the hardest, with its economy now expected to contract by 0.3% this year, the Journal notes. Previously, it was on track to grow by 1.4%. The IMF cut growth forecasts for China to 4% this year, down from 4.6%.
• "It's quite significant and it's hitting all the regions of the world," Gourinchas tells Reuters in an interview. "We're seeing lower growth in the US, lower growth in the euro area, lower growth in China, lower growth in other parts of the world."

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