The International Monetary Fund (IMF) said that if the tariffs imposed by the US on Mexico and Canada are maintained, this will have a significant negative impact on the two US neighbors due to their close economic ties with Washington.
IMF spokeswoman Julie Kozack said the US tariffs on Mexico, Canada and China, and their retaliatory measures, were significant developments for the global economy. The IMF will release a more comprehensive assessment of the issue at the IMF and World Bank Spring Meetings in Washington in April.
The IMF official also said that increased volatility in financial markets reflects global uncertainty and it is important to assess whether these trends are short-term or long-term. Ms. Kozack said that "prolonged periods of uncertainty" could make both households and businesses hesitant in their consumption and investment decisions.
The IMF is closely monitoring the Trump administration’s moves to halt foreign aid and impose tariffs on the countries mentioned above. The IMF has repeatedly warned that protectionist measures, trade restrictions and increased uncertainty could slow global growth.