• The IMF has cut its global growth forecast to 2.8% for 2025, down from 3.3%.
• U.S. GDP growth is projected at 1.8%, a significant drop from earlier estimates.
• Higher tariffs and ongoing trade tensions threaten to escalate global economic instability.
• Countries are urged to stabilize trade policies to mitigate risks.
• The U.S. is experiencing the most significant revision among advanced economies.

The International Monetary Fund (IMF) has sharply downgraded its global growth forecast to 2.8% for 2025, revising it down by 0.5 percentage points from previous estimates. The downgrade follows an increase in uncertainty due to President Donald Trump's tariffs, which are now at levels not seen in a century. The IMF's chief economist, Pierre-Olivier Gourinchas, stated that the global economy is "entering a new era" as these tariffs disrupt established trade systems, leading to increased risks and unpredictability, particularly in major economies such as the U.S. and China, according to Bangkok Post, Los Angeles Times, and Newsweek.

The U.S. economy is projected to grow by only 1.8% this year, down from estimates of 2.7% in January. This has caused increased apprehension regarding a potential recession, with the probability now estimated at 37%, compared to 25% previously. This slowdown is attributed to ongoing tariff disputes and the uncertainty they breed, affecting consumer confidence and investment, as reported by CBS News, New York Times, and Reuters.

As tariffs impact trade relations, countries are experiencing shifts in supply chains, requiring adjustments to avoid further economic fallout. The IMF has emphasized the need for international cooperation and policy predictability, warning that failure to stabilize trade could lead to deeper economic fragmentation and heightened risks of financial instability, according to Newsweek, TRT Global, and Reuters.

The implications of Trump's tariffs are far-reaching; the IMF indicates that economies that are closely tied to U.S. trade are facing reduced growth estimates, including for China, which is forecasted to grow 4% this year, down from earlier projections. As nations react with their own tariffs, this tit-for-tat approach exacerbates global economic uncertainty, leading to an ongoing cycle of retaliatory measures, according to BBC, India Times, and Africa News.

Ultimately, the IMF's latest reports call for governments to fortify dialogue, stabilize trade frameworks, and prepare for the potential long-term impact of ongoing economic disruptions shaped by tariff wars and shifting global dynamics, as highlighted by Bangkok Post, Japan Times, and TRT Global.