International Monetary Fund warns of damage new tariffs impose on US GDP growth

The International Monetary Fund (IMF) expects a slowdown in US gross domestic product (GDP) growth this year as a result of new import duties. 

However, according to analysts of the organization, the probability of recession in the foreseeable future is still low.

According to Director of the Communications Department of the IMF Julie Kozack, recent changes in economic policy and current US data indicate a decline in business activity after a period of strong growth in 2024. Nevertheless, a recession is not considered to be part of the basic scenario.

Since taking office, US President Donald Trump has already imposed a number of import duties. On Wednesday, he announced a 25% tariff on all cars manufactured abroad. He also warned of possible further increases in duties against the European Union and Canada if their cooperation hurts the US economy.

Final data released Thursday showed the US economy grew 2.4% in the fourth quarter, exceeding the projected 2.3%. However, the pace of GDP slowed markedly from the third quarter, when the economy expanded by 3.1%.