IMF Managing Director Kristalina Georgieva has urged nations not to impose tariffs, following US President Donald Trump’s latest measures
Speaking at a press briefing on Thursday, Georgieva said, “the largest economy in the world has chosen to use tariffs as an instrument in relations with partners.”
The IMF chief urged nations to adhere to “trade on the most favored nation rule,” adding that imposing tariffs “does not work well” unless the nation has a “very large” and “relatively closed” economy. She warned that nations which place tariffs on others will see prices rise domestically.
“If there is a flare-up of trade tensions, that would of course have a negative impact,” Georgieva said, noting that the US and China are engaged in a trade war. “This is why we are saying: Please… do not do that. It is not a healthy action,” she added.
Trump has introduced what he calls ‘reciprocal tariffs’ on dozens of nations he accused of “ripping off” America through unfair trade practices. He recently imposed 50% tariffs on most imports from India and Brazil and has threatened China with an additional 100% starting next month.
The US president has argued that some tariffs are meant to pressure India to halt its purchases of Russian oil and support sanctions on Moscow. On Thursday, however, the Indian Foreign Ministry denied Trump’s claim that Prime Minister Narendra Modi assured him India would stop buying Russian oil.
You can share this story on social media:
Read the full article here