Tariff crisis

Reactions to tariffs

IMF lowers growth forecast – “new economic era”

The IMF lowers its forecast for global growth in the coming years and warns of a new economic era, several media outlets report. Due to the uncertain situation, the IMF is not reporting its usual forecast but is publishing a so-called reference forecast with possible scenarios, TT reports.

In that forecast, growth falls from last year’s 3.3 percent to 2.8 percent in 2025 and 3.0 percent in 2026.

Trump’s tariff policy
Report: Bessent expects escalation in “unsustainable” tariff war against China

The stalemate in the trade war against China is unsustainable. This is what US Treasury Secretary Scott Bessent said at a private investor meeting hosted by JPMorgan on Tuesday, according to sources to Bloomberg. Bessent is also said to expect the conflict to escalate in the “very near future,” according to a source to CNBC.

No negotiations have been initiated between the superpowers, but a trade agreement is possible, the finance minister says, according to sources who attended the meeting.

According to sources who spoke to Reuters, Bessent also says that a rebalancing towards consumption in China and manufacturing in the US would be a “big win” in two to three years.

The rise on Wall Street is further strengthened after the statement and at 6:30 p.m. the leading indices are up around 3 percent.

White House: Has received 18 proposals for trade agreements – the ball is rolling with China

The US has received 18 proposals for trade agreements and will meet with representatives of 34 countries this week, says White House press secretary Karoline Leavitt. In total, about 100 countries want to sign an agreement with the US, she says during a press conference.

She also reads a statement from Donald Trump, in which the president claims that talks on a potential agreement with China are “going very well”.

– The president and the administration are preparing for a deal with China. We feel that everyone involved wants to see a deal and that the ball is rolling, says Leavitt.

According to information to several media outlets, Treasury Secretary Scott Bessent said earlier in the evening that the United States is not yet holding any talks with China, but that he expects a de-escalation of the conflict soon.

In the United States, the IMF sees an increased risk of recession as Donald Trump's trade war causes the global economy to slow down significantly, writes the Financial Times. For the United States, the IMF is lowering its growth forecast by a full percentage point.