Trump’s tariff ‘bomb’ heavy at the world’s growth rate, IMF told why India still in a good condition

US President Donald Trump’s tariff policy will soon show its darker color. The International Monetary Fund i.e. IMF said on Wednesday, 23 April that the economic growth is going to slow down globally in the coming months, due to which the trade war started with heavy tariffs imposed on almost all trading partners of Trump. In its latest issue of its World Economic Outlook, IMF warned that the US was facing rising risk of recession. At the same time, the IMF has reduced its outlook (probability of economic development) for all G7 countries, including China, India, Brazil and South Africa.

The fund warned that if the country fails to “solve” its trade tension, it could cause further damage to their development prospects. It states, “If it is retained (trade tension), it will slow down the sudden increase and related uncertainty in tariffs will greatly slow down global development.”

“We are entering a new era because the IMF chief economist Pierre-Olivier Gaurinchas told reporters in Washington on Tuesday, because the global economic system operated for the last 80 years is being replaced (reset) … If maintained, the growing trade stress and uncertainty will slow down the global growth.”

The IMF said in its report, “For India, the Growth Outlook is relatively more stable at 6.2 percent in 2025. It is supported by personal consumption, especially in rural areas, but due to high levels of trade tension and global uncertainty, this rate is 0.3 percent lower than January 2025 Weo update.”

The IMF warning has come when all the countries are demanding an agreement to reduce the tariffs on Trump and his team. According to the White House Press Secretary Caroline Levitt, so far 18 different countries have made proposals and Trump’s business talks team is going to hold a meeting with 34 countries this week to discuss Tariff. The US President himself has hoped that a trade agreement with China could “largely” cut in tariffs, which can improve the market.