The International Monetary Fund (IMF) has warned that the united states president Donald Trump making by imposing tariffs on countries around the world may triggers a global financial meltdown.
The IMF said the geopolitical risk was at its highest level in several decades, warning that if such continued may led to potential disruption of the financial system.
It said the heightened risk “raises concerns” about further tensions and “the potential implications for macro-financial stability”.
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The IMF’s verdict comes after a turbulent few weeks for financial markets as Mr Trump’s chaotic programme of tariffs sent global stocks see-sawing and thrust bond markets into disarray.
The IMF warned that investors struggle to properly price threats from geopolitical events such as trade wars because of of the uncertainty, raising the prospects of “sharp market reactions.”
According to recent analyses, Trump’s trade policies, including tariffs imposed on various countries, have raised concerns about a potential global recession.
The IMF has warned that such policies could lead to a significant slowdown in global economic growth, potentially affecting nations worldwide.
Some economists argue that Trump’s tariffs are more likely to harm the US economy and global trade rather than achieving their intended goals.