Headlines
IMF says it's too early to gauge impact of US foreign aid cuts, tariffs
Published by Global Banking and Finance Review
Posted on February 6, 2025
1 min readLast updated: January 26, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on February 6, 2025
1 min readLast updated: January 26, 2026
IMF is closely monitoring US foreign aid cuts and tariffs, but it's too early to assess their impact. Global responses will be crucial.
WASHINGTON (Reuters) - The International Monetary Fund on Thursday said it is closely following developments in the U.S., including moves by the Trump administration to halt foreign aid and impose tariffs on China, but it was too soon to offer clear assessments of the impact.
The global lender has repeatedly warned countries that protectionist measures, trade restrictions and increased uncertainty could dampen global growth, but IMF spokesperson Julie Kozack said the impact of already announced U.S. tariffs and other measures would depend on the responses of other countries and consumers, along with further trade developments.
Asked about proposals in the Project 2025 agenda written by some key members of U.S. President Donald Trump's administration that call for the U.S. to withdraw from the IMF, Kozack said the IMF had a long history of working with successive U.S. administrations and looked forward to continuing that work.
(Reporting by Andrea Shalal And Rodrigo Campos)
The main topic is the IMF's monitoring of US foreign aid cuts and tariffs and their potential global impact.
US tariffs could dampen global growth by increasing trade restrictions and uncertainty.
Project 2025 includes proposals for the US to withdraw from the IMF, authored by key Trump administration members.
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