International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated on Thursday that while both the United States and China have legitimate trade concerns, the two largest global economies must work towards reducing uncertainty and establishing a more equitable, rules-based trading system.
Speaking at an event in Washington ahead of the upcoming IMF and World Bank spring meetings, Georgieva also welcomed India’s move to lower trade barriers. She expressed optimism that ongoing negotiations—some stemming from former U.S. President Donald Trump’s tariff policies—could result in further reductions in tariffs globally.
IMF says US-China tariff war creating uncertainty in global trade
While Georgieva avoided directly criticizing Trump’s aggressive tariff strategies, she noted that rising tariffs and non-tariff barriers were contributing to growing skepticism about the multilateral trading system.
“This sense of unfairness in certain regions supports the narrative: ‘We follow the rules, while others exploit the system without consequences,’” she said. “Trade imbalances continue to fuel tensions.”
She acknowledged U.S. concerns over China’s intellectual property policies and non-tariff practices, while noting that China seeks more constructive engagement with the U.S. to strengthen economic stability for both countries.
“We hope to see a decrease in uncertainty. That’s difficult to achieve if the world’s two largest economies are still trying to find their balance,” Georgieva said. “From the global economy’s perspective, it is crucial that this process results in a fairer, more rules-based trading framework.”
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IMF chief backs India for it’s stance on tariffs
The IMF chief also remarked on India’s initial hesitation to reduce tariffs, noting that the country has now begun taking steps in that direction—something she believes will benefit its economic growth.
Georgieva further suggested that the European Union might also see a reduction in trade barriers, potentially paving the way for more bilateral and plurilateral trade agreements.
“In this moment, we are seeing more bilateral discussions,” she said. “But I expect these conversations to lead to tangible action—reducing and possibly eliminating trade barriers—which could ultimately benefit the global economy.”
