Mohamed Maait, the Executive Director of the Arab Group at the International Monetary Fund (IMF).
According to Cairo24, Maait stated that while the full effects of the tariffs are still unfolding, early signs of impact are already visible. These include significant declines in global financial markets, a drop in oil prices, and a decrease in the value of the US dollar against a basket of major currencies.
Maait also pointed to warnings from global banks, which predict a 60 percent chance of a recession, particularly in the US. On Wednesday, US President Donald Trump imposed sweeping tariffs on imports from 180 countries, including Egypt and 18 other Arab nations.
The new tariffs, ranging from 10 to 49 percent, took effect on 5 April.
The former Egyptian finance minister noted that the impact of the tariffs would be felt swiftly, with expectations of rising inflation, slower interest rate cuts, and potentially higher financing costs in the near future.
Additionally, Maait highlighted the risk of increased goods costs, slower growth rates, higher unemployment, and a decline in global trade volume by more than one percent.
He also noted the potential for higher goods costs, lower growth rates, higher unemployment, and a decline in global trade volume by more than one percent.
These factors could undermine confidence in the global economic system and increase uncertainty.
Maait further emphasized that the short- and medium-term economic situation will largely depend on how other countries respond to the US trade measures and how the US itself reacts to those responses. He concluded that the full impact of the tariffs would become clearer in the coming days.
Kristalina Georgieva, the IMF's managing director, expressed similar concerns on Friday via statement.
"We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth," Georgieva wrote. "It is important to avoid steps that could further harm the world economy. We appeal to the US and its trading partners to work constructively to resolve trade tensions and reduce uncertainty."
Georgieva noted that the World Economic Outlook, set to be published during the IMF/World Bank Spring Meetings beginning on 21 April, will include the IMF’s full assessment.
In parallel, US Federal Reserve Chairman Jerome Powell warned on Friday that the larger-than-expected tariffs could fuel global inflation and slow economic growth worldwide.
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