IMF-World Bank Spring Meetings End With Economic Gloom, Few Answers on Tariffs

Washington — Global finance leaders wrapped up the IMF and World Bank Spring Meetings in Washington this week with little progress on tariff relief and growing concerns about mounting economic risks.

Despite hopes for clarity on U.S. trade policy under President Donald Trump’s administration, most officials left the meetings with more uncertainty than answers. The gathering, marked by closed-door sessions and inconclusive negotiations, highlighted the deep unease surrounding escalating tariffs and their potential long-term impact on the global economy.

Throughout the week, finance ministers and trade officials sought to engage with U.S. Treasury Secretary Scott Bessent and other senior American policymakers. However, meetings were limited, and those who managed to secure talks were urged to "be patient" — even as a 90-day pause on Trump’s steepest tariffs nears expiration.

“We are not negotiating; we are just presenting, discussing the economy,” said Polish Finance Minister Andrzej Domanski, emphasizing that the ongoing uncertainty is harmful not only to Europe and the U.S. but to the entire global economy.

Currently, U.S. tariffs stand at 25% on vehicle, steel, and aluminum imports, and 10% on most other goods. Despite warnings that such measures could severely damage both U.S. and global economies, U.S. officials remain optimistic about long-term gains, brushing off concerns about immediate pain.

Talks with Japan and South Korea showed some movement but yielded no concrete outcomes. Currency policies, particularly concerns about weakening foreign currencies against the dollar, are expected to remain key points in future discussions.

A Cloud of Uncertainty

While the International Monetary Fund trimmed its global growth forecasts in its latest World Economic Outlook, it stopped short of predicting a recession, even for heavily exposed economies like China — now facing U.S. tariffs of up to 145% on certain goods.

IMF Managing Director Kristalina Georgieva acknowledged growing anxieties among member countries but expressed cautious optimism.

"Uncertainty is really bad for business," Georgieva said. "The sooner this cloud over our heads is lifted, the better for profit, for growth, for the world economy."

Privately, however, many finance officials shared darker forecasts. Several suggested that the risk of a global recession was higher than the IMF’s estimated 37%, reflecting private sector concerns.

Rising Debt Risks and Global Tensions

The week’s discussions also touched on growing debt vulnerabilities, particularly among developing countries.
Eric LeCompte, executive director of Jubilee USA Network, described the meetings as a "do-nothing" week, overshadowed by tariff debates and lacking substantial progress on pressing debt issues.

"For many developing countries, especially in the Global South, there is a real sense of despair," said Reza Baqir, former Pakistan central bank governor, now with Alvarez & Marsal.

World Bank Chief Economist Indermit Gill warned that rising tariffs have slowed trade and foreign direct investment, critical for emerging market growth. Officials urged countries to lower their own tariffs to offset these impacts.

U.S. Commitment to Bretton Woods Institutions

In a rare point of relief, Treasury Secretary Bessent reaffirmed U.S. support for the IMF and World Bank, distancing himself from calls within the Republican "Project 2025" platform to withdraw.
While criticizing the institutions’ expansion into climate and gender issues, Bessent emphasized the need to refocus on core economic stability and development missions.

Bessent’s early remarks hinting that triple-digit tariffs on Chinese goods were "unsustainable" had briefly buoyed hopes of an easing in trade tensions. However, Chinese officials later denied that meaningful negotiations were underway, further clouding the outlook.

Dimming Confidence in U.S. Economic Leadership

Beyond tariffs, global confidence in U.S. economic leadership emerged as a growing concern.
Josh Lipsky, a senior director at the Atlantic Council’s GeoEconomics Center and former IMF adviser, said trust in U.S. policies — critical to the dollar’s reserve currency status — is eroding amid recent selloffs in U.S. Treasury and dollar-based assets.

"The broad picture, when you step back, is very concerning," Lipsky warned.

Unless trust is restored, trading partners may increasingly explore alternatives to the dollar, posing long-term challenges for U.S. economic dominance.

As finance chiefs depart Washington, many do so bracing for tougher times ahead — with no easy solutions in sight.