IMF Managing Director and Business Leaders View Trump’s Tariffs

At an international conference on May 5, IMF Managing Director Kristalina Georgieva said that the tariff policy of the Trump administration will change the traditional international trade system, and the transition to a new system is accompanied by uncertainty and “far-reaching impact”. The assessment of tariff policies became the most concerned topic of this conference, and senior executives of the US financial industry discussed it.

Georgieva attended the Milken Institute Global Conference in Los Angeles, and she said: “We are moving from the predictable trade system that existed in the past to a new equilibrium state. The transition process is extremely uncertain.” In April, the IMF lowered its global economic growth forecast for 2025 by 0.5 percentage points from its January forecast to 2.8%.

U.S. Treasury Secretary Benson, who delivered a keynote speech at the conference, said that the goal of the economic policies proposed by the Trump administration, including tariffs, is to “make the United States an attractive investment destination.” He also quoted the words of Warren Buffett, a famous investor who announced his retirement last weekend, calling for “not betting on the United States to lose.”

Senior executives of large US banks and US trust companies participating in the meeting explained the concerns of many companies about tariffs. Jane Fraser, CEO of Citigroup, said that client companies “bring forward some of their spending and postpone investment decisions. They are still waiting and watching.” Jane Fraser also said: “Most clients believe that if the tariff rate is 10%, it is bearable, but if it is 25%, it is unbearable.” The United States has implemented a unified 10% reciprocal tariff on many countries and regions, and the additional part on this basis has been temporarily stopped except for China. Henry Kravis, co-founder of KKR, a large American investment company, said that business operators in recent conversations have “regarded tariffs as the top priority and are considering how to deal with them.” George Roberts, co-founder of KKR, who spoke with him, said that because the US government has shown a concessionary attitude in some areas, “an agreement will be reached” in the separate bilateral trade negotiations, and he is optimistic.