The economic uncertainty generated by incoming US president Trump’s threat of sweeping tariff increases is causing long-term interest rates to rise and exerting downward pressure on a global economy already experiencing low growth rates, the International Monetary Fund has warned.

Trump hasn’t even stepped back into the White House yet, but his usual chaos is already here. The IMF says his now-infamous tariff threats are pushing long-term interest rates higher worldwide.

The IMF has warned that jitters surrounding Donald Trump’s threat to impose trade tariffs were driving up longer-term borrowing costs and would add to pressures facing the global economy in 2025. Speaking to reporters in Washington on Friday,

IMF Managing Director Kristalina Georgieva stated that the U.S. economy was performing "quite a bit better" than anticipated, although there was significant uncertainty surrounding the trade policies of President-elect Donald Trump's administration.

US President-elect Donald Trump’s tariff threats are already driving up longer-term borrowing costs around the world, International Monetary Fund Managing Director Kristalina Georgieva said.