IMF Members See World at ‘Pivotal Juncture’ Amid Trade Wars

The world economy is at a “pivotal juncture” as trade tensions flare, members of the International Monetary Fund said in a statement after a week of discussions dominated by US President Donald Trump’s trade war, Bloomberg reported.

The “Chair’s Statement” of the International Monetary and Financial Committee, the IMF’s top advisory body, also “welcomed the ongoing efforts to end wars and conflicts.”

“The world economy is at a pivotal juncture,” said the communique prepared by the chair, Saudi Arabia’s Finance Minister Mohammed Al-Jadaan.

“Following several years of rising concerns over trade, trade tensions have abruptly soared, fueling elevated uncertainty, market volatility, and risks to growth and financial stability,” it said.

The statement reflects the shift by the US, its largest member, toward trade disputes. Just six months ago the same panel’s statement focused on an expected soft landing for the global economy after the shocks of Covid-19 and Russia’s invasion of Ukraine.

The statement added IMF members reaffirmed “our commitment to the institution and look forward to discussing further ways to ensure the Fund remains agile and focused.”

After doubts about US commitment to the Fund and World Bank, US Treasury Secretary Scott Bessent this week gave conditional support to the institutions while calling for a course correction.

One point of disagreement among drafters was a US push to include stronger language around trade “imbalances,” according to people familiar with the situation, referring to the term Bessent and other US officials often use to describe the US-China trade relationship that they see as damaging American interests.

The Treasury Department didn’t immediately respond to a request for comment.

The IMFC also pushed back its deadline for the executive board to develop guidance for the next round of quota reforms, to April 2026 from June 2025. Such a move could redistribute voting rights among members, a long-time demand by several developing countries whose board vote share doesn’t reflect their current share of the global economy, such as China, Brazil and India.

Several attendees at the meeting disagreed with moving the date, according to one person familiar with the situation, who cited it as another obstacle to reaching an consensus.