Tariffs are rising sharply in 2025, with the US rates jumping to 13.3%—the highest since 1939—fueling global uncertainty and triggering a projected $2 trillion hit to global GDP by 2027.

The International Monetary Fund, in its world economic outlook released on Tuesday, projects 3 percent global growth this year. That is higher than the 2.8 percent it forecast after Mr. Trump announced his “Liberation Day” tariffs in April, while down from the 3.3 percent it predicted in 2024.

The International Monetary Fund (IMF) has predicted stronger global economic growth than it forecast in April due to some US tariffs on goods being softened. It predicted growth of 3% in 2025 and 3.1% in 2026,