Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), urged global policymakers on Thursday to safeguard international trade as a vital engine of global economic growth despite a recent surge in tariffs imposed by the United States.
Speaking at a press conference during the IMF and World Bank annual meetings in Washington, Georgieva warned against turning inward in response to geopolitical tensions, emphasizing that trade should remain a pillar of global prosperity.
“Even with rising tariffs and fragmented global supply chains, we must not lose sight of the fact that trade has lifted millions out of poverty and fueled innovation for decades,” Georgieva said, in pointed remarks seen as a response to President Donald Trump’s renewed protectionist push.
Earlier this month, President Trump announced a new round of 100% tariffs on certain Chinese imports, further escalating trade tensions with Beijing. The IMF has previously cautioned that a prolonged trade war could reduce global GDP by as much as 1.5% over the long term.
Georgieva stressed that external surplus countries like China should pivot toward domestic demand rather than relying heavily on exports, while deficit economies such as the United States must address fiscal imbalances to restore global equilibrium.
“We need more balanced growth, built on strong domestic foundations, not just cross-border flows,” she added.
In a separate session with civil society organizations, Georgieva also addressed the disruptive rise of artificial intelligence, warning that most countries, particularly developing ones, are ill-prepared for the regulatory and ethical challenges posed by AI.
“Today, the AI revolution is dominated by advanced economies. The U.S. leads, China follows in key areas, but developing nations are being left behind,” she said.
She called on civil society and regulators to urgently push for global frameworks to manage AI's economic and societal impact, noting that the current lack of safeguards could deepen inequality and destabilize labor markets.
As the world contends with multiple overlapping crises, from debt stress to climate shocks, the IMF chief emphasized that multilateral cooperation is more important than ever.
“We must protect the principles of cooperation and openness, not retreat behind walls,” she concluded, calling on nations to resist political pressures that threaten global integration.