Escalating Trade Tensions Disrupt the Global Economy and Force Companies to Recalculate

Amid intensifying global trade disputes, the IMF warns of slowing growth,
while major companies like Ford take decisive actions to mitigate losses.

Content:

Georgieva

Ford

Georgieva

Trade Tensions Will Lower Global Growth Forecasts Without Causing a Full Recession

Kristalina Georgieva, Managing Director of the International Monetary Fund,
warned that global trade tensions and radical shifts in the trade system will lead the IMF to lower its global economic growth forecasts.
However, she ruled out the likelihood of an imminent global economic recession.

In her remarks on Thursday, Georgieva explained that the world is going through a delicate phase of structural changes in the trade system amid escalating U.S. tariffs and retaliatory responses from China and the European Union.
This has created an unprecedented level of uncertainty in trade policies and led to sharp fluctuations in financial markets.

She added that these trade shifts are imposing heavy economic costs,
and the IMF will issue downward revisions to its growth forecasts in upcoming reports.
However, she emphasized that these conditions do not yet amount to a global recession,
despite the expected impact on inflation levels in some countries.

Georgieva also pointed out that rising uncertainty increases the risk of financial instability,
highlighting movements in the U.S. bond yield curve as a concerning indicator. She said,
“If financial conditions deteriorate, everyone will be affected.”

Ford

It Halts Vehicle Shipments to China Due to High Tariffs

Ford Motor Company announced it has stopped shipping its vehicles from the United States to China after feeling the effects of retaliatory tariffs imposed by Beijing, which raised import taxes on certain vehicles to 150%,
directly affecting the competitiveness of American products in the Chinese market.

In an official statement, the company said it has adjusted its exports to China “in line with current tariff conditions.”
As a result, Ford has halted exports of several popular models such as the F-150 Raptor,
Mustang, Bronco, and Lincoln Navigator, which are manufactured in Michigan and Kentucky.

This decision comes at a time when U.S. automakers are facing increasing pressure due to tariffs imposed by President Donald Trump, which were later reinstated, raising concerns about their impact on company profits and suppliers alike.

Despite the halt in full vehicle exports, Ford will continue to export engines and transmissions manufactured in the United States to China.
The company also clarified that its local production in China, such as the Lincoln Nautilus, will continue unaffected by these tariffs.

It’s worth noting that Ford is considered one of the most adaptable companies to tariffs,
with approximately 80% of its vehicles manufactured within the United States.

Escalating Trade Tensions Disrupt the Global Economy and Force Companies to Recalculate

Escalating Trade Tensions Disrupt the Global Economy

Related Topics