The head of the International Monetary Fund said Thursday that President Trump’s tariffs will cause economies around the globe this year to experience higher inflation and slower growth — but not a recession.

The International Monetary Fund is warning countries about an impending global recession, citing US President Donald Trump’s tariff strategy and geopolitical indifferences as factors that could destabilize global financial markets.

These tariff measures, which we are still assessing for their macroeconomic impact, clearly represent a significant risk to the global outlook at a time of slow economic growth,” she said. Georgieva stressed that it’s critical now to avoid moves that could inflict further harm on the world economy.