Trump tariffs risk driving public debt to postwar high, says IMF

The IMF warns that U.S. President Trump’s tariff policies could lead to a global debt-to-GDP ratio rising to 117% by 2027, the highest since World War II. Vítor Gaspar noted that uncertainties in trade and finance are greater than previously projected, pushing countries representing 75% of global GDP to increase their debt burdens. He commended Germany’s plans to ease its debt brake for public investment and acknowledged France’s positive budget developments, hinting at an urgent need for countries to stabilize their fiscal policies amidst escalating trade tensions.