The International Monetary Fund (IMF) has significantly downgraded its economic forecasts, citing the adverse effects of escalating trade tensions and tariffs imposed by the Trump administration. The IMF now projects U.S. economic growth to slow to 1.8% in 2025, down from 2.7%, noting that the U.S. and global economies will face major negative shocks if the trade war continues. The global growth forecast has been slashed to 2.8%, reflecting widespread impacts on economies, including the UK and Japan, which are expected to suffer more acutely due to these tariffs. Despite these gloomy projections, the IMF believes that a global recession is unlikely at this time, though the uncertainty created by trade policies continues to weigh heavily on forecasts and market stability.