According to the IMF’s Global Financial Stability Report released on April 22, 2025, former U.S. President Donald Trump’s unpredictable tariff policies have “significantly” increased global financial stability risks. The report highlights that Trump’s trade decisions — especially the back-and-forth nature of tariff announcements — have intensified global policy uncertainty, worsened by China’s retaliatory actions.
Key Risks Identified by the IMF:
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Overvalued equity and corporate debt markets
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Highly leveraged financial institutions, including hedge funds
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Volatility in sovereign bond markets, particularly in high-debt countries
IMF Financial Counsellor Tobias Adrian warned that tightening global financial conditions disproportionately affect vulnerable nations, including emerging markets already facing the highest real financing costs in a decade.
The report underscores the ripple effect of U.S. bond market instability on global borrowing costs, further straining economies already struggling with debt.
Source: Jamaica Observer
