Lender cuts forecasts for every major economy, with UK expected to grow by 1.1% this year, down from 1.6%

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Donald Trump’s tariffs have unleashed a “major negative shock” into the world economy, the International Monetary Fund has said, as it cut its forecasts for US, UK and global growth.

In a stark assessment of the impact of the US president’s policies, as global finance ministers prepare to meet in Washington, the IMF said: “We expect that the sharp increase on 2 April in both tariffs and uncertainty will lead to a significant slowdown in global growth in the near term.”

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Rolling coverage of the latest economic and financial news, as dollar weakens and gold soars after latest Trump salvo at Jerome Powell

• Reeves to make case for free global trade at Washington IMF talks

With a week to go, April is turning into the worst month for the US stock market since the Great Depression.

The Wall Street Journal is reporting that the Dow Jones Industrial Average is headed for its worst April performance since 1932, according to Dow Jones Market Data.

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As temperatures rise and countries back off their decarbonization efforts, we must confront a reality central banks can’t correct

Inflation is, at base, a tax on consumption – and it hits the poor the hardest, since they consume more of their incomes and the rich consume less.

That’s one reason for concern over Donald Trump’s tariffs, which will disproportionately affect the poor. When the 90-day pause on the tariffs expires, it is reasonable to expect prices to rise, and by a lot.

Mark Blyth is a political economist and professor at Brown University. Nicolò Fraccaroli is a visiting scholar at Brown University

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