World Bank and IMF to conclude meetings in Washington, D.C.
Over the past week, the World Bank and the IMF have convened in Washington to assess the impact of the Trump administration’s tariffs.
Earlier this month, the Trump administration announced a 90-day pause on its across-the-board tariffs, spurring trade partners to pursue trade deals. This week, global financial leaders have convened in multilateral policy-making meetings and bilateral negotiations to address tariff policies and negotiate trade deals. Since the IMF has slashed its global growth forecasts due to the tariffs, the agenda has shifted its focus to navigating and mitigating trade wars, with climate change and Ukraine’s financial support deferred. Meanwhile, delegations from US trade partners, namely Japan and South Korea, have been bilaterally negotiating deals with US Treasury Secretary Scott Bessent.
While Bessent has affirmed US commitment to the World Bank and IMF, the Trump administration will likely seek to reform the Bretton Woods system by addressing its ‘mission creep.’ Since the multilaterals’ leadership has changed its agenda to align with Trump’s priorities, the World Bank and IMF will likely shift their policies away from climate change and social issues. Regarding tariffs, the US and Japan are increasingly likely to reach a deal after moving to an interim agreement this week. Nonetheless, the trade landscape remains unpredictable, as Trump maintains his ambiguity on negotiations with China. As the US intends to reshape the global financial system, the Trump administration will likely continue to be in conversation with leaders from the
World Bank and the IMF. As it stands, while the Trump administration still holds confidence in reforming these Bretton Woods institutions, the US will not relinquish its leadership in financial multilateralism.
