The International Monetary Fund's Kristalina Georgieva stated that while President Trump's tariffs will impact global growth, a recession can be avoided. The IMF expects short-term disruptions and rising inflation but stresses that smart responses to trade tensions are crucial for long-term stability.

The president has been announcing tariffs for months, but his latest moves are opening salvos in potentially drawn-out tit-for-tats with dozens of countries.

Rising trade tensions and sweeping shifts in the global trading system will trigger downward revisions of the International Monetary Fund's economic forecasts but no global recession is expected, IMF Managing Director Kristalina Georgieva said on Thursday.