The International Monetary Fund’s findings covered the first year of Donald Trump’s second presidency, in which he unleashed wide-ranging tariffs on allies and competitors alike as he sought to shrink the US trade deficit and boost domestic manufacturing.

But his on-again, off-again tariffs have roiled supply chains and financial markets.

The IMF said Wednesday that Washington should work constructively with partners “to address concerns over unfair trade practices and agree on a coordinated reduction in trade restrictions and industrial policy distortions that have negative cross-border effects.”

“Where trade and investment measures (including tariffs and export controls) are put in place for national security reasons, such policies should be applied narrowly,” it urged.

Overall, the fund projects US GDP growth to come in at 2.6% in 2026, picking up from 2.2% last year.

It also flagged “two-sided risks from tariffs, taxes and labour market dynamics.”

Broadly speaking, the IMF said the US economy “performed well in 2025” in the concluding statement of its “Article IV” consultation.

It noted the country’s “continued strong productivity growth even though the government shutdown took a bite out of activity in the fourth quarter.”

The IMF last issued US-related policy suggestions in 2024.

At that time, it raised concern over growing trade restrictions under then-president Joe Biden’s administration, urging officials to unwind obstacles to free trade.

The fund in 2024 also urged for a reversal in the rise in public debt, noting that officials could raise taxes, among other reforms.