The IMF projects the U.S.'s overall federal deficit will dip to 6.5% of gross domestic product this year, down from 7.3% in 2024 The multinational fund cited higher tariff revenues for the decline The IMF highlighted uncertainty surrounding the rollout of higher tariffs and potential revenue increases The International Monetary Fund forecasts U.

The International Monetary Fund on Tuesday slashed its growth forecasts for the United States, China and most countries, citing the impact of U.S. tariffs now at 100-year highs and warning that rising trade tensions would further slow growth.

The International Monetary Fund slashed its U.S. growth forecast from its projection earlier in the year, and also lowered its outlook for global growth, as tariffs take a toll on economic activity.

The IMF said that the global economy will grow just 2.8% this year, down from its forecast in January of 3.3%, according to its latest World Economic Outlook.