IMF says dollar is likely to devalue due to increase in U.S. tariffs

Due to the increase in U.S. tariffs, there may be a medium-term prospect for devaluation of the dollar. This follows from the next report of the International Monetary Fund (IMF) on the outlook for the world economy, presented in Washington, TASS reports.

"In the medium term, the dollar could devalue in real terms if tariffs lead to a reduction in productivity in the sector (of the economy - ed.) of the United States, from which goods for trade come - compared to its trading partners," the document says.

It also expresses the view that "the correction in global demand for dollar assets has so far been orderly".

U.S. President Donald Trump announced on April 2 the introduction of tariffs on products from 185 countries and territories. Russia is absent from this list. Universal tariffs of 10% came into effect on April 5, individual tariffs - on April 9.

Trump then announced that he was suspending for 90 days additional import tariffs imposed on a number of countries and territories on the principle of reciprocity. The White House explained that the pause is associated with trade negotiations, during this period will operate "a universal tariff of 10%". At the same time, the head of the US administration raised tariffs on Chinese products to 125%. Earlier, a tariff of 20% was also imposed for allegedly insufficient efforts of the governments of Canada, China and Mexico in the fight against smuggling of fentanyl into the United States.