Hundreds of finance ministers, central bankers, and policymakers from around the world are meeting in Washington this week for the semi-annual meetings of the International Monetary Fund (IMF) and World Bank, with one issue dominating the agenda: tariffs.
While these Spring Meetings traditionally focus on multilateral policy coordination around global development, climate financing, and sovereign debt sustainability, this year’s discussions are expected to be overshadowed by a flurry of bilateral negotiations.
At the center of these talks is a global effort to seek relief from a sweeping series of U.S. tariffs reintroduced by President Donald Trump since his return to office in January.
Countries ranging from Japan to South Korea and several developing economies are hoping to secure exemptions or concessions from the U.S. administration, which has implemented aggressive import taxes—up to 25 per cent on key goods like steel, autos, and electronics.
These tariffs, finance leaders warn, are disrupting trade flows, darkening economic forecasts, and raising debt burdens in already fragile economies.
“The focus of these meetings in the past couple of years—on reforming multilateral development banks and improving sovereign debt architecture—will fall by the wayside,” said Nancy Lee, a senior policy fellow at the Center for Global Development and former U.S. Treasury official. “This time, it’s all about tariffs.”
According to Reuters report, central to the week’s bilateral engagements is U.S. Treasury Secretary Scott Bessent, President Trump’s chief negotiator on trade and a key figure whose stance on U.S. participation in multilateral institutions remains uncertain. His approach to tariff diplomacy and support for institutions like the IMF and World Bank is being closely watched by both allies and adversaries.
“Trade wars will dominate the week, as will the bilateral negotiations that nearly every country is trying to pursue in some way, shape or form,” said Josh Lipsky, director at the Atlantic Council’s GeoEconomics Center. “This becomes a Spring Meetings unlike any other.”
Among those seeking quick tariff deals is Japan, which has faced some of the steepest U.S. duties. Japanese Finance Minister Katsunobu Kato is expected to meet Bessent on the sidelines of the meetings to continue negotiations. South Korea’s Finance Minister Choi Sang-mok has also confirmed bilateral discussions with Bessent, aiming to delay or soften the impact of the new tariffs while exploring collaboration in energy and shipbuilding sectors.
For developing economies, the stakes are especially high. IMF Managing Director Kristalina Georgieva warned last week that the Fund’s upcoming World Economic Outlook, to be released Tuesday, will reflect “notable markdowns but not recession.” She cited “off the charts” market volatility and policy uncertainty triggered by the trade tensions as major drags on global economic momentum.
Georgieva stressed that while the world’s real economy remains resilient, worsening perceptions around trade disruptions could further dampen investor confidence and economic activity.
Some policymakers have also raised concerns about the broader implications for U.S. financial markets. The renewed trade conflict has already sparked a sell-off in U.S. Treasury securities, prompting questions about the continued status of the dollar as a global safe haven.
Adding to the uncertainty is the Trump administration’s ambiguous commitment to multilateral development institutions. The Project 2025 Republican policy platform—widely seen as influencing Trump’s policy direction—has called for the U.S. to reconsider its participation in both the IMF and World Bank.
During this week’s meetings, many delegates will seek clarity from Secretary Bessent on the administration’s intentions. “First and foremost, does the U.S. view support for MDBs as in its interest?” Lee asked.
World Bank President Ajay Banga reported “constructive” talks with the Trump administration but said it remains unclear whether the U.S. will fulfill a $4bn funding commitment to the Bank’s International Development Association, pledged under former President Biden.
Banga is also expected to elaborate on a shift in World Bank financing strategy, signaling a pivot toward a broader mix of energy investments, including nuclear and natural gas projects, aligning more closely with Trump’s energy policy priorities.
Despite the tensions, some signs of cooperation remain. Secretary Bessent traveled to Argentina last week to endorse the IMF’s $20bn loan program for the country, describing it as a preferable alternative to “rapacious” Chinese lending models. That show of support offered a rare moment of policy continuity between U.S. administrations.
Meanwhile, three former U.S. Treasury officials—Meg Lundsager, Elizabeth Shortino, and Mark Sobel—cautioned against any U.S. retreat from the IMF. In an opinion piece published in The Hill, they argued that U.S. influence at the Fund allows it to shape global economic policy at minimal cost. “If the U.S. steps back from the IMF, China wins,” they wrote.
As the week unfolds, finance leaders will continue to meet behind closed doors, negotiating trade deals, seeking tariff relief, and gauging America’s role in shaping the future of the global financial system.