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GeneralMediumUpdated•Originally published 26 June 2026•Updated 27 June 2026•
1 min read

IMF chief economist warns tit-for-tat trade war is 'self-defeating', threatens global economy

Portrait of Kristalina Georgieva with IMF logo, shipping containers on a bridge, and a cracked globe.

Key Facts

1IMF chief economist Pierre-Olivier Gourinchas warned that tit-for-tat trade warfare threatens the global economy.
2Gourinchas said attempts to gain small advantages will be 'self-defeating'.

The warning comes as trade tensions escalate between the US, China and the EU. In an interview with the Financial Times, the IMF's chief economist said attempts to gain small advantages through retaliatory measures would be 'self-defeating', warning that tit-for-tat trade warfare threatens the global economy.

The warning comes as recent economic data signal weakness across major economies. According to market data, the services PMI stood at 47.4 in France, 46.8 in Germany, and 48.7 in the UK, all below the 50 threshold indicating contraction. Meanwhile, Canada's annual inflation rate rose to 3.2% in June, above forecasts.

Investors are closely watching trade developments and upcoming economic data. Speeches by ECB President Lagarde, Fed Governor Waller, and BoC Governor Macklem this week may offer further policy guidance. Final June PMI readings also remain in focus.