WASHINGTON: Global finance leaders came to Washington this past week seeking clarity on what it would take to get some relief from President Donald Trump’s multi-layered tariff assault and on just how much pain it will bring to the world economy.
Most headed home with more questions than answers.

Many participants in the International Monetary Fund and World Bank Spring Meetings had a sense that Trump’s administration was still conflicted in its demands from trading partners hit with his sweeping tariffs. During the whirlwind week, many finance and trade ministers sought to meet with US Treasury Secretary Scott Bessent and other key Trump administration officials, to no avail. Those that did were often told to be patient — even as the clock steadily ticks down on the 90-day pause Trump had granted on the steepest levies.

Indeed, not a single deal was finalized over the course of the week despite the Trump administration touting the receipt of 18 written proposals and a full slate of negotiations.

“We are not negotiating. We are just presenting, discussing the economy,” said Polish Finance Minister Andrzej Domanski. He added that he stressed “how this uncertainty is bad for Europe, for the US I mean, it’s actually bad for everyone.”

Warnings that the tariffs — 25 percent on all US imports of vehicles, steel and aluminum and currently 10 percent for most everything else — would cause painful damage to the US and other major economies went largely unheeded by US officials.

“We know that they think — that it won’t be that bad,” Domanski said. “They think it’s a short-term pain, long-term gain. And I’m afraid that we’ll have short-term pain, long-term pain.” The Trump administration’s most substantial trade negotiations during the week were with Japan and South Korea, but the results were inconclusive as Bessent cited “productive” talks with both countries. Specific currency targets for the Japanese yen were not discussed, but both countries’ currency policies are expected to be part of future talks as the US sees currency weakness against the dollar as a nontariff barrier to American exports. The IMF took a slightly more optimistic view of the economic fallout from the highest US tariffs in more than a century, slashing growth forecasts for most countries in its World Economic Outlook but stopping far short of predicting recessions — even for the US and export-dependent China, which now faces US tariffs of 145 percent on many goods.

IMF Managing Director Kristalina Georgieva acknowledged that member countries were anxious about the uncertainty shock to a global economy buffeted by pandemic, inflation and wars but held out hope that trade negotiations would ease the tariff strains.

“We recognize that there is work under way to resolve trade disputes and reduce uncertainty,” Georgieva told reporters. “Uncertainty is really bad for business, so the sooner there is this cloud that is hanging over our heads is lifted, the better for profit, for growth, for the world economy.” Several finance officials told Reuters that odds of recession were higher than the IMF’s 37 percent chance, citing private sector forecasts.

DEBT RISKS RISE

Eric LeCompte, executive director of Jubilee USA Network, a faith-based nonprofit group advocating debt relief, said that the IMF’s forecasts were clearly aimed at preventing market panic, even as officials in private meetings expressed concerns about new debt crises emerging. “It was a do-nothing kind of week,” LeCompte said, adding that debt discussions were inconclusive and overshadowed by tariff talks.

Reza Baqir, a former Pakistan central bank governor who now heads sovereign debt advisory at Alvarez & Marsal, said: “For many developing countries, especially in the Global South, there is a real sense of despair that the agenda on Financing for Development is really not center-stage. And who is going to be there to champion that debate?” World Bank chief economist Indermit Gill also sounded an alarm on rising debt levels for emerging markets, noting that tariffs had prompted a sharp slowdown in trade and foreign direct investment that are crucial to developing country growth.

He and other World Bank and IMF officials told countries to cut their own tariffs to boost growth prospects.

NO US WITHDRAWAL

Policymakers did breathe a sigh of relief when Bessent expressed US support for the IMF and the World Bank, declaring that they have “enduring value” but criticizing their “mission creep” into climate, gender and equality issues. Rather than withdrawing from the institutions as prescribed by the Project 2025 Republican policy manifesto, Bessent said he wanted to refocus them on their core missions of economic stability and development, with expanded World Bank energy financing options and an end to China loans.

Participants at the meetings, along with financial markets, were encouraged by Bessent’s comments early in the week that triple-digit US tariffs on Chinese goods and vice versa were unsustainable, suggesting that a deal to ease them could be reached soon. But

China denied Trump’s assertions that tariff negotiations were under way with Beijing, adding to the week’s confusion over his tariffs and offering little reassurance to country delegations.

“I think most people left here bracing for things to get worse from an economic perspective,” said Josh Lipsky, a former IMF adviser who is now senior director of the Atlantic Council’s GeoEconomics Center. “The broad picture, when you step back, is very concerning.”

But a big challenge for developed countries at the moment was the recent selloff in US Treasury debt and other dollar-based assets, which indicated an erosion of trust in US economic policies, Lipsky said.

Trust in US economic leadership was the fundamental reason that the dollar had achieved reserve currency status, he said. While the US economy is too big to ignore the dollar for now, trading partners will try to seek alternatives unless that trust is repaired, he added.

RIYADH: Saudi Arabia’s airports handled 128 million passengers in 2024, marking a 45.8 percent increase since the launch of Vision 2030 in 2016, according to the Kingdom’s latest annual report. 

In 2024, airports across the country operated 905,000 flights and managed 1.2 million tonnes of cargo, underscoring Saudi Arabia’s growing stature as a logistics and aviation hub. 

Strengthening the aviation and logistics sector is a key goal outlined in Vision 2030, as the Kingdom aims to establish itself as a global center for business and tourism by the end of this decade.  

“Saudi Arabia is transforming its transport ecosystem, positioning itself as a global logistics and aviation hub by 2030,” the report stated.  

As part of these efforts, the Kingdom launched over 60 new routes last year under its Air Connectivity Program, with 12 new international carriers beginning operations in Saudi cities. Since its launch in 2021, the program has expanded air links with global destinations, enhancing Saudi Arabia’s prominence in global aviation. 

Innovation also took flight in 2024, with Saudi Arabia debuting the region’s first autonomous air taxi pilot project during the Hajj season. Designed to transport pilgrims across holy sites and expedite emergency responses, the air taxi pilot marks a significant step forward for the Kingdom’s smart mobility initiatives. Last year, Saudi authorities also granted the first operational license for drones to clean building facades. 

Transportation and logistics 

Saudi Arabia’s transportation and logistics infrastructure continued its rapid growth throughout 2024. The Kingdom ranked first regionally and 20th globally in handling commercial tonnage, while its Logistics Performance Index ranking improved to 38th globally, up from 52nd in 2016. 

“Saudi Arabia has embraced its strategic location as a global gateway between East and West, transforming logistics and transportation into cornerstones of economic development,” said the report. 

The year saw the launch of the $346.6 million Maersk Logistics Hub at Jeddah Islamic Port, and the addition of 34 maritime services across Jeddah Islamic Port, King Abdulaziz Port in Dammam, and Jubail Commercial Port.  

Further cementing its leadership, the Saudi Ports Authority, also known as Mawani, won the International Finance Award for infrastructure development, highlighting the sector’s global recognition. 

Saudi Arabia also secured membership in the Council of the International Transport Forum in 2024. Commenting on the achievement at that time, Saleh Al-Jasser, minister of Transport and Logistics, noted that it reaffirms the Kingdom’s pivotal role in advancing global transport and logistics services. 

Additionally, the master plan for an integrated logistics zone at King Salman International Airport received approval, reinforcing the Kingdom’s ambitions to become a world-class logistics hub. 

“Under Vision 2030, the logistics sector has undergone sweeping reforms and infrastructure advancements, aiming to make the Kingdom a world-class logistics hub that enables trade, strengthens regional integration, and supports national economic diversification,” added the report.  

Expanding rail transport  

Saudi Arabia’s rail sector also recorded significant progress. In 2024, 13 million passengers traveled via the national rail network, a 22 percent increase compared to the previous year, while freight movement reached 28 million tonnes. 

“These developments are reinforcing the Kingdom’s position as a regional leader in integrated, sustainable transport, supporting both economic growth and improved quality of life,” said the report.  

The Riyadh Metro, one of the world’s largest urban transit projects, was officially launched last year.  

Spanning six lines and 176 km, the metro boasts a daily capacity of 3.6 million passengers. In its first week of operation, the network transported 1.9 million passengers. 

The Riyadh Metro is a major component of Saudi Arabia’s Vision 2030 strategy, aimed at reducing traffic congestion in the capital and enhancing residents’ quality of life.