Higher tariffs and heightened geopolitical tensions may push government debts to new highs over the coming years, making the need for policymakers to outline robust plans for containing the surge more pressing,

The International Monetary Fund warned that global public borrowing will likely surge this year as trade tensions triggered by the US lead to slower economic growth and more volatility on financial markets.

Global public debt peaked in 2020 as governments borrowed heavily for COVID-19 relief. But it has been edging back up, and now it's accelerating.

Treasury Secretary Scott Bessent has played a balancing act trying to reassure nervous investors that the U.S. would maintain its global leadership role while staying true to the Trump administration’s skepticism of multilateral banking organizations.

The treasury secretary said the Trump administration remains committed to playing a leadership role in the IMF and the World Bank but will “demand that the management and staff of these institutions be accountable for demonstrating real progress.