The International Monetary Fund says the US and global economies will likely slow significantly in the wake of President Donald Trump’s tariffs and the uncertainty they have created.

Treasury Secretary Scott Bessent sparked optimism in financial markets Tuesday when he called the tariff-driven trade war between the U.S. and China "unsustainable" and said it would likely "de-escalate.

The International Monetary Fund expects slower growth and higher inflation in the U.S. as a result of President Trump’s trade policies.