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Lipsky said a potential new challenge for policymakers is whether the dollar will still be a safe haven asset, after Trump’s tariffs sparked a sell-off in US Treasury debt.
The IMF and World Bank meetings, along with a sideline gathering of Group of 20 finance leaders have proved crucial forums for co-ordinating forceful policy actions in times of crisis, such as the Covid-19 pandemic and the 2008-2009 global financial crisis.
This time, with trade ministers in tow, delegations will be aiming to shore up their own economies first, policy experts say.
“The focus of these meetings in the past couple of years, which has been heavily on multilateral development bank reform and to some extent on strengthening the sovereign debt architecture, will fall by the wayside,” said Nancy Lee, a former US Treasury official who is a senior policy fellow at the Center for Global Development in Washington.
Bessent tariff talks
Japan, pressured by Trump’s 25% tariffs on autos and steel and reciprocal tariffs on everything else that could hit 24%, is particularly keen to sew up a US tariff deal quickly.
With talks more advanced than those of other countries and participation by Trump, Japanese finance minister Katsunobu Kato is expected to meet Bessent to resume the negotiations on the sidelines of the IMF and World Bank gathering.
South Korean finance minister Choi Sang-mok also accepted an invitation from Bessent to meet this week to discuss trade, Seoul’s finance ministry said as the export-dependent US ally seeks to delay implementation of 25% tariffs and co-operate with the US on areas of mutual interest such as energy and shipbuilding.
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