IMF chief Kristalina Georgieva dismisses impact of Trump trade war: ‘Trade is like water, you put in an obstacle, it goes around it’

For Kristalina Georgieva, head of the International Monetary Fund, it’s just another day at the office. He speaks in luckAt the 2025 Most Powerful Women Summit in Washington, D.C., she downplayed any fears of a trade war.

“Frankly, the death of trade is completely exaggerated,” Georgieva said. luckDiane Brady. “Trade is like water. You put it on [up an] Obstacle, it goes around it.”

While Georgieva recognizes that the world is becoming “much murkier” and full of uncertainty, one of the biggest challenges comes from getting agreement that cooperation is better than division: “We are in this big boat. It is a rough sea. It is better to row together.”

Fortunately, many countries already share this philosophy. She noted that after the US tariffs began earlier this year, 188 of the 191 IMF member countries did not opt ​​for retaliation. Instead, they turned to regional partners for trade. Examples cited include Southeast Asia and the Gulf region.

Even China has benefited from diversifying its trade portfolio: total exports rose 8.3% in September – the highest total this year – thanks to strong trade growth with the European Union. Chinese shipments to the United States fell 27% in September, marking half a year of double-digit trade declines, according to data from the General Administration of Customs.

Georgieva added that for business leaders, there is an increased opportunity to be an influential voice as long as they are willing to “buckle up.”

“Good news for the world,” she said. “The private sector has become more flexible and adaptable.” “Over the past years, we have seen in many countries where it has been there [a] Significant state presence in the economy – including due to the International Monetary Fund urging it to withdraw – more private sector initiatives. At this time of strong winds, [business leaders] You are an anchor of stability because you adapt, and continue to do so.

For women business leaders, in particular, she emphasized the need to always think about worst-case scenarios and be prepared to adapt to them.

“Think about the unthinkable, so you can be prepared when the unthinkable comes,” Georgieva said. “Because we know from Covid, we know from the war in Europe, that it will come, and we women are very strong and resilient, and we can face it.”