Tariff Deal Talks to Dominate IMF-World Bank Meetings This Week

 A view of ships under construction at the Shanghai Shipyard in in Shanghai, China, Sunday, April 20, 2025. (Chinatopix via AP)
A view of ships under construction at the Shanghai Shipyard in in Shanghai, China, Sunday, April 20, 2025. (Chinatopix via AP)
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Tariff Deal Talks to Dominate IMF-World Bank Meetings This Week

 A view of ships under construction at the Shanghai Shipyard in in Shanghai, China, Sunday, April 20, 2025. (Chinatopix via AP)
A view of ships under construction at the Shanghai Shipyard in in Shanghai, China, Sunday, April 20, 2025. (Chinatopix via AP)

Hundreds of global finance leaders will descend on Washington this week, each with a singular mission: Who can I talk with to cut a trade deal?

The semi-annual gatherings of the International Monetary Fund and World Bank Group are bustling affairs with high-level multilateral policy talks, but also one-on-one meetings between finance ministers eager to broker deals on things like project financing, foreign investment back home and, for poorer economies, debt relief.

This year, rather than policy coordination on climate change, inflation and financial support for Ukraine's struggle against Russia's invasion, one issue will dominate: tariffs.

More specifically, how to get out from under - or at least minimize - the pain from US President Donald Trump's unprecedented barrage of steep import taxes since his return to the White House in January.

And the focus may be largely on one man, new US Treasury Secretary Scott Bessent, who is Trump's lead negotiator for tariff deals and whose support for the IMF and World Bank remains a question mark.

"Trade wars will dominate the week, as will the bilateral negotiations that nearly every country is trying to pursue in some way, shape or form," said Josh Lipsky, senior director of the Atlantic Council's GeoEconomics Center. "So this becomes a Spring Meetings unlike any others, dominated by one single issue."

'NOTABLE MARKDOWNS'

Trump's tariffs are already darkening the IMF's economic forecasts, due to be released on Tuesday, which will put more pressure on developing country debt burdens.

IMF Managing Director Kristalina Georgieva said last week that the World Economic Outlook's growth projections will include "notable markdowns but not recession," largely due to "off the charts" uncertainty and market volatility caused by the tariff turmoil.

Although Georgieva said the world's real economy continues to function well, she warned that increasingly negative perceptions about the trade turmoil and concerns about recession could slow economic activity.

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 coordinating 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 with 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 cooperate with the US on areas of mutual interest such as energy and shipbuilding.

But many participants in the meetings have questions over the Trump administration's support for the IMF and the World Bank. Project 2025, the hard-right Republican policy manifesto that has influenced many of Trump's decisions to reshape government, has called for the US to withdraw from the institutions.

"I really see a key role for Secretary Bessent in these meetings to answer some very basic questions," Lee said. "First and foremost, does the US view support for MDBs (multilateral development banks) as in its interest?" Lee said.

US FINANCIAL SUPPORT

World Bank President Ajay Banga said last week that he has had constructive discussions with the Trump administration, but he did not know whether it would fund the $4 billion US contribution to the bank's fund for the world's poorest countries pledged last year by former president Joe Biden's administration.

Banga also is expected to expand this week on the bank's energy financing pivot from primarily renewables to include nuclear and more gas projects and a shift towards more climate adaptation projects -- a mix more in line with Trump's priorities.

Bessent did back the IMF's new, $20 billion loan program for Argentina, traveling to Buenos Aires last week in a show of support for the country's economic reforms and saying the US wanted more such alternatives to "rapacious" bilateral loan deals with China.

Three former career Treasury officials who later represented the US on the IMF executive board called the Fund "a great financial deal for America."

Meg Lundsager, Elizabeth Shortino and Mark Sobel said in an opinion piece published in The Hill newspaper that the IMF offers the US, the dominant shareholder, substantial economic influence at virtually zero cost.

"If the US steps back from the IMF, China wins," they wrote. "Our influence allows us to shape the IMF to achieve American priorities."



Egypt Plans $1 Billion Red Sea Marina, Hotel Development

This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)
This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)
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Egypt Plans $1 Billion Red Sea Marina, Hotel Development

This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)
This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)

Egypt announced plans on Monday for a new $1 billion marina, hotel and housing development on the Red Sea in a bid to boost the region's tourist industry.

Construction on the "Monte Galala Towers and Marina" project would ‌start in ‌the second ‌half ⁠of the ‌year and run for seven years, Ahmed Shalaby, managing director of the main developer, Tatweer Misr, said.

The 10-tower development - a partnership with the ⁠housing ministry and other state bodies ‌including the armed ‍forces' engineering authority - ‍would cost about 50 ‍billion Egyptian pounds ($1.07 billion), he added.

The project, also announced by the cabinet, will cover 470,000 square meters on the Gulf of Suez, about ⁠35 km south of Ain Sokhna, Shalaby said.

Egypt aims to boost total tourist arrivals to around 30 million by 2030, from around 19 million recorded by the tourism ministry in 2025.


Saudi-Polish Investment Forum Explores Prospects for Economic and Investment Cooperation

The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA
The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA
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Saudi-Polish Investment Forum Explores Prospects for Economic and Investment Cooperation

The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA
The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA

The Saudi-Polish Investment Forum was held today at the headquarters of the Federation of Saudi Chambers in Riyadh, with the participation of Minister of Investment Khalid Al-Falih, Minister of Finance of the Republic of Poland Andrzej Domański, and Vice President of the Federation of Saudi Chambers Emad Al-Fakhri.

The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation, expanding investment partnerships in priority sectors, and exploring high-quality investment opportunities that support sustainable growth in Saudi Arabia and Poland.

During a dedicated session, the forum reviewed economic and investment prospects in both countries through presentations highlighting promising opportunities, investment enablers, and supportive legislative environments.

Several specialized roundtables addressed strategic themes, including the development of the digital economy, with a focus on information and communication technologies (ICT), financial technologies (fintech), and artificial intelligence-driven innovation, SPA reported.

Discussions also covered the development of agricultural value chains from production to market access through advanced technologies, food processing, and agricultural machinery. In addition, participants examined ways to enhance the construction sector by developing systems and materials, improving execution efficiency, and accelerating delivery timelines. Energy security issues and the role of industrial sectors in supporting economic transformation and sustainability were also discussed.

The forum witnessed the announcement of two major investment agreements. The first aims to establish a framework for joint cooperation in supporting investment, exchanging information and expertise, and organizing joint business events to strengthen institutional partnerships.

The second agreement focuses on supporting reciprocal investments through the development of financing and insurance tools and the stimulation of joint ventures to boost investment flows.

The forum concluded by emphasizing the importance of continued coordination and dialogue between the public and private sectors in both countries to deepen Saudi-Polish economic relations and advance shared interests.


Gold Rises as Dollar Slips, Focus Turns to US Jobs Data

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Rises as Dollar Slips, Focus Turns to US Jobs Data

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices rose on Monday, buoyed by a softer dollar as investors braced for a week packed with US economic data that could offer more clues on the US Federal Reserve's monetary policy.

Spot gold rose 1.2% to $5,018.56 per ounce by 9:30 a.m. ET (1430 GMT), extending a 4% rally from Friday.

US gold futures for April delivery also gained 1.3% to $5,042.20 per ounce.

The US dollar fell 0.8% to a more than one-week low, making greenback-priced bullion cheaper for overseas buyers.

"The big mover today (in gold prices) is the US dollar," said Bart Melek, global head of commodity strategy at TD Securities, adding that expectations are growing for weak economic data, particularly on the labor front, Reuters reported.

Investors are closely watching this week's release of US nonfarm payrolls, consumer prices and initial jobless claims for fresh signals on monetary policy, with markets already pricing in at least two rate cuts of 25 basis points in 2026.

US nonfarm payrolls are expected to have risen by 70,000 in January, according to a Reuters poll.

Lower interest rates tend to support gold by reducing the opportunity cost of holding the non-yielding asset.

Meanwhile, China's central bank extended its gold buying spree for a 15th month in January, data from the People's Bank of China showed on Saturday.

"The debasement trade continues, with ongoing geopolitical risks driving people into gold," Melek said, adding that China's purchases have had a psychological impact on the market.

Spot silver climbed 2.9% to $80.22 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29.

Spot platinum was down 0.2% at $2,092.95 per ounce, while palladium was steady at $1,707.25.

"A slowdown in EV sales hasn't really materialized despite all the policy softening, so I do see that platinum and palladium will possibly slow down," after a bullish run in 2025, WisdomTree commodities strategist Nitesh Shah said.