On Tuesday, International Monetary Fund (IMF) Managing Director Kristalina Georgieva cautioned that new tariffs on US imports could increase consumer prices, disproportionately affecting lower-income families.

Her remarks come just weeks before the US presidential election, where both major candidates have expressed support for tariffs.

Republican candidate Donald Trump has proposed broad tariffs of at least 10% on imports, while Democratic candidate Kamala Harris, currently vice president, is part of an administration that has expanded tariffs, particularly on Chinese goods.

“Tariffs are very blunt instruments,” Georgieva said in an interview with CNBC. “They push prices up, and when we are still struggling to bring inflation down, we shouldn’t generate new reasons why prices may go up.”

Georgieva also warned of the likelihood of retaliatory measures from other countries, which could harm US businesses. She estimated a 75% chance of such retaliation following tariff impositions.

While she recognized the reasons for the rise in protectionism, noting that some communities have not benefited from global economic integration, Georgieva suggested targeted investments to support those affected.

On the broader global economy, she expressed optimism about a “soft landing” — a scenario where inflation decreases without causing a significant economic downturn—but urged caution, advising, “We all need to learn to keep our seatbelts on.”