US calls for sweeping reforms to IMF and World Bank

WASHINGTON — Treasury Secretary Scott Bessent on Wednesday called for major overhauls to the missions of the International Monetary Fund and the World Bank but said the United States remained committed to maintaining its leadership role at the global economic institutions.

The comments, at a speech on the sidelines of the spring meetings of the IMF and the World Bank, come at a moment of concern among policymakers that the Trump administration could withdraw the United States entirely from the fund and the bank.

The United States has upended the global trading system in recent months and the views of the Trump administration on climate change, international development and economic equity are often at odds with those of the other nations that are shareholders in the global institutions.

On Tuesday, the IMF downgraded its outlook for growth globally and in the United States as a result of President Donald Trump’s punishing tariffs. Trade tension between the United States and China, the world’s largest economies, threaten to weigh on output this year and next.

In his remarks, Bessent defended the Trump administration’s trade actions and called for China to curb economic practices that he said were destabilizing international commerce. He noted that the United States was engaged in trade talks with dozens of countries and expressed optimism that these negotiations would help rebalance the world economy and make the global trading system more fair.

It remains unclear when, or if, the United States and China will begin to engage in talks. Trump has said he expects to speak with Xi Jinping, China’s leader, but no formal conversations have been scheduled.

Speaking to reporters after his remarks, Bessent dismissed speculation that Trump was considering unilaterally lowering the tariffs that he has imposed on China before any negotiations with Xi. Bessent emphasized that any moves to deescalate trade tensions would need to be mutual.

“I don’t think either side believes that the current tariff levels are sustainable,” he said.

Bessent added, “This is the equivalent of an embargo and a break between the two countries on trade does not suit anyone’s interest.”

Guo Jiakun, a spokesperson for China’s Foreign Ministry, said overnight that “if the U.S. truly wants to resolve issues through dialogue and negotiation, it should stop threatening and coercing, and engage in dialogue with China on the basis of equality, respect and mutual benefit.”

Bessent made clear that despite the concerns of the United States, the Trump administration does not plan to walk away from the IMF and the World Bank.

“‘America first’ does not mean America alone,” Bessent said. “To the contrary, it is a call for deeper collaboration and mutual respect among trade partners.”

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