IMF head Kristalina Georgieva rejects the impact of Trump’s trade war: “Trade is like water, it gets in the way, it gets around it”

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

“Frankly, the death of trade is completely exaggerated,” Georgieva said. luck‘s Diane Brady. “Trade is like water. If you throw an obstacle, it gets 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 indicated that it was after The beginning of American tariffs Earlier this year, 188 of the IMF’s 191 member states 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 it It has benefited from diversifying its business portfolioTotal exports rose 8.3% in September – the highest total this year – thanks to strong growth in trade 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, in many countries where there has been a significant state presence in the economy – including because the IMF has urged them to withdraw – we have seen more private sector initiatives. And in this time of strong winds, (business leaders) are an anchor of stability because you adapt, you just have to 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.”