Kristalina Georgieva

Because the tariff shock from the United States

is not as dramatic as we feared in April.

In April, if you recall, the announced tariffs were 23%.

Today, US tariffs nominally 17.5%, but what is being collected is somewhere around 9%.

So smaller shock from the US.

Two, what did the rest of the world do?

With the exception of China and initially Canada,

that retaliated against the United States, the rest of the world said, not it for that.

We are not going to engage in retaliatory action.

So we have 191 members.

188 of them decided to trade by the rules that exist.

And the third very interesting thing is you now see the value of strong fundamentals.

Countries have built good institutions, they have built good policies, especially in the emerging world.

Now we are seeing the payback from that investment.

That is exactly the reason why everybody's calmer, even if China-U.S.

tensions go up and down.

because there is no spillover.

But let me say this, we shouldn't be complacent.

What we see is that Chinese goods that used to come to the United States are now redirected to Asia and to the European Union.

If these recipients of Chinese goods feel the heat and decide that they too should impose tariffs, we may still have the risk of a trade war moving from one place to another.