IMF drops Ricardo Reis as chief economist over Trump tariff critique

The International Monetary Fund (IMF) abandoned its decision at the last minute to appoint London School of Economics professor Ricardo Reis as its chief economist, following criticism he levelled against the economic policies of US President Donald Trump.

According to a report by the Financial Times citing sources familiar with the matter, the IMF had planned to appoint Reis to lead the institution’s research department and had even completed preparations for the official announcement. However, fund management changed this preference at the final stage.

Speaking to the newspaper, three sources pointed to Reis’s objections to Trump’s trade tariffs as the reason for the decision.

The Portuguese economist had assessed the situation following the additional tariffs enacted by the US president in April last year, emphasising that these steps would trigger price increases for US consumers and unleash a new wave of inflation.

Under official procedures, the authority for high-level appointments within the IMF falls under the remit of Fund Managing Director Kristalina Georgieva. In contrast, the US, as the organisation’s largest shareholder, holds substantial informal influence over the governance mechanism.

Following the crisis, another figure from the London School of Economics, Professor Silvana Tenreyro, a former member of the Bank of England’s Monetary Policy Committee, was appointed to the chief economist post.

Tenreyro took over the role from French economist Pierre-Olivier Gourinchas.

Declining to answer questions regarding the background of the selection process, an IMF spokesperson said only that a policy of strict confidentiality was maintained regarding candidates and that the selection of the chief economist was conducted through a competitive screening procedure.

Established in 1944 to promote international monetary cooperation, ensure financial stability, and support sustainable economic growth, the IMF comprises 191 member countries.

In April 2025, the Trump administration introduced a baseline 10% tariff on imports from numerous countries and imposed graduated higher tariffs on dozens of states.

Under this framework, the highest tax rates were levied on goods from Cambodia at 49%, Laos at 48%, Madagascar at 47%, Vietnam at 46%, and Sri Lanka at 44%.

The new arrangement imposed tariffs of 34% on Chinese-origin products and 20% on EU products.

Assessing the moves, which the American press characterised as a global trade war, former US Treasury Department economist David Beckworth described the tariffs as a formula for stagflation that would fuel inflation while curbing economic growth, as well as a recipe for losing the 2026 congressional elections.