The U.S. expanded at a 3% annual pace in the second quarter, masking signs of weakness in the economy as businesses and consumers grappled with how to respond to ongoing trade wars.

The U.S. economy grew 3.0% in Q2, but trade distortions and tariffs raise questions about long-term stability.

"Despite these welcome developments, tariffs remain historically high," the IMF's chief economist said on Tuesday.

The International Monetary Fund, in its world economic outlook released on Tuesday, projects 3 percent global growth this year. That is higher than the 2.8 percent it forecast after Mr. Trump announced his “Liberation Day” tariffs in April, while down from the 3.3 percent it predicted in 2024.