U.S. President-elect Donald Trump’s tariff threats are already driving up longer-term borrowing costs around the world, International Monetary Fund (IMF) managing director Kristalina Georgieva said. Uncertainty about the incoming administration’s trade policies is adding to worldwide economic headwinds and “is actually expressed globally through higher long-term interest rates,” Georgieva told reporters in Washington on Friday. That’s happening even as short-term rates have gone down, a “very unusual” combination, she said.

Trump, who’s due to take office next week, has vowed to slap new charges on imports from U.S. adversaries such as China, as well as allies including Canada and Mexico, raising concerns that supply-chain disruption will slow economic growth and push prices higher. IMF chief economist Pierre-Olivier Gourinchas warned in October that tariffs and trade uncertainty could reduce global output by about 0.5 percent.