Trump tariffs live updates: US won't drop China tariffs without something 'substantial'

New projections released Tuesday by the International Monetary Fund forecast tariffs will hurt global economic growth, and that the U.S. economy will take a bigger hit than other large countries.

The IMF now projects global growth to drop 2.8% in 2025 and 3% in 2026 -- down from 3.3% for both years from its January 2025 report.

"The global economic system under which most countries have operated for the last 80 years is being reset, ushering the world into a new era," wrote Pierre-Olivier Gourinchas, the fund's economic counselor.

The U.S. economy is expected to grow at 1.8% in 2025 -- down from 2.7% when the fund's last forecasts were published in January.

The Chinese economy is expected to suffer to a lesser extent. The fund cut its growth forecasts for this year to 4% from 4.6% for China, and projects eurozone growth at 0.8%, down from the previous forecast of 1%.

-ABC News' Zunaira Zaki

Stocks are rallying early Tuesday as markets attempt a recovery following a battering amid fears that President Donald Trump will attempt to fire Federal Reserve chairman Jerome Powell.

The Dow Jones Industrial Average rose about 800 points, or 2.0%. The S&P 500 gained 2%, and the Nasdaq climbed more than 2%.

Trump met Monday with representatives from Target, Walmart and Home Depot, multiple officials familiar with the plan confirmed to ABC News.

The discussion during the meeting will be centered around tariffs, according to officials familiar.

The meeting was first reported by Bloomberg and Fox Business.

A White House official earlier confirmed to ABC News that a Lowe’s representative would be in the meeting, but the White House clarified after the meeting that Lowe's did not attend.

In a statement, Walmart thanked the president for "the opportunity to share our insights," while Home Depot called the meeting "informative and constructive.

-ABC News’ Katherine Faulders, Michelle Stoddart and Zunaira Zaki

Stocks were already headed for a lower open on Monday, but lost more ground following President Donald Trump's post on Truth Social criticizing Fed Chair Jerome Powell.

The Dow is down more than 800 points. The S&P is down more than 2% and the NASDAQ is down nearly 3%.

Stocks are lower, but the price of treasuries and value of the dollar, which normally rise in times of market turmoil, are also lower.

"'Preemptive Cuts'" in Interest Rates are being called for by many," Trump wrote Monday. "With Energy Costs way down, food prices (including Biden's egg disaster!) substantially lower, and most other 'things' trending down, there is virtually No Inflation."

"With these costs trending so nicely downward, just what I predicted they would do, there can almost be no inflation, but there can be a SLOWING of the economy unless Mr. Too Late, a major loser, lowers interest rates, NOW," Trump continued. "Europe has already "lowered" seven times. Powell has always been 'To Late.'"

--ABC News' Zunaira Zaki