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September 11, 2025
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EU economy suffers tension and tariffs are risk to inflation, says the IMF

EU economy suffers tension and tariffs are risk to inflation, says the IMF

What we have seen in recent years is that the US economy has proven quite resistant. Now we see that some tensions begin to appear

Julie Kozack, IMF spokesman.

“Internal demand has been moderated in the United States and employment growth is slowing down,” he added during a periodic informative meeting.

Kozack said that the advancement of imports at the beginning of the year in anticipation of tariffs caused some volatility in economic activity in the first semester, and that the encumbrances are now adding to inflation risks.

As a result of the combination of these factors, the IMF sees margin so that the Fed lowers interest rates, although it should proceed cautiously, paying attention to the new data.

As indicated, the downward review in the US employment data announced on Tuesday is a “little larger” than the historical average.

The US government said that 911,000 less jobs were probably created in the 12 months until March of the previously estimated, which suggests that the growth of employment was stagnating before Trump’s aggressive tariffs on imports.

Such reviews could be promoted by a variety of factors, including statistical problems and some related to response and survey errors, he said, adding that the matter will be discussed during the review of the US economy scheduled by the IMF for November.



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