IMF Warns of Growing Strain in U.S. Economy Amid Tariff and Jobs Concerns

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The International Monetary Fund (IMF) has flagged emerging signs of stress in the U.S. economy, cautioning that slowing job growth and tariff uncertainty could undermine resilience.

IMF spokesperson Julie Kozack told reporters on Friday (Sept. 12) that while the U.S. economy has weathered shocks in recent years, momentum is now fading. “Domestic demand has been moderating in the U.S., and job growth is slowing,” she said, describing the outlook as an “orange flag” warning of potential trouble ahead.

Inflation is still projected to fall toward the Federal Reserve’s 2% target, but Kozack noted that fluctuating trade conditions could alter that path. Over the summer, IMF chief economist Pierre-Olivier Gourinchas described global trade conditions as “precarious,” warning that unresolved disputes risk weighing on investment and growth.

The Trump administration is awaiting a ruling on foreign tax rates after a federal judge found tariffs imposed under the International Emergency Economic Powers Act unlawful. At the same time, concerns have surfaced over the accuracy of U.S. employment data. Revised figures show the economy added 911,000 fewer jobs in the year through March than originally reported.

The Labor Department’s inspector general has launched a review into the Bureau of Labor Statistics’ methods following the revision. Kozack stressed that reliable data is crucial for improving America’s global financial standing.

With inflation easing but job growth faltering, policymakers face mounting pressure to balance trade tensions, fiscal risks, and labor market weakness in the months ahead.