International Monetary Fund: U.S. tariffs are causing a decline in domestic production levels
Sputnik News, Washington, February 26 - Documents obtained by Sputnik News, which assess the U.S. economy, show that U.S. import tariffs have had a negative impact on the country's economy, leading to increased personal consumption expenditures and a decline in domestic production levels.
The document states: "They (tariffs) also constitute a negative supply shock to the U.S. economy, expected to lead to an increase in the PCE (Personal Consumption Expenditures) price index (by about 0.5% by early 2026) as well as a decline in production levels (by about 0.5%)."
The report also predicts that increasing tariffs should slightly reduce the trade deficit.
The U.S. Supreme Court on the 20th ruled that the Trump administration's large-scale tariff policy, citing the International Emergency Economic Powers Act, was illegal. This constitutes a heavy blow to its economic agenda and sets clear boundaries for the use of emergency powers by the U.S. president to reshape global trade.
Original article: toutiao.com/article/1858144684076039/
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