Tariff Disputes Threaten US Economic Growth

The Trump administration does not seem to be concerned that talk of unfair trade agreements and new tariffs on imports will harm our economic growth, but the Federal Reserve is. During the June meeting, the Board fielded calls from industry leaders that were worried about how tariffs on Chinese goods might affect how competitive prices will be on US goods abroad. The first wave of tariffs take affect at midnight tonight. Businesses, in fact, shared that they have planned to reduce or delay capital spending because of the uncertainty. BusinessInsider

As of the June meeting, the threats and retaliatory trade measures with not only China, but Canada, Mexico, and EU countries have increased. The “Fed” believes that before this time next year, the current interest rate hike schedule is expected to have a neutral affect on economic growth. It’s also important to note that the economy could be immediately affected by negative business sentiment, pessimism about how industries, such as: steel, aluminum, and soybeans, will be impacted by high prices overseas and if the scheduled shipment of goods is being cancelled altogether. US industry producer relationships around the globe are no doubt already being affected, but to what degree is completely unknown. MarketWatch

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