The Trump administration has also taken steps toward imposing tariffs on industrial supplies and other goods imported from China and is considering an additional wave of tariffs on auto imports. Economists at Barclays estimated in March that steel and aluminum tariffs, by reducing trade volumes and boosting inflation, could reduce U.S. growth by 0.1 to 0.2 percentage point. Prices of futures contracts for U.S. hot-rolled coil steel have risen 10% since early March, while aluminum prices have increased 6.2%. Still, the central bank is alert to the potential wider impact of trade disruptions on economic growth. “People view the trade tariffs in an unfavorable way, they think the tariffs will hurt themselves and the economy as a whole,” Richard Curtin, director of the University of Michigan Surveys of Consumers, told the Journal.

Source: Wall Street Journal June 03, 2018 17:37 UTC