Economics
Trump’s Tariff Headwind May Buffet Smooth-Sailing U.S. Economy
- Tariffs seen reducing growth as much as 0.2 percentage point
- Fed’s Dudley says trade war could damage global growth outlook
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On a day when U.S. economic tailwinds were highlighted by the new Federal Reserve chairman and evident in several reports, President Donald Trump decided to add a headwind.
Trump said on Thursday the U.S. will impose tariffs of 25 percent on imported steel and 10 percent on aluminum for “a long period of time.” Stocks and Treasury yields tumbled on concern that the move could spark a trade war and hold back the economy, with shares of big exporters such as Boeing Co. and United Technologies Corp. among those hit hard.