Trump’s import tariffs will not help U.S. economy says economists

Vastavam web: President Donald Trump’s import tariffs will do more harm than good to the U.S. economy, say the vast majority of economists polled by Reuters, who also expect the Federal Reserve to raise interest rates this year more than previously thought.The U.S. central bank will raise interest rates next week, all 104 economists polled by Reuters March 5-13 said, with three more hikes to follow this year, driven by a solid labor market underpinning optimism. That is more than two additional hikes after March expected in a poll taken a few weeks ago.

“This is not new. We have seen these trade battles back and forth in the past as well. But what is different this time is the persistence and the sense that we are only looking at the tip of the iceberg on protectionism,” said Ethan Harris, head of global economics at BofAML.“What is concerning also is the slippery slope risk here. There is no sign of any let up in this push for protectionism with the frequency of new proposals growing. It will be very surprising if there isn’t some measured retaliation over time from major trading partners.”