Moody's Zandi: US tariffs will hurt sovereigns globally if they prompt more trade restrictions
Mark M. Zandi, chief economist of Moody's Analytics, is out on the wires, via Reuters, commenting on the effect of new proposed steel and aluminum tariffs.
Key quotes:
• If trade partners react with proportional response to tariffs, US industries may cut 100K-150K jobs, mostly in manufacturing sector
• US tariffs will hurt sovereigns globally if they prompt more trade restrictions
• Proposed tariffs to contribute to rise in inflationary pressure, given that US economy is operating around capacity
• Benefit of tariffs for US steel & aluminum producers offset by impact on consuming sectors
• Tariffs to erode competitiveness of many US manufacturing companies, including aerospace, transportation, heavy machinery cos.
• Could see US jobless rate fall to 3%-3.5% by summer 2019 in wake of stimulus from tax cuts, Federal budget deal