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
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