Despite better political signals on the trade front, US businesses are reporting pain from President Donald Trump’s tariffs.
According to the Federal Reserve’s Beige Book, more US industries are starting to notice the effects of tariffs.
There are two big reasons the tariff pain is spreading: an increasing number of goods subject to tariffs, and the length of time the tariffs have been in place.
The US-China trade war may be showing signs of easing up on the political front, but more US businesses than ever say they are feeling the pain from President Donald Trump’s trade war.
Just days after Trump and Chinese President Xi Jinping reached a deal to delay further escalation of the trade war, the Federal Reserve’s Beige Book — a collection of perspectives from the Fed’s 12 regional banks — laid out why many US companies want a quick solution to lower tariffs on steel, aluminum, and $250 billion worth of Chinese goods.
The number of mentions of the word “tariff” in the Beige Book actually declined for the first time since May, to 39 references in Wednesday’s report from 51 times in October’s edition. But the Fed said that reports of tariff-induced cost increases …read more
Source:: Businessinsider – Life