On Monday representatives from companies and industry groups will descend on Washington, D.C., to make sure their voice is heard in connection with the Trump administration’s plan to levy a 25 percent tariff on the final remaining group of Chinese imports that previously have not been impacted by the trade war between the U.S. and China.
Tariffs: A public hearing is slated to begin Monday at 10 a.m. at the Offices of the U.S. Trade Representative. Meanwhile the group Tariffs Hurt the Heartland on Thursday sent a letter to President Trump expressing their concern over the “escalation of tit-for-tat tariffs,” as well as what broadly applied tariffs will mean for the U.S. economy. They cited a loss of more than 2 million U.S. jobs, a reduction in GDP by 1 percent and an average of more than $2,000 in costs for the average American family should the proposed 25 percent be levied on an additional $300 billion in Chinese imports.
Tariffs Hurt the Heartland has garnered more than 600 signatures from companies from different sectors across the U.S., as well as from trade organizations and other groups representing the different sectors impacted by the proposed tariff.
Whether it will make a difference is unclear. President Trump has indicated that he will make a decision about two weeks after an expected meeting with China’s President Xi at the G-20 summit in Osaka on June 28-29.
Federal Reserve: Stock market volatility over the past few weeks reversed course and rallied in the past two weeks on speculation that the Federal Reserve would cut interest rates–not just once, but maybe even twice–to help spur economic growth over concerns of an impending recession. On Friday, the May retail sales report–up 0.5 percent on top of April’s revised figures up 0.3 percent from its prior tally of down 0.2 percent–might give the Fed some pause and continue with its wait-and-see approach. The Federal Open Market Committee meeting, where Fed members debate policy, will meet June 18-19. If there’s no rate cut this time, the next possibility would be next month at the two-day meeting on July 30-31.
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