ZCZC
BCN-06
US-TRADE-INFLATION-ECONOMY-TAXATION
Business economists say Trump tariffs will harm US: survey
WASHINGTON, Aug 20, 2018 (BSS/AFP) – Business economists overwhelmingly
worry President Donald Trump’s trade wars will harm the US economy, according
to a survey released Monday.
The Trump administration on Thursday is due to impose its latest round of
punitive tariffs on China, putting 25 percent duties on another $16 billion
in imports, with Beijing poised to retaliate dollar-for-dollar.
The twice-yearly survey by the National Association for Business Economics
also found respondents were split on December’s sweeping tax cuts, but agreed
Congress should do more to shrink the expanding budget deficit.
NABE Vice President Kevin Swift said more than 90 percent of the 251
economists surveyed said the tariffs and threats of tariffs had “unfavorable
consequential impacts.”
“Panelists also expect unfavorable consequential impacts should the United
States withdraw from NAFTA,” Swift said in a statement, referring to the
North American Free Trade Agreement.
Washington, Ottawa and Mexico City began talks a year ago to revise the 24-
year-old trade pact, which Trump has threatened to scrap should negotiators
fail to reach an acceptable deal. Officials have become more optimistic in
recent days that they could finalize a NAFTA rewrite by the end of the year.
Some companies across the United States have blamed the tariffs for
layoffs, squeezed profit margins and possible bankruptcies. Lawmakers in
Trump’s own Republican party have expressed outrage about the multi-front
trade conflicts and warned of long-term damage to the economy.
But White House officials say the American economy is more than robust
enough to endure the conflict, which they believe will ultimately result in
more equitable trade that reduces the US trade deficit.
A majority of those surveyed by NABE approved of December’s corporate tax
reductions but only a small share favored the changes for individuals, which
Democrats have criticized as unduly favorable to the wealthy.
More than 80 percent believed current fiscal policy would expand the budget
deficit as a share of GDP, and agreed Congress should work to reduce it.
Large majorities also favored fighting climate change and combating income
inequality but were split on how to achieve the latter goal, according to the
report.
According to the latest NABE survey, 60 percent of respondents believed
economic policy should do more to combat climate change.
In addition, 74 percent said economic policy should do more to combat
income inequality but respondents were divided on the best means of doing
this: 47 percent supported more education to improve worker productivity,
while 33 percent favored more progressive taxation.
BSS/AFP/MR/ 1053 hrs