The ongoing trade spat between the world’s two largest economies will restrain the roaring U.S. economy, dulling an expected boost to growth from massive tax cuts passed through Congress just a few months ago, a Reuters poll found.
The latest expectations from a poll of over 100 economists taken April 9-17 suggest the White House’s hopes for sustained economic growth above 3 percent will not be realized, which in turn may spawn future expectations for even bigger budget deficits over the coming years.
The Reuters poll consensus has growth averaging 2.8 percent this year, slowing to 2.4 percent next.
U.S. President Donald Trump’s most recent push to impose duties on imports from China have triggered fears of a global trade war and have fueled wild market gyrations in recent weeks.
Nearly 90 percent of 50 economists who answered an extra question said the trade row with China will hurt the U.S. economy...