In an interview with the Washington Post today, former Trump economic adviser Gary Cohn warned of the negative affects an escalating trade war would have on the US economy:
"If you end up with a tariff battle, you will end up with price inflation, and you could end up with consumer debt. Those are all historic ingredients for an economic slowdown."
When asked if tariffs could wipe out the economic gains from tax reform, Cohn said, "Yes, it could."
Senate Majority Leader Mitch McConnell also recently expressed concerns about a growing trade war:
“You’ve got Toyota impacted. You’ve got farmers impacted. I don’t think anything good will come out of a trade war, and I hope we pull back from the brink here. I worry that it will slow, if not impede significantly, the progress we're making economically as a country.”
After being among the chief proponents of tax reform in 2017, retailers now share in the concern that increased tariffs put American investments, job growth, and family budgets at risk.
Read the full recap of Cohn's interview here.
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs, and more than 100,000 stores, manufacturing facilities, and distribution centers domestically and abroad.