Trump Tariffs Could Negatively Impact US Economic Growth, Analysts Say

As the Trump administration hopes to further raise tariffs to 25% on Chinese-made goods, analysts continue to warn that the hike could negatively impact the U.S. economy.

Japanese financial firm Nomura believes the tariffs will wind up being paid for by the American consumer, which would, in turn, drag down the economy. Nomura's chief economist Lewis Alexander said the tariffs are "likely to be a drag on U.S. growth rather than neutral" due to its damage to the consumer economy. He said these tariffs are coming at a time when the American economy is "clearly slowing."

Alexander also added the tariffs could cause an uptick of core inflation of 0.5% over the next 12 months.

Earlier this month, Trump's economic advisor Larry Kudlow made an admission that the tariffs will hurt Americans, by saying that "both sides will pay" after the tariffs are applied to Chinese goods.

A Bloomberg Economics study has said that the tariffs will negatively impact the interconnected global economy, with $600 billion, or 0.2% of global GDP, being lost over the next two years.

The tariffs have already negatively affected U.S. agriculture with Trump giving a "massive" bailout of $14.5 billion in direct payments to American farmers negatively impacted by the tariffs.

The tariffs placed on China are part of Trump's beliefs that other countries are taking advantage of Americans when it comes to trade. Trump ultimately believes that tariffs will protect American industry and bring back manufacturing.