Protectionism is slowly starting to weigh on the global economy. From demand at factories to company profits and prices consumers are paying, the tit-for-tat trade battle U.S. President Donald Trump started with China and the European Union is starting to show up in numbers. And it’s still early days, with Trump saying Tuesday that “tariffs are the greatest,” a warning that he may not let up until he gets what he wants.
The latest signs of the fallout came in activity reports from Japan, Europe and the U.S., as well as anxious words from companies facing an additional uncertainty and having to decide between taking a hit to their profit margins or jacking up prices. Many manufacturers are also facing higher raw-material costs, another squeeze on earnings.
Read more at Bloomberg.