Agricultural and manufacturing companies have been among the most difficult affected by tariffs originating from a year-long trade war, according to a new survey by business economists.
National Association for Business Economics (NABE) investigated members earlier month, about a year after President Trump Donald John Trump2020 Them Seth Moulton: Trump is not a patriotic celebrity celebrating on Capitol File WHCD after party Graham: "It doesn't bother Trump telling McGahn to burn Mueller MORE s steel and aluminum tariffs came into force on March 23, 201[ads1]8.
Business economists replied greatly depending on the type of company they work for.
Three quarters or 75 per cent of respondents in the commodity-producing sector – including agriculture, mining, construction and production – reported that the latest tariffs had a negative impact on their companies.
It compares with 40 per cent of respondents in transport, tools, information and communications sector that said tariffs had a negative impact; 11 percent of respondents in the finance, insurance and real estate industries; and 25 percent of respondents in the service sector.
Overall, 28 percent reported that nuances tariffs had a negative impact on their businesses, while 1 percent said they had a positive impact. Several respondents, 43 percent, said they had no impact on their firms, while another 13 percent said the tariffs were "neutral" for their companies.
A little over one in five respondents said the tariffs have led to higher costs for the companies in the past year, with a 13 percent reporting negative impact on sales. Among the respondents in the commodity-producing sector, 67 per cent reported higher costs, 50 per cent reported higher sales prices and 42 per cent reported a negative impact on sales.
45 percent of respondents in commodity production reported purchase changes or supply chain, 31 percent reported delayed investments and 23 percent reported delayed inventory due to actual or potential trade policy changes. Among all respondents, two-thirds reported no change in employment and investment due to actual or potential trading activity.
The survey results come as State Secretary Steven Mnuchin Steven Terner MnuchinDid Mueller looks at Trump's tax returns? On the Money: Fed pick Moore says he will be released if he becomes a "political problem" Trump promises to fight "all judges" | Deutsche Bank reportedly turned Trump records over to NY officials | Average tax repayment down 2 percent Poll: About half of voters say Congress should focus on getting Trump's returns More and US Trade Representative Robert Lighthizer Robert (Bob) Emmet LighthizerChinese, US dealers fine-tuning details Trump economy continues to roar forward Trump says no discussion on extended deadline in Chinese trade negotiations. MORE travels to China to start trading conversations on Tuesday. The Chinese government will send a delegation to Washington for more discussions on trade starting May 8, the White House said.
The US and China both set prices for each other's products last year, but Trump agreed in December not to raise tariffs while the countries are working to reach an agreement.
Trump has made trading one of the biggest financial problems. He spied the economy on Friday after the Commerce Department reported economic growth in the first quarter of this year at 3.2 percent.
NABE also asked its members about the Federal Reserve's pause in raising interest rates. Trump has strongly pushed back against interest rate increases, arguing that they are exacerbating economic growth.
Half of respondents said they expect interest rate hikes to be favorable for their business relationships, while 7 percent say they expect it to be unfavorable and 39 percent say it won't change.
NABE investigated 116 of the members working for private companies or industry associations from April 1-10.