Trump's trade war is just getting started as new tariffs roll out, analysts say

The president has been announcing tariffs for months, but his latest moves are opening salvos in potentially drawn-out tit-for-tats with dozens of countries.

President Donald Trump has favored tariffs for years. His expanding trade war is sure to ripple through the global economy for a long while, too.

That’s because ramping up tariffs on foreign governments frequently draws retaliation — a likelihood that even industries Trump aims to support are already bracing for. While he has been rolling out an ever-shifting series of import taxes for months, the sweeping “reciprocal” tariffs he announced Wednesday are opening salvos in what could become drawn-out tit-for-tats with potentially dozens of governments.

Unlike the narrower, targeted tariffs Trump imposed on certain countries and products in his first term, his latest duties are set to rewrite the rules of global trade on a far broader level — and in an environment in which inflation is running hotter.

“This is a game changer, not only for the U.S. economy but for the global economy,” Olu Sonola, head of U.S. economic research at Fitch Ratings, said in a note Wednesday evening.

“Many countries will likely end up in a recession. You can throw most forecasts out the door, if this tariff rate stays on for an extended period of time,” she said, adding that the levels Trump is introducing haven’t been seen since 1910.

https://www.nbcnews.com/business/economy/trumps-trade-war-just-getting-started-rcna199402

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