An assessment by the White House Council of Economic Advisers determined that President Donald Trump’s trade policies will cause detriment to U.S. economic growth, according to a Thursday report by The New York Times.
The findings, which have not been publicly released but were discussed by those familiar with the report, fall in line with outside economists' predictions but contradict White House officials, who insist Trump’s approach will be “massively good for the U.S. economy.”
Asked whether the administration’s economists had modeled the impact that a trade war with China would have on the United States economy, [chairman of the Council of Economic Advisers Kevin Hassett] said Mr. Trump was a great negotiator who would persuade other countries to open their markets to American products*.*
“If you model a future where everybody else reduces their trade barriers to ours, then that’s massively good for the global economy and massively good for the U.S. economy,” Mr. Hassett said.
But the immediate result of Trump’s trade policies has been to the contrary: Those faced with new U.S. tariffs are in full retaliation mode.
This week, the World Bank said in its Global Economic Prospects Report that if tariff threats led to trade wars, the consequences could be “devastating.” It pointed to intensifying protectionism around the world as a risk to economic growth.