Analysts warn of a hit to earnings and iPhone demand if President Trump follows through with a 10% tariff on Chinese goods.
Several government measures designed in part to bring manufacturing jobs back to the United States are having the opposite effect so far.
The country’s economy experienced a significant slowdown as it faces trade tensions with the United States.
As part of the long running Airbus-Boeing dispute, the U.S. Trade Representative is considering tariffs on 89 additional items.
“The escalation in trade and tariff tensions earlier this month appears to have shaken consumers’ confidence," the Conference Board says.
Those surveyed by KPMG have employed various strategies to reduce the added cost.
The effects of supply and demand dictate that in many cases, tariffs actually result in lower prices for consumers.
“We expect further bumps along the road for manufacturing as a slowing global economy and escalating tariffs on major U.S. trading partners pose headwinds."
The president promised an escalating trade war until Mexico takes action to "dramatically reduce or eliminate" illegal immigration.
The increased tariffs are in retaliation for the Trump administration’s latest decision to increase duties on Chinese products.
Falling demand, higher costs from U.S. tariffs on raw materials, and European taxes on imports hurt its earnings.
The spat centered on subsidies allegedly given to Boeing and Airbus.
