What the Trade War Escalation Means for the U.S. Economy

Bloomberg Economics remains of the view that collateral damage from trade tensions will be manageable for the U.S. economy. To be sure, there will be winners and losers at a microeconomic level, but the actions to date are insufficient to sway a $17 trillion economy on the verge of the fastest annual growth of the current economic cycle. However, should tensions ratchet up further, look for signs of uncertainty weighing on business investment percolating through to economic activity and the labor market.