• News
  • Guides
  • Reviews
  • Media
  • About
  • News
  • Guides
  • Reviews
  • Media
  • About
Sign up Now (For Free)

Sign up for our newsletter and receive the latest automotive news in your inbox!

Invalid email address
We promise not to spam you. You can unsubscribe at any time.
Thanks for subscribing!
News
Read Now
  • All News
  • Automakers
  • Automobiles
  • Auto Shows
  • Business
  • EVs & Environment
  • Guides
  • Lawsuits/Legal
  • Regulatory
  • Ride-Sharing
  • Safety & Recalls
  • Technology
Recent
  • The Rearview Mirror: Birth of a Legendary Design
  • UAW Ups Pressure, Expands Strikes to Parts Depots
  • Ineos Begins Grenadier Production for North America
  • VinFast Focuses on Europe to Beat Chinese Rivals to Market
  • Honda Establishes Global Motorsports Organization
  • Bugatti Rimac Signs U.S. Distribution Pact with VW
  • Tentative Settlement Ends Ford Strike Threat in Canada
  • NHTSA Revives Ford Focus Recall Investigation
  • Unifor, Ford Agree to Contract Extension
  • Volkswagen Reveals Third-Generation Tiguan
Editor’s Choice
    Reviews
    Read Now
    • All Reviews
      • Feeder
    • Classic Cars
    • Concept Cars
    • Convertibles
    • Coupes
    • Crossovers/CUVs
    • Diesel
    • Hot hatches
    • Hybrids
    • Luxury Vehicles
    • Minivans
    • Muscle Cars
    • Pickups
    • Sedans
    • Sports Cars
    • Super Cars
    • SUVs
    Recent Reviews
    • A Week With: 2024 Mazda CX-90 Turbo S Premium Plus
    • A Week With: 2024 Mercedes-AMG EQE SUV
    • A Week With: The 2024 BMW i7 xDrive60
    • A Week With: 2024 Alfa Romeo Tonale Veloce AWD
    • A Week With: 2023 Toyota Camry XSE Hybrid
    • A Week With: 2024 Subaru Impreza RS
    • A Week With: 2023 Chevrolet Colorado ZR2 Desert Boss
    • First Drive: 2024 Polestar 2
    • A Week With: 2024 Mercedes-Benz GLE 450 4Matic
    • A Week With: 2023 Mazda CX-50 Turbo
    Editor’s Choice
      Guides
      Car Warranty
      • Endurance Warranty Reviews
      • BMW Extended Warranty
      • Extended Warranty For Cars Over 100k Miles
      • Extended Car Warranty Cost
      • Subaru Extended Warranty
      • CarShield Reviews
      • CarShield Cost
      • Aftermarket Car Warranty
      • CARCHEX Warranty Reviews
      • Reputable Extended Car Warranty Companies
      • Used Car Warranty Companies
      • Best Car Warranty
      • Is CarShield A Scam?
      • Mercedes Extended Warranty
      • CarShield Plans
      Insurance
      • How To Identify A Car Insurance Company
      • Geico Mechanical Breakdown Insurance
      • How Far Back Does A Car Insurance Company Look
      • Mechanical Breakdown Insurance For Used Cars
      • State Farm Mechanical Breakdown Insurance
      • Mechanical Breakdown Insurance From Progressive
      • Dollar A Day Insurance
      • Auto Insurance For SSI Recipients
      • Car Insurance Rates After A Suspended License
      • Auto Insurance For Salvage Vehicles
      • Average Cost of Dodge Ram 1500 Car Insurance
      • Car Insurance Florida
      • Full Coverage Auto Insurance
      • GrubHub Insurance
      • Amazon Delivery Auto Insurance
      Shipping
      • Car Shipping Companies
      • uShip Reviews
      • Auto Shipping From California To Hawaii
      • Montway Auto Transport Reviews
      • Cheap Car Shipping
      • Easy Auto Ship Reviews
      • Auto Shipping Miami
      • Auto Shipping To Alaska
      • Car Shipping Cost
      • Auto Shipping Hawaii
      • Auto Shipping Puerto Rico
      • Sherpa Auto Transport Reviews
      • Auto Shipping Atlanta
      • Auto Shipping Boston
      • Auto Shipping. Chicago
      About
      • About Us
      • Contact Us
      • Terms of Use
      • Privacy Policy
      • Affiliate Disclosure
      • Sitemap
      TheDetroitBureau.com

      More than just “another” place to find news, reviews, spy shots, commentary, features, and guides about the auto industry. TheDetroitBureau doesn’t stop with the press releases or confuse a few lines of opinion with insightful, in-depth reporting.

      Contact Us

      Like what you see? Have some ideas for making The Detroit Bureau.com even better? Let us know, we’d love to hear your voice.

        Media
        Listen Now
        • Headlight News: All Episodes
        More from TheDetroitBureau
        • Guides
        • Latest News
        • Auto Reviews
        • Podcasts
        Headlight News

        TheDetroitBureau.com’s Headlight News offers a look at the past week’s top automotive news stories, as well as what’s coming up in the week ahead. Check out the week’s top story and our latest review…along with a dive into the past with this week in automotive history.

        home > news > Automakers > Federal Reserve Board Raises Caution Flag on Tariffs

        Federal Reserve Board Raises Caution Flag on Tariffs

        Rising trade tensions could negatively impact the U.S. economy.

        Joseph Szczesny
        Joseph Szczesny , Executive Editor
        July 18, 2018
        Fed Chair Jerome Powell recently warned the U.S. economy could be hurt by escalating trade tensions between the U.S. and its trading partners.

        The nervous reaction that has begun to paralyze decision-making in the auto industry has also drawn the notice of the Federal Reserve Board.

        Federal Reserve Chairman Jerome Powell, who was appointed by President Donald Trump, cautioned during a Senate hearing that mounting trade tensions between the United States and major economic partners could pose serious risks to the U.S. and the global economy.

        Subscribe Now!

        Powell was cautious in his remarks and tried to avoid commenting directly on Trump’s policies, when pushed by members of the Senate Banking committee on how deeply the U.S. could be harmed in a trade war, according to The Hill.

        In the most eye-opening portion of his testimony, Powell said escalating tariffs by the U.S. and others had already stunted business growth even though it was still too early to know the final impact.

        (Trump tariffs could complicate PSA’s return to the U.S. market. Click Here for the story.)

        The slowdown has been evident in auto sector where plans for new plants, both in the U.S. and Mexico, have been parked while diplomats wrestle with the North American Free Trade Agreement and tariffs.

        Powell said in a recent interview the Fed is “hearing a rising level of concern” from U.S. firms about the impact of Trump’s tariffs, which could trigger several “very challenging” economic situations.

        A new level of uncertainty was added this week when the U.S. filed cases against five trading partners, Canada, Mexico, Japan, China and the European Union, before the World Trade Organization, adding to a slew of legal actions over the administration’s tariffs. The move, however, also suggests the Trump administration is less confident that it kind find a way out of the trade conflict through direct negotiations.

        Powell warned that a tariff war with other countries will negatively impact the U.S. and global economies.

        Eight countries, including China, have filed cases at the WTO against the U.S. about the tariffs dispute as new U.S. tariffs have been applied to hundreds of products.

        Trump, ironically, has been highly critical of the WTO and has threatened to pull the U.S. out of the organization dedicated to crafting and enforcing trade rules.

        In his testimony before the Senate Banking Committee, Powell suggested the uproar over trade help “If it results in lower tariffs for everyone, that will be a good thing for the economy,” he said.

        “If it results in higher tariffs across a broad range of goods and services that remain that way for a long time, that will be bad for our economy and other economies, too,” he added.

        (Click Here to see how automakers could come out losers if Trump scuttles all tariffs.)

        Lawmakers, business groups and agriculture exporters have expressed worries that Trump’s tariffs on steel, aluminum and Chinese goods — and the retaliation they spur — could cause widespread economic harm.

        The Fed chairman, though, touted the strength of the U.S. economy in his opening remarks to the committee, citing a tight labor market, a stable financial system and rising consumer spending driven by higher after-tax income and increasing household optimism.

        Congressional Republicans are concerned a trade war could tank a strong economy and wipe out the effects of last year’s $1.5 trillion tax cut before this November’s midterm elections.

        Powell told Senators that the economy is currently strong, but that could change soon.

        The GOP is banking on record-low unemployment, strong economic growth and rising consumer optimism to maintain their grip on both the U.S. House of Representative and the U.S. Senate.

        Sen. Pat Toomey (R-Pa.), a staunch tariff opponent, told the Hill the Fed’s report of dying capital expansion plans was “disturbing” and a threat to the economic boost that Republicans sought by slashing tax rates.

        The Trump administration is also quietly taking other steps to slow the rise in gasoline prices, which is helping fuel inflation, slow the pace of economic growth and put more pressure on household budgets, by easing sanctions back on the threat of sanctions on companies that purchase oil from Iran.

        (To see more about how Trump’s potential auto tariffs are getting a global pushback, Click Here.)

        The easing in of the sanctions has helped cut the price of crude oil, which could result in lower gasoline prices in the near future.

        How to Care for Your Car

        Cheap Car Warranty

        Editor's Choice

        Best Extended Car Warranty

        Editor's Choice
        Recently Published

        The Rearview Mirror: Birth of a Legendary Design

        Today
        Fain in camo two 9-22-23

        UAW Ups Pressure, Expands Strikes to Parts Depots

        Yesterday

        Ineos Begins Grenadier Production for North America

        Yesterday

        Leave a Reply Cancel reply

        Your email address will not be published. Required fields are marked *

        Share this article:
        © The Detroit Bureau 2023
        • Guides
        • Privacy Policy
        • Terms of Use
        • Affiliate Disclosure
        • Contact Us
        • Sitemap
        Follow Us: