Current trade policy is still getting somewhere, according to those surveyed by Creighton University economist Ernie Goss.
“There’s support for those tariffs, even though they’re cutting into growth,” said Goss. “Supply managers are very supportive of those tariffs.”
In his Mid-America Business Conditions Index survey released Monday, Goss found that approximately 71.1 percent of supply managers support a continuation, or expansion in current tariffs on Chinese imports into the U.S.
“Let’s take our short-term pain for a long-term gain,” Goss said of the attitudes of the supply managers. “I think that’s what we’re talking about here. Supply managers think if we put enough pressure on China, they’ll mend their ways and engage in fair trade and freer trade. We’ll see what happens with that.”
Goss isn’t as positive about trade as his survey participants are and he sees other potential clouds on the horizon.
“Trade issues, it could go either way,” said Goss. “Then we’ve got, if you look at the interest rates, interest rates are very low, both long-term and short-term and the Federal Reserve is a big presence there. Also, of course, trading with China, the negotiations there. Although I do see positive growth ahead, it is a risky time, simply because of those two factors.”
Goss expects a rate cut from the Federal Reserve later this year.