WASHINGTON, April 4 (Reuters) - Ratcheting trade tensions between the United States and China will result in a bigger negative impact on the U.S. economy, St. Louis Fed President James Bullard said on Wednesday.
“In recent days we’re talking about more generalized tariffs between the U.S. and China, I think that is a more significant development,” Bullard told an audience of bankers in Little Rock, Arkansas.
On Tuesday, President Donald Trump announced plans to impose tariffs on $50 billion in Chinese goods, resulting in swift retaliation from Beijing who proposed a list of similar duties on key U.S. imports including soybeans, planes, cars, beef and chemicals.
“I also think that the president has a lot of conviction on this issue and is determined to get better trade deals for the U.S….and that means a bumpy ride I think for all of us as these negotiations proceed,” Bullard said.
He added that he foresaw more stock market volatility and an impact on individual businesses as China targets particular sectors in the United States. (Reporting by Lindsay Dunsmuir; Editing by Chizu Nomiyama)