US business optimism down over tariffs: Federal Reserve
US business optimism has waned over uncertainty caused by tariff disputes, rising interest rates and continued labor shortages, the Federal Reserve says.
"Most districts reported that firms remained positive; however, optimism has waned in some (districts) as contacts cited increased uncertainty from impacts of tariffs, rising interest rates, and labor market constraints," the Fed announced Wednesday in its "beige book" survey of the economy.
The announcement came amid President Donald Trump's punitive import tariffs in a stated effort to boost economy.
"Higher metals prices because of import tariffs continue to be a pain point for manufacturers and construction firms," according to reports from the Cleveland region, as cited by AFP. "There were a number of reports of tariffs leading to higher prices further down the supply chain," including to retailers.
The US president made steel from the European Union, Canada and Mexico subject to 25 percent tariffs and aluminum to 10 percent at the start of June, ending exemptions that had been in place since March.
The US currently charges a 2.5 percent duty on cars imported from Europe and levies a 25 percent tariff on imported pickup trucks.