Economic Effect of Tariffs Will Be ‘Modest,’ Says Goldman Sachs

While steel and aluminum tariffs cause frictions, the amount of trade affected is still fairly small, according to analysts

Surrounded by steel and aluminum workers, U.S. President Donald Trump signs a 'Section 232 Proclamation' on steel imports during a ceremony in the Roosevelt Room at the White House in Washington, on March 8, 2018. Chip Somodevilla/Getty Images

The Trump administration’s latest move to slap tariffs on steel and aluminum imports from its closest allies has drawn criticism and threats of retaliation. The economic effect of these tariffs, however, will be modest, according to Goldman Sachs.

The administration announced on May 31 that it would not extend exemptions on tariffs on steel and aluminum imports that had been granted to Europe, Canada, and Mexico.