Forecasters anticipate President Donald Trump’s trade war will hit economic growth this year and next as tariffs push prices higher and put a dent in consumer spending. The US economy is set to expand 1.

Trump and Treasury Secretary Scott Bessent have been making vaguely conciliatory comments about the administration’s approach to China. The former said this week that his tariffs will eventually “come down substantially” and that he won’t play hardball with Beijing.

Businesses across multiple industries are hiking prices, backing away from previous financial guidance and warning of growing uncertainty as U.S. President Donald Trump's trade war pushes up costs, upends supply chains and stirs concerns about the global economy.