Unemployment is low, and the economy is humming, but concern is growing among some conservatives that President Donald Trump risks giving away gains from his historic tax cuts in a trade war with China. The conservative-leaning Tax Foundation earlier this week projected that the $150 billion in tariffs that Trump has proposed would cut gross domestic product (GDP) and wage growth by a tenth of a percentage point over the long run and reduce full-time jobs by 79,000. Middle and lower-income taxpayers would absorb a disproportionate share of the hit, according to the analysis.
