The U.S. faces risks of higher inflation and unemployment. Countries without tax hikes on imports are focused on the hit to growth.

The Bank of England cut interest rates on Thursday to tackle the expected hit from U.S. President Donald Trump's tariffs but a surprise three-way split among policymakers cooled expectations that it might speed up future moves.

While Fed Chair Jerome Powell suggested it’s in a “good position” to act decisively if necessary, some economists worry this approach could make the central bank slow to respond to a downturn. Consumer sentiment has plummeted amid trade policy uncertainty,