Article snippet: MORE has presided over a strong U.S. economy during his first term, maintaining low unemployment and solid growth ahead of the November elections. Republicans hope the positive trends will carry them to victory in the midterm campaign, but growing trade tensions and tightening financial conditions could slow the expansion. Economists see U.S. growth nearing the White House's target of 3 percent, in part because of the $1.5 trillion tax-cut law that Republicans passed in December. While the fiscal boost from the tax law could power growth through the midterm elections, Trump’s tariffs on U.S. allies loom darkly over the future. The tariffs on Canada and Mexico have complicated negotiations on updating the North American Free Trade Agreement (NAFTA), raising the possibility that Trump could exit the deal altogether — an outcome that could prove hugely disruptive for U.S companies. With interest rates rising across the board, it remains to be seen whether businesses will follow through on their planned investments and expansions. “There are a lot of fissures out there, and some of them are starting to blow, but they’re not at the point where we’re seeing an eruption," said Mark Zandi, chief economist at Moody's Analytics. Still, he warned, “volcanoes can blow when you least expect.” Topline economic numbers during Trump’s first 18 months in office have remained robust, with unemployment below 4 percent and growth by GDP nearing 3 percent. The president inherited y... Link to the full article to read more