President Trump’s new China tariffs will further undermine U.S. growth, business leaders and investors say, and likely pressure the Federal Reserve to lower interest rates more than expected.

Fallout from U.S. trade wars, which will include duties on all Chinese imports as of Sept. 1 as well as threats to add levies on items from French wines to automobiles and parts, were among the reasons the central bank cited Wednesday for lowering its benchmark short-term rate to 2% to 2.25%. The 25 basis-point cut was the first since the financial crisis in 2008 and interrupted a string of nine increases.