The dollar is looking weak this morning, as developments in the US-China trade war continue. In a surprising turn of events, President Trump has decided to delay tariffs on some Chinese imports due to ‘health, safety, national security and other factors.’ This comes after Trump said last week that he would impose a 10% tariff on $300 billion worth of Chinese goods.
This announcement arrives amid growing concerns that the trade war is having an effect on the global economy, possibly even leading to a recession. The two nations were due to hold face-to-face talks in September, however it is uncertain now whether these will take place.
Despite the President’s claim that the US doesn’t have an inflation problem, figures released yesterday showed that core inflation has hit a six-month high, jumping from 2.1% to 2.2%. Although this isn’t a dramatic change, it may make it slightly harder for the Federal Reserve to justify cutting interest rates again later this year.
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