The sliding U.S. dollar.
The dollar’s bad start to the year
The U.S. dollar has weakened more than 10 percent over the past six months when compared to the currencies of America’s major partners — its worst start to a year since 1973.
President Trump’s aggressive tariff proposals and his more isolationist foreign policy, combined with inflation and rising government debt, have all contributed to eroding confidence in the role of the U.S. at the center of the global financial system. Even though Trump has eased off somewhat, and the U.S. stock and bond markets have recovered from their losses earlier in the year, the dollar has continued to slide.
“Having a weak dollar or a strong dollar isn’t the issue,” said Steve Englander, global head of G10 foreign exchange research. “The issue is what is it telling you about how the world sees your policies.”
Tariffs and trade:
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President Trump has said that his tariffs would go into effect on July 9, and countries are rushing to make deals. But those talks have been slowed by his threats of additional duties.
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Canada will eliminate internal trade barriers, starting today. But economists say the move is not a substitute for lost U.S. trade.
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U.S. and E.U. negotiators are working frantically to strike a trade deal by July 9. They may come up with only a rough outline.
China is far ahead in the race to power the future
Though China still emits more climate pollutants than the U.S. and Europe do combined, it is pivoting to cleaner power at breakneck speed.
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