Tariff crisis Trump's tariff policy

Lutnick welcomes Canada's decision: "A dealbreaker"

US Commerce Secretary Howard Lutnick thanks Canada after the country's government decided to withdraw the digital tax on American companies, writes Reuters.

In a post on X, he claims that the tax was intended to inhibit American innovation and that the White House saw it as a "dealbreaker" in attempts to reach a new trade agreement.

The Canadian decision was made just hours before the tax was due to take effect on Monday. 

Failed tariff inflation could fuel conflict with the Fed

A widespread view among economists has been that the Trump administration's new tariffs on the rest of the world will lead to higher consumer prices. But so far, price increases have been somewhat subdued - which sets the stage for President Donald Trump to feel strengthened in his tariff policy and for internal tensions within the Federal Reserve. Bloomberg writes.

– Something that makes the situation difficult to assess is that we have never engaged in any similar experiment, says Professor William English at Yale, regarding the White House's tariff policy becoming difficult to assess.

So far, the uncertainty surrounding tariffs has caused Fed Chairman Jerome Powell to rest on his laurels instead of continuing with interest rate cuts. Powell has long endured heavy pressure from Donald Trump for his decision to remain firm, but now two central bank governors have also taken a position that the Fed should cut interest rates as early as July.

Tariff crisis Dollar development
The dollar is heading for its worst first half since 1973

The dollar's decline continues on Monday. The world currency is now heading for its worst first half since 1973, when the United States switched to a floating exchange rate. This is according to Capital Economics economist James Reilly, according to Reuters.

He warns that continued weakness in the dollar risks becoming self-reinforcing as European and Asian portfolios without currency hedges chase the movement.

– We therefore assess that this could be a decisive period for the dollar. Either it turns around or another 5 percent decline is around the corner, he says. 

Tariff crisis Trump's tariff policy
Tariff pause nears end – new agreements expected soon

The end of the 90-day pause in the tariff crisis is drawing closer and US President Donald Trump is expected to present several new "trade agreements" in connection with it. Bloomberg reports.

– The White House will present several new framework agreements as trade agreements even if they do not meet the standard definition of a trade agreement, says law professor Tim Meyer at Duke University.

Clark Packard at the right-wing think tank Cato Institute believes in mixed outcomes in the US bilateral negotiations.

– My feeling is that the White House is potentially extending the deadline for certain countries that are negotiating in good faith, he says.