Particle.news

Download on the App Store

Tariffs Cool China’s Growth, Inflate U.S. Prices and Shrink Japan’s Exports

Fed policymakers held interest rates steady following higher-than-expected inflation driven by recent tariffs.

Image
Image
Image
Image

Overview

  • China’s real GDP rose 5.2% year-on-year in Q2, down from 5.4% in Q1 as property investment plunged 11.2% and sustained deflationary pressures emerged.
  • U.S. consumer prices increased 2.7% in June while core CPI climbed 2.9%, both figures surpassing forecasts amid tariff-driven cost pass-through.
  • Federal Reserve Chair Jerome Powell kept borrowing costs unchanged for a fourth meeting and cautioned that tariffs could further fuel inflation this summer.
  • Japan’s exports to the United States dropped 11.4% in June, marking a third straight monthly decline as U.S. duties weigh on auto and industrial shipments.
  • U.S. retail sales rebounded 0.6% in June to $720.1 billion—the first gain in three months—led by stronger auto and auto parts purchases.