US inflation numbers are under pressure due to recent actions taken by former President Donald Trump, but it is unclear if these efforts will have a significant impact on the figures.
Trump recently signed an executive order targeting China and other countries that engage in intellectual property theft. This move could potentially affect global trade patterns, including those of China’s major trading partners, such as the US. However, the relationship between inflation rates and intellectual property policies is complex, making it difficult to predict how these actions will impact inflation numbers.
Some economists argue that Trump’s trade policies have already had an effect on global trade and may contribute to higher prices in some industries. Additionally, the ongoing trade war with China has led to increased tariffs and other protectionist measures, which could exacerbate inflation pressures.
However, others point out that the current inflation rate is largely driven by domestic factors such as monetary policy and supply chain disruptions caused by the COVID-19 pandemic. These underlying factors are more likely to shape inflation numbers than Trump’s executive order or trade policies.
As a result, it remains to be seen whether Trump’s pressure on China will have a significant impact on US inflation numbers.
Source: https://www.ft.com/content/04d45bf5-e018-4bcf-acb0-7c4d3ade7275