Your guide to what Trump’s second term means for Washington, business and the world US inflation climbed to 2.7 per cent in June, surpassing expectations and signalling that Donald Trump’s tariffs are hitting prices.

First came President Trump’s announcements of sweeping tariffs. Next up, lawyers say, is the cheating. Trade lawyers say that as tariffs skyrocket, so too do the incentives not to pay them. Clients are inundating them with questions about the line between lawful loopholes and fraud.

The August 1 deadline gives the countries time to negotiate agreements that could lower the tariffs. Some investors and economists have also noted Trump's pattern of backing off his tariff threats.