Trade War Escalates as Fed's Warsh Heads to Jackson Hole with Hawkish Hand

The U.S. trade deficit ballooned to a 16-month high in July as AI-driven imports surged, even as the Federal Reserve's preferred inflation gauge held stubbornly above target, setting a complex stage for Chair Kevin Warsh's pivotal Jackson Hole speech.

Trade Routes

• Canada: The trade war intensified after President Trump declared Canada "the worst to deal with," announcing substantial new tariffs on Canadian cars.
• Semiconductors: The White House is considering a...