Welcome back to Financial Times! I’m Tracy Ross. Trade shocks are shaking up the markets, growth forecasts are looking gloomier, and inflation risks are on the rise. Here’s today’s economic pulse.

In breaking news, the U.S. is imposing a 35% tariff on Canadian goods starting August 1st, citing trade deficits and fentanyl disputes. Canada has promised retaliation, putting $762 billion in bilateral trade at risk.

Markets have been all over the place as the July 9th EU and U.S. tariff deadlines passed without resolution. Investors are now bracing for a possible 15 to 20% global tariff wave. The S&P’s volatility just hit its highest point this year.

Growth warnings intensify, World Bank cuts 2025 forecasts for 70% of nations, global growth now at 2.3%, the weakest since the 2008 outside recessions. O E C D warns inflation could spike to 4.2%

Key signals: the U.S. slowdown is deepening after the Q1 contraction, Europe is relying more on defense spending to counter trade pressures, and Japan’s exports are feeling the pinch under these tariff strains.

With stagflation looming, it’s crucial to protect your portfolios — diversify, hedge against tariffs, and keep a close eye on central bank moves. Staying flexible is the name of the game.

That’s it for today on Financial Times. Thanks for tuning in, and we’ll see you tomorrow with the latest updates.

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