GBP/USD fluctuates near 1.3600 as markets grapple with inconsistent policy messages regarding President Donald Trump's erratic tariff policies. The reciprocal tariffs announced and immediately postponed in early April have been pushed back from July 9 to August 1, and within 24 hours, President Trump announced that further delays or suspensions of the tariffs could and should not be expected.

Adding further fuel to the tariff fire, President Trump announced a new 50% tariff on all copper imports into the US, which he confirmed would take effect "today" on Tuesday. Trump also reiterated additional double-digit tariffs on all goods from several countries, including a 25% across-the-board import tax on all goods from South Korea and Japan. It remains unclear how the Trump administration intends to shift these costs to the targeted foreign countries, rather than US consumers and importers, who traditionally bear the cost of tariffs and import taxes.

This week's economic calendar remains quiet, leaving investors grappling with fears of the ongoing trade war and a lack of clarity from the Trump administration. Despite some short-term bearish sentiment, most investors expect the Trump team to find a reason to cancel or suspend tariffs once again.

The flood of trade deals promised by President Trump and his top staff are either already on the President's desk or on the horizon, but have yet to materialize. Investors remain skeptical that material progress on trade deals involving overtaxed US constituents will yield meaningful results. (alg)

Source: FXstreet