Bad economic news raises political risks for Trump

President Donald Trump enjoyed a brief stock market bounce after deciding to delay his threatened tariffs on Chinese-made cell phones and toys, but Wednesday’s very bad day for the US stock market underscored the grim economic reality facing the President as he runs for reelection.

Both China and Germany — the world’s second- and fourth-largest economies — delivered disappointing economic data overnight. Germany, which relies heavily on exports to China and the US, reported a slight contraction in the second quarter, opening up the possibility that it might tip into full-blown recession.
That news came after three central banks last week — in India, New Zealand and Thailand — all aggressively cut rates more than expected over trade fears and growing economic uncertainty.
The US has continued to see positive economic growth and a hot job market, thanks in part to Trump’s 2017 tax cuts, but that’s been largely driven by consumer demand that could be dashed by a slowdown abroad.