The Financial Post reports in its Wednesday, July 30, edition that at the beginning of the year, there was widespread agreement that President Donald Trump's tariffs would strengthen the dollar and lead to stagflation, with experts predicting that each percentage point increase in tariffs would reduce U.S. growth by 0.1 per cent and raise inflation by the same amount. A Financial Times dispatch to the Post reports that the actual impact, however, has been less severe than anticipated. Some analysts suggest this is due to Mr. Trump's posturing, yet the U.S. tariff rate has risen from 2.5 per cent to 15 per cent, generating tariff revenue at an annual rate exceeding $300-billion (U.S.) -- about four times last year's pace. Many economists believed that tariffs would automatically strengthen the U.S. dollar by reducing imports. However, the dollar experienced its worst decline in the first half of the year since the early 1970s. This is largely due to the dollar starting the year at a historically high value, leading foreign investors to hedge their risks and invest more outside the U.S. The negative economic effect of tariffs is being countered by other forces, including the mania for artificial intelligence and more government stimulus.