U.S.-China Trade Tensions Escalate

Week of April 7–11

Here’s your weekly global economic summary, highlighting the most relevant developments. This week, tariff decisions, inflation data, and growth projections took center stage. 

HIGHLIGHTS 

United States 
• A 90-day tariff “pause” was announced. During this period, a universal tariff of 10% will apply—except for China, which will face a 145% rate. 
• March inflation slowed to 2.4% year-over-year. Core inflation dropped to 2.8%, its lowest level since March 2021. 
• The Federal Reserve remains cautious as it balances high inflation risks with slower growth. 

Europe 
• Markets now expect at least two rate cuts from the ECB in upcoming meetings. 
• The EU approved $23.2 billion in tariffs on U.S. goods but paused implementation in alignment with U.S. actions. 

Japan 
• Real wages fell 1.2% year-over-year in February, reflecting diminished purchasing power due to inflation. 

China 
• Tariffs on U.S. products were increased to 125%. 

Brazil 
• The services sector grew 0.8% month-over-month in February and 4.2% year-over-year, marking its eleventh consecutive increase. 

Mexico 
• Citi-surveyed analysts lowered their 2025 growth forecast to 0.3%. 
• March inflation accelerated to 3.8%, remaining within the Bank of Mexico’s target range. 

We’re closely tracking this dynamic environment to help you make informed decisions.

KEY UPCOMING EVENTS 

April 16–17 
• U.S. housing and construction data to be released 

April 18 
• U.S. markets closed for Good Friday 

Monitor