Strong retail sales in the U.S. and growth in China contrast with ongoing trade tensions

Week of April 14–17 

Here’s a quick look at the most relevant developments that shaped markets during this shortened week. 

United States 

• President Trump is considering temporary exemptions from the 25% tariffs on vehicles and auto parts. 
• Electronic devices like smartphones and computers have been temporarily exempted. 
• Retail sales rose 1.4% in March, beating expectations. 
• Fed Governor Waller noted that the inflationary impact of tariffs would likely be “transitory.” 

Europe 

• U.K. inflation fell to 2.6% in March, better than expected. 
• EU leaders believe most tariffs imposed on the bloc will remain in place. 
• The U.S. may temporarily ease some tariffs, but full removal isn’t expected. 

China 

• Exports rose 12.4% year-over-year in March, surpassing the 4.4% forecast. 
• First-quarter GDP grew 5.4% annually, despite ongoing trade tensions with the U.S. 

Brazil 

• Analysts expect economic growth to slow in the second half of the year, weighed down by high domestic interest rates and global trade friction. 

Mexico 

• The U.S. will impose a 20.91% tariff on Mexican tomato imports starting in July. 
• Finance executives warn that Mexico could lose its investment-grade rating by 2026 if trade relations with the U.S. deteriorate and fiscal deficits persist. 

Staying informed is key to understanding the ever-changing environment in which investments operate.

IMPORTANT EVENTS – CALENDAR 

• April 23: The Federal Reserve’s Beige Book economic report will be released. 
• April 22–24: Regional manufacturing reports will be published in the U.S. 

Monitor