The U.S. imposes higher tariffs, impacting manufacturing and employment expectations.

U.S. Imposes Global Tariffs 

Week of March 31 – April 4 

Here are the key events that influenced market sentiment this week: 

United States 

• The U.S. announced a new 10% blanket tariff on imports, with reciprocal measures for over 150 countries starting April 9. 
• Nonfarm payrolls exceeded expectations in March, adding +228,000 jobs, though unemployment rose to 4.2%. 
• Manufacturing activity contracted for the first time this year, according to the ISM index. 

Europe 

• Inflation fell to 2.2% year-over-year, in line with expectations. 
• Markets anticipate a 25-bps rate cut at the ECB’s April 17 meeting. 
• The European Commission responded to U.S. tariffs and is preparing countermeasures. 

China 

• The manufacturing PMI reached a 12-month high, driven by a surge in new orders. 
• The country will face a 54% tariff on its exports to the U.S. and has retaliated with a 34% tariff on U.S. goods. 

Brazil 

• Industrial production unexpectedly declined by 0.1% month-over-month in February, dragged down by durable goods manufacturing. 

Mexico 

• February remittances totaled $4.459 billion, down 1% year-over-year. 
• Mexico and Canada were excluded from the U.S. tariff announcement. 
• The government introduced an 18-point plan to boost domestic consumption, investment, and social programs. 

In times of volatility, it’s essential not to be swayed by short-term noise—discipline and patience create long-term wealth. 

Important events:

• April 9: The U.S. Federal Reserve minutes will be released. 
• April 10: March inflation data will be published in the U.S. 

Monitor