Powell: tariffs will bring more inflation and less growth. US car buying spree

"The economy is solid despite increased uncertainty and downside risks". Fed Chairman Jerome Powell said this. At the moment, the Fed is "well positioned to wait for more clarity" before considering actions on monetary policy and rates, Powell added.

"We hope for Italian and European businesses that there will be a good dialogue between Prime Minister Meloni and President Trump." This was said by Confindustria president Emanuele Orsini, at the end of the meeting with Iv leader Matteo Renzi.

"The US," he added, "has always been our trading partner, you know how important it is for us to have the product that is shipped to the US. We have a positive balance of 42 billion, so we hope that things can go well and that would be a great achievement for Europe'.

EMANUELE ORSINI

The conflict over tariffs with the United States could cost Germany up to EUR 290 billion in terms of prosperity. This is according to an analyst of the German Economic Institute (Iw), as Handelsblatt reports. This corresponds to 1.6 per cent of the annual GDP. The analysis states that the economic losses between 2025 and 2028 due to the imposition of US duties alone 'will amount to approximately EUR 200 billion'. This would be equivalent to 1.2 per cent of annual gross domestic product. If US trading partners were to impose duties on US imports, the costs could rise to EUR 290 billion.

Fitch cuts global growth estimates 'in response to the severe escalation of the trade war'. The global economy will grow by less than 2% this year, 0.4 percentage points less than previous estimates. Growth in the US and China was cut by 0.5 points to +1.2% for the US and to below 4% for China minus. The euro area will grow less than 1%. Fitch expects the Fed to wait until the fourth quarter to cut interest rates. "The weakening dollar has created more room for easing by other central banks and we expect bigger cuts from the ECB," Fitch said.

Honda will move production of the hybrid-powered Civic model from Japan to its Indiana plant in the US in an effort to mitigate the impact of President Donald Trump's tariff policies. The carmaker explained that it sees fit to move production of the model, currently assembled at its plant in Saitama Prefecture, north of Tokyo, to the United States, considering the high demand and popularity of the Civic in that country.

President Xi Jinping urged the "earliest possible signing of the China-ASEAN Free Trade Area Update Protocol" to cement bilateral trade ties that reached $980 billion in 2024 and with the two sides mutually remaining each other's top partners by 2020. Meeting with Malaysian Premier Anwar Ibrahim in Kuala Lumpur, Xi called for "resisting decoupling and breaking supply chains", "small backyards with high walls" and "excessive tariffs with openness, inclusiveness, solidarity and cooperation" against "the law of the jungle", according to Cctv.

Tariffs imposed by the United States threaten to hit Steinbach Volkskunst, a small German company that produces handmade nutcrackers that are especially in demand among American collectors, hard. The historic factory, located in Marienberg in the Erzgebirge region, exports 95 per cent of its production and sells more than 90 per cent of its products in the US. The introduction of the duties decided by the Trump administration poses a serious threat to the company. Among the most popular pieces: Father Christmas, Uncle Sam, the Statue of Liberty and even a miniature Trump, sitting at the presidential desk while signing a 'presidential proclamation'. Price: over 300 dollars.

"As the 'guinea pig' of the new US trade strategy, Japan is the first country to get direct talks with the Trump administration after the announcement of new 'reciprocal' tariffs, suspended for 90 days. Negotiator Ryosei Akazawa's trip to Washington today is a test of whether and how the US is willing to deal with its partners, says the Financial Times, underlining the uncertainty that continues to surround the tycoon's actual goals. President Donald Trump announced on Truth Social that he will personally attend the meeting, flanked by Treasury Secretary Scott Bessent and Commerce Secretary Howard Lutnick. "Japan is here today to negotiate on tariffs, military support costs and 'trade fairness,'" Trump wrote. "Hopefully we can find a deal that is good (great!) for Japan and the US."

US Vice President JD Vance and the Second Lady, Usha Vance, will be in Italy, and then in India, from 18 to 24 April. This was announced by the White House, emphasising that the Vice President will discuss economic and geopolitical priorities with the leaders of the two countries. In Rome, Vance will meet with Prime Minister Giorgia Meloni and the Vatican Secretary of State, Cardinal Pietro Parolin. In India, Vance will meet PM Narendra Modi.

The disruption in trade between the US and China risks triggering a 'significant trade diversion, raising concerns in third markets about increased competition from China'. This is stated in the outlook update published today by the WTO. According to the new estimates - which take into account the tariffs introduced by the White House and countermeasures taken by Beijing - China's merchandise exports will increase in volume by between 4% and 9% in all regions outside North America as trade is redirected. "At the same time, US imports from China are expected to fall sharply in sectors such as textiles, clothing and electrical equipment, creating new export opportunities for other suppliers to fill the gap. This could open the door for some less developed countries to increase their exports to the US market'.

"The outlook for global trade in 2025 has deteriorated significantly due to rising tariffs and trade policy uncertainty". This is stated in the outlook update published today by the WTO, which, based on measures in force as of 14 April, including the suspension of 'reciprocal tariffs' by the United States, now forecasts that the volume of global merchandise trade will decline by 0.2 per cent in 2025, before recovering modestly by 2.5 per cent in 2026. "This new estimate for 2025," the report points out, "is almost three percentage points lower than would have been projected without the recent policy changes and represents a significant reversal from earlier this year, when WTO economists expected continued trade expansion supported by improving macroeconomic conditions. If the currently suspended reciprocal tariffs were to be enforced again, the WTO warns, growth in world merchandise trade would be reduced by an additional 0.6 percentage points, while a further increase in trade policy uncertainty would lead to an additional reduction of 0.8 percentage points. Overall, reciprocal tariffs and increased policy uncertainty would lead to a 1.5 per cent decline in the volume of world merchandise trade in 2025.

California plans to sue to stop Donald Trump's tariffs. The lawsuit will be filed in the coming hours and represents the first significant challenge to the administration's trade policy. "Trump's illegal tariffs are wreaking havoc on families, businesses and the economy, raising prices and threatening jobs," said Governor Gavin Newsom in announcing the lawsuit.

On duties "the concern for us is high, so let's hope that the negotiation will only be positive because anyone who hopes it will not be positive is a fool". This was said by Confindustria president Emanuele Orsini speaking at the Stati Generali di Federturismo being held in Rome, in reference to the meeting between Prime Minister Meloni and US President Trump. 'It is not a matter of opposition or government policy,' he stressed, 'it is a matter of safeguarding and holding the European economy together.

US President Donald Trump announced that he will attend a meeting today to negotiate trade tariffs with Japan's envoy. "Japan will come today to negotiate tariffs, the cost of military support and trade fairness. I will attend the meeting, along with the Treasury and Trade Secretaries. Hopefully a positive (great!) deal can be reached for Japan and the US!" he wrote on his social platform Truth.

"PM Meloni's visit to Washington was coordinated with Commission President von der Leyen". This was indicated by the EU spokeswoman who confirmed the telephone contact between the two representatives last night. Meloni and von der Leyen will be in touch after the meeting between Meloni and Trump. The spokeswoman emphasised, however, that the competence for the trade negotiations with the US lies with the European Commission.

"We will do everything we can to reach a positive outcome" in the negotiations with the US on tariffs, "but in parallel we have to prepare for the potential scenario of no deal". This was said by EU Justice Commissioner Michael McGrath at a press conference. Tariffs 'are the wrong way to go because they hurt businesses and consumers and ultimately can also put jobs at risk', he stressed, reiterating that Brussels aims for a 'negotiated solution'. "I think it is good that the work now continues at expert level," he added.

"We care about producers and our priority has always been to facilitate their access to markets, promote Italian quality and reduce the barriers that hinder our ability to grow. We will continue in this direction, also and above all in this phase that is as complex as it is rapidly evolving, in which it is necessary to think clearly, work pragmatically. But amidst the many uncertainties of this time, I can offer you one certainty: the government, myself, and Minister Lollobrigida will continue to be" "at the side of those who produce, defend our identity," "of those who hold high the flag of our brand in the world, because the only thing we have at heart is to do the best for Italy and Italians". Prime Minister Giorgia Meloni said this in a video message to the General Assembly of the Consortium for the Protection of Grana Padano.

New telephone conversation, according to European sources, between EU Commission President Ursula von der Leyen and Council President Giorgia Meloni. The conversation took place yesterday evening, preceding Meloni's mission to the White House, and is part of the negotiations between the EU and the Trump administration on the tariffs dossier.

China wants Donald Trump's administration to take a number of steps before agreeing to trade talks. Bloomberg reports this based on "a source close to the government's thinking" in Beijing. Among the conditions: more respect by curbing disparaging judgments of US government primary figures; a more consistent US position; and a willingness to address Chinese concerns over US sanctions and Taiwan. Beijing demands that Washington appoint a contact person for the talks who has the tycoon's support and who will help draft an agreement that Trump and Xi Jinping can sign when they meet.

- The US is asking Spain for more defence spending and is strongly opposed to the digital tax. This is the outcome of a meeting yesterday in Washington between Treasury Secretary Scott K.H. Bessent and Spanish Economy Minister Carlos Cuerpo. In the note of the US Treasury Department, it is written that "the secretary and the minister had a frank discussion" and during the talks "Bessent emphasised the need for increased defence spending by Spain in the context of NATO" and expressed "the continued US opposition to the digital services tax applied by Spain and other countries".

China hopes that "the US will rid itself of its obsession with hegemony as soon as possible and recognise that the indiscriminate use of force will not make America great again, but will only inflict painful disasters on the US people and the rest of the world". Defence Ministry spokesman Zhang Xiaogang, on the assumptions of fiscal year 2026 defence spending rising to USD 1 trillion for the first time, said that the "very high budget has once again highlighted the belligerent nature of the United States and its belief that the law of the strongest applies", despite the US being "heavily in debt".

For US President Donald Trump, the new US tariffs are bringing record sums into the coffers of the US Treasury and have also helped to reduce inflation and the cost of almost all products. On social Truth Traumop said that 'the US is collecting record numbers in tariffs, with the cost of almost all products falling, including gasoline, groceries, and virtually everything else. Likewise, inflation is falling.

China's first quarter of 2025 saw an annual increase in GDP of 5.4 per cent, above the 5.1 per cent estimated by analysts, keeping the same pace as the last three months of 2024. On an economic basis, the National Bureau of Statistics reported, growth was 1.2%, lower than both the 1.6% of the previous three months and the 1.4% consensus.

In the United States ''inflation is down'' and because of the tariffs there are ''record receipts''. This was stated by US President Donald Trump on Truth Social. ''The United States is cashing in record numbers because of tariffs, with the cost of almost all products falling, including gasoline, groceries and virtually everything else. Likewise, inflation is falling. Promises made, promises kept!" wrote Trump.

The US must 'stop whining' that it is a victim, when in fact it is the one who has caught 'a free ride on the globalisation train'. This was written in the China Daily, one of the English-language newspapers of the Chinese Communist Party.

The comment comes in response to repeated statements by US President Donald Trump, who has complained that the US is being 'cheated' by other countries, starting with China, and has launched a tough trade war with the imposition of punitive tariffs that, in the case of Beijing, are as high as 145%.

"The US is not being cheated by anyone," wrote the China Daily. "The problem," he added, "is that the US has been living beyond its means for decades. They consume more than they produce. They have outsourced industrial production and borrowed money to maintain a higher standard of living than their productivity levels would justify. Instead of being 'cheated', the US has enjoyed a free ride on the globalisation train".

Hong Kong Post has announced that it 'will not collect any duties on behalf of the United States and will suspend acceptance of US-bound mail items'. In a note, Hong Kong Post said it will stop accepting US-bound mail items with immediate effect and airmail as of 27 April. The move follows President Donald Trump's executive order on blocking US customs exemption for small parcels from China (the 'de minimis' clause) valued at $800 or less

One of the conditions that US President Donald Trump will present in negotiations with more than 70 countries for lighter tariffs will be to isolate China. The Wall Street Journal reports this today. The White House aims to convince countries to prohibit China from transporting goods through their territories, the business newspaper reported, adding that Washington also wants to prohibit Chinese companies from setting up in these countries in order to circumvent US tariffs and prevent cheap Chinese industrial goods from entering their markets.

US Treasury Secretary Scott Bessent is one of the main architects of this strategy, reports the WSJ. In the near future, such agreements could be reached mainly with Japan, the United Kingdom, Australia, South Korea and India.

- US tariffs are exerting 'pressure' on China's economy and trade, despite the fact that first quarter GDP grew by 5.4 per cent, above expectations. "At present, the US imposition of high tariffs is bound to exert some pressure on China's foreign trade and economy," admitted Sheng Laiyun, number two of the National Bureau of Statistics, in the data presentation press conference streamed. Against this backdrop, both the recovery and growth in the Dragon are still being consolidated, Sheng added.

- China has appointed Li Chenggang to the post of vice-minister of trade, entrusting him with the thorniest dossiers on international trade, amidst the bitter tensions over tariffs with Donald Trump's US. Li, according to a note posted on the website of the Ministry of Human Resources, replaces Wang Shouwen who was for years deputy trade minister and Beijing's point man in the sector as China's representative for international trade negotiations.

Donald Trump does not rule out that his administration may want some countries to choose between the US and China. This was said by the US president himself in an interview with Fox Noticias, reported by the American media, responding to those who asked him about the Belt and Road Initiative and whether he wanted some Latin American countries to choose between the two countries.

Donald Trump has launched an investigation into whether or not tariffs on essential minerals are necessary. The investigation was initiated under 'Section 232' of the Trade Act of 1962, which allows for restrictions on imports deemed a threat to national security, and could result in new duties.