Uncertainty continued to buffet global economies because of the rapidly evolving US trade policy. While the US announced a 90-day pause on most reciprocal tariffs, other tariffs remain in place. Additionally, US-China trade tensions have escalated since the start of April, with both imposing tariffs above 100%.

This state of flux has hit sentiment in the US and globally. Consumer sentiment in the US has weakened and short-term inflationary expectation is high. Global supply chains have been the most underutilized since May 2020 (the peak of the pandemic).US, Mexican and Canadian factories cut production and inventory owing to demand concerns. Crude and energy prices fell amid fears of a looming global slowdown.

In this milieu, data for the next few months will have to be carefully monitored to assess the impact of the pause and reimposition (if any) of reciprocal tariffs.

• The United States (US) showed signs of growth slowdown and weakening consumer sentiment amid tariff hikes
• China recorded a healthy growth rate of 5.1% in the first quarter of 2025 despite the increase in tariffs on US exports
• The US, United Kingdom and Japanese central banks kept their policy rates unchanged, while the European Central Bank cut rates further