Tariffs Kick In, China Impact, U.K. Brexit Stockpiling: Eco Day

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Good morning Americas. Here’s the latest news and analysis from Bloomberg Economics to help get your day started:

• The U.S. hiked tariffs on more than $200 billion in goods from China on Friday in the most dramatic step yet of President Donald Trump’s push to extract trade concessions, deepening a conflict that has roiled financial markets and cast a shadow over the global economy. China promised to retaliate
  • Bloomberg Economics notes that not many Chinese firms could live with 25% tariffs
  • Meanwhile, the U.S. trade deficit with China shrank to the narrowest in almost three years
• In light on the tariffs, China is likely to load up extra stimulus this year to boost consumption, as otherwise the Communist Party faces failure to meet its long-term growth target
• Brexit stockpiling and consumer spending spurred the British economy in the first quarter but a disappointing March suggests that a slowdown may already be well under way
• Europe’s leaders will have no one to blame but themselves if they can’t find a female candidate to even consider for the presidency of the European Central Bank
• If the gig economy plays a significantly expanded role, the impact will likely be deflationary and is going to cause trouble for central bankers, writes Tom Orlik
• Concern has grown among some Bank of Japan board members over the side effects of the BOJ’s massive monetary easing, judging by comments from the April meeting released Friday
• Finally, here’s a look at how outdoor toilets show inequality is rife in Lithuania

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint

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