- April 23, 2025
- Posted by: Melanie Scott
- Category: Market News
“145% is too high. It will come down substantially.” Trump’s newest take on tariffs suggest the White House is weighing a significant reduction in tariffs on Chinese imports—from the current 145% down to 50–65%. A tiered structure is also under consideration, where goods deemed “strategic to American interests” could face tariffs of up to 100%, while less sensitive items may see rates closer to 35%. Markets remain heavily influenced by daily comments from the White House. Earlier this week, President Trump’s threat to fire Fed Chair Powell raised alarm bells over central bank autonomy and pushed the Dollar Index (DXY) to a three-year low of 97.921, its weakest level since March 2022. Today Trump backtracked on those comments, stating he has no intention of firing Powell.
The USD has been trading within a narrow range this week, showing limited reaction to today’s slate of mixed economic data. Flash Manufacturing PMI surprised to the upside at 50.7 (forecast 49.0), signaling a modest return to expansion. However, Flash Services PMI missed expectations, coming in at 51.4 vs. 52.8. New home sales were a bright spot, jumping to 724K, well above the 684K forecast.
In Europe, PMIs painted a mixed picture:
- France: Manufacturing slightly beat expectations at 48.2 (vs. 47.9), while services slipped to 46.8 (vs. 47.7).
- Germany: Manufacturing came in stronger at 48.0 (vs. 47.5), but services dropped to 48.8 (vs. 50.3), reinforcing concerns about lingering weakness in Europe’s largest economy.
- UK: Manufacturing PMI met expectations at 44.0, but services disappointed sharply at 48.9, missing the 51.5 forecast, and signaling potential softness in Q2 activity.
Oil prices dipped today after Kazakhstan’s energy minister said the country cannot cut output due to foreign control of major projects, dropping to a low of $61.55 per barrel.
Looking ahead, markets will turn their attention to U.S. weekly jobless claims tomorrow, followed by UK and Canadian retail sales on Friday.
Current market conditions:
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