Another week is upon us, and trade chatter is likely to continue. After the start of US retaliatory tariffs and a 25% tariff on automobiles, global equity markets fell sharply. Concern is growing that trade disruptions could hinder global economic growth. Markets will closely monitor any early reports of how tariffs might be impacting trade activity around the world. Outside of tariffs, there will be plenty of economic announcements for investors to analyze. Here’s what to watch for this week.

• The Bank of Canada will release its Business Outlook Survey today. Business outlook improved in the fourth quarter of 2024 but remained cautious. This report might show the nervousness being felt by Canadian businesses as US tariffs come into effect.
• The US will announce its inflation rate for March on Thursday. The annual inflation rate slowed to 2.8% in February from 3.0% in the previous month. Economists are expecting another decline, based on a survey from Bloomberg. Despite coming down, inflation remains above the US Federal Reserve Board’s (Fed) 2% target, which has contributed to the Fed holding steady thus far in 2025.
• There will be several key economic announcements from elsewhere, including European retail sales today, Mexico’s inflation rate on Wednesday, China’s inflation rate on Wednesday night and UK gross domestic product on Friday.
• Key earnings in Canada include Tilray, Cogeco and MTY Food Group. Notable earnings in the US include Delta, Wells Fargo, JPMorgan and Blackrock.

Rising trade tensions have heightened uncertainty among market participants, which was reflected in the sharp decline in global equity markets to close out last week. Amid these tensions, Canada’s federal election is quickly approaching. The candidates remain on the campaign trail, pitching their responses to tariffs and how they would help support Canada’s economy. The Prime Minister is expected to have serious discussions with US President Donald Trump following the federal election on April 28.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.