A week that began on a weak note will try and end on a stronger footing. If North American equity markets close higher today, it would mark the fourth consecutive day of gains for the S&P/TSX, S&P 500, and Nasdaq. Contributing to the positive momentum in the U.S. is Alphabet’s strong earnings reported yesterday (see Company News below), which has the stock trading higher in pre-market activity. That said, as at time of writing, futures are relatively muted, suggesting the major indexes still have some work to do to end the day in positive territory. While markets appear to be holding out hope for a de-escalation in U.S. and China trade tensions, uncertainty lingers. Analysts have noted that the ongoing trade conflict may have damaged the credibility of U.S. policy, and China has added to the ambiguity by stating it is not currently engaged in trade negotiations with the U.S.
China is reportedly weighing suspending its 125% tariffs on select U.S. imports, including key goods like medical equipment, industrial chemicals such as ethane, and aircraft leasing fees. This came as economic pressures mount from the ongoing trade war. The move reflects recent U.S. exemptions, which include electronics, and suggests the two nations are making baby steps toward easing tensions. Markets responded positively, with Asian stocks and the yuan rebounding. However, the broader standoff continues, as Beijing insists the U.S. lift all unilateral tariffs before any meaningful talks can resume.
Ahead of Trump’s tariffs on U.S. imports, some companies accelerated their orders for big-ticket items. U.S. durable goods orders rose 9.2% in March, driven primarily by a 139% spike in commercial aircraft demand. While transportation equipment orders soared 27%, broader manufacturing activity remained muted, reflecting business caution amid economic uncertainty fueled by escalating tariffs. Non-defense capital goods orders excluding aircraft (a key gauge of business investment) edged up only 0.1%, signaling weak underlying demand. Ongoing trade tensions, particularly between the U.S. and China, have disrupted supply chains and led some airlines to delay Boeing jet deliveries, despite the company’s ability to reroute aircraft to other buyers. Overall, first-quarter GDP growth is projected to remain sluggish, with some economists warning of a possible contraction.
Warnings of potential product shortages in U.S. retail stores are growing amid a decline in Chinese manufacturing orders and cancelled freight activity. Key product categories at risk include apparel, footwear, toys, low-cost home goods, and consumer electronics, especially as high tariffs effectively act as import bans. With 37% of U.S. apparel and 58% of footwear imports coming from China, the abrupt tariff implementation left little time to shift sourcing. Experts warn that fast-moving, low-margin goods will disappear first, especially in lower-end stores, and that supply chain disruptions could be most visible by mid-2025 if the tariffs persist. While some companies frontloaded inventory, continued canceled sailings and minimal trade negotiations with China are deepening uncertainty, particularly for small businesses preparing for critical holiday seasons.
Have no fear, Gov. Ron DeSantis is here. Labour shortages in Florida may be helped through a change in child labour laws if the governor can pass a bill that would remove restrictions on the number of hours that minors can work. The proposal is going through the state’s legislature with the support of small business groups, however unions have opposed it. Florida is not alone in trying to change child-labour laws with states like Ohio lowering the minimum age to serve alcohol while Iowa removed bans that previously did now allow 16- and 17-year-olds to work in areas such as demolition and brick manufacturing. New laws now permit such work as long it is for work-training programs.
Bon appétit. In case you missed it, a 2015 study published in the journal Appetite suggests that women may be more responsive to romantic cues after eating, contradicting the common idea that being too full kills the mood. Led by a research team at the University of California, San Diego, the research showed that women who consumed a 500-calorie meal replacement drink displayed greater sensitivity to romantic stimuli compared to those who hadn’t eaten. Researchers noted that once basic hunger is satisfied, people (especially women) may become more open to emotional and romantic experiences. This makes intuitive sense, but it may be worth conducting an updated study to confirm the results. Either way, enjoy your next home cooked meal.
Diversion: Jinx, you owe me a Coke
