US consumers are paying the price of trade taxes
- Data showed that China's imports from the US rose. However, data also showed that China's trade surplus with the US hit a record. A lot of what China exports, it first imports; so rising imports and exports are not unusual. There may also have been a desire to stockpile goods in the US and China before new taxes are imposed.
- The costs of US President Trump's earlier taxes on US consumers are starting to come through. Yesterday's consumer price data showed a surge in US washing machine prices. Prices were falling 7.6% y/y in February, and were reported up 13.1% yesterday. Import price data is due today.
- US President Trump is visiting the UK and has intervened in domestic politics in an interview with a UK newspaper. The president suggested no trade deal for the UK, said the Mayor of London had done a bad job on terrorism, and implied support for a former foreign secretary. The comments have little immediate market relevance, but are unlikely to improve UK public opinion of the US president.
- Spanish final consumer price inflation numbers are due, and again should be well above the ECB's target. Cunliffe of the Bank of England is scheduled to speak.