Good morning. China tells its carriers to stop taking Boeing jets in the latest trade war salvo. The US economy is set to lose billions as foreign tourists stay away. And just a friendly reminder, it’s tax day! Listen to the day’s top stories.
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China ordered its airlinesnot to take any further deliveries of Boeing jets, people familiar said, as part of the tit-for-tat trade war that’s seen Donald Trump levy tariffs of as high as 145% on Chinese goods. Beijing also asked Chinese carriers to halt purchases of aircraft-related equipment and parts from US companies. For Boeing, the standoff is a fresh setback as it was closing on Airbus, its main rival.
Nothing to see here, folks. Treasury Secretary Scott Bessent played down the recent selloff in the bond market, rejecting speculation that foreign nations were dumping their holdings of US Treasuries, while flagging that his department has the tools to stabilize the market if needed. Bessent also took the opportunity to praise President Javier Milei's policies (he’s on a visit to Argentina).
With just twoweeks to go before Canada’s general election (April 28), voters are warming up to Mark Carney, whose demeanor has helped his image as the anti-Trump candidate. Polls suggest Carney’s Liberal Party has a lead of about 5 to 7 percentage points over his main opponent, the Conservatives’ Pierre Poilievre. The next few days will be crucial as they face off in televised debates on Wednesday (in French) and Thursday (in English), surely to be dominated by the trade war.
Mark Carney speaks during a campaign rally in Calgary, on April 8, 2025. Photographer: Gavin John/Bloomberg
It’s tax day! (sorry to be a downer). The conclusion of the filing season will provide early clues toward resolving a nagging question hanging over the US Treasury: How honest will Americans be about their income when there are suddenly fewer auditors to check them? The answer is sure to have ramifications. A drop in tax collections would spark even more angst about the county’s fiscal burden.
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The Deep Dive: Taking a Hit
Photographer: Victor J. Blue/Bloomberg
The US economy is set to lose billions of dollars this year from a pullback in foreign tourism and boycotts of American products, adding to a growing list of headwinds keeping recession risk elevated.
Arrivals of non-citizens to the US by plane dropped almost 10% in March from a year earlier, according to the International Trade Administration.
Goldman Sachs estimates the hit from reduced travel and boycotts this year may total 0.3% of gross domestic product, or almost $90 billion, in a worst case scenario.
Among those rethinking their vacation plans are Canadians, wary of visiting their neighbors to the south after Donald Trump imposed punitive tariffs on the country and suggested it should become the 51st US state.
Hostility at the border is adding to the stress about US travel, with reports of harsh and lengthy detentions of foreign nationals.
Another source of jitters: Some Canadian executives are advising staff against traveling to the US, and to take burner phones—typically a device with little to no personal data on it—if they do decide to go.
Tariff turmoil puts fiscal discipline on the table for bubble-era startups—and that’s not a bad thing, Parmy Olson writes. For Silicon Valley, Trump’s tariff shock has delivered a hard truth: The free-money era won’t be back for a while.
