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The U.S. goods trade deficit widened more than expected in March, according to the Commerce Department, rising 5.3% to $87.9bn, as a sharp increase in imports outpaced export growth and pointed to a potential drag on first-quarter economic performance. Imports climbed by $9.6bn to $299.3bn, driven by strong demand across categories including motor vehicles, food, capital goods, and industrial supplies, while exports rose by a smaller $5.2bn to $211.5bn, with gains in vehicles, energy-related goods, and capital equipment partly offset by a decline in consumer goods shipments. The Commerce Department also reported Wednesday that U.S. durable goods orders increased 0.8% to $318.9bn in March, exceeding forecasts and ending a three-month decline, driven by gains across key categories. Orders excluding transportation rose 0.9%, while shipments also increased 0.7%, indicating a modest rebound in manufacturing activity.

 

Reuters

RTT News

Wall Street Journal

Export restrictions on critical raw materials have increased fivefold since 2009 despite continuing efforts by advanced economies to diversify their supply chains, according to the annual update of the OECD Inventory of Export Restrictions on Critical Raw Materials. Some minerals essential for energy systems, such as cobalt, manganese, graphite and rare-earth elements, saw particularly high exposure to export restrictions. OECD Secretary-General Mathias Cormann said: “Export restrictions can increase supply chain vulnerabilities in highly concentrated supply chains by limiting export volumes and driving up prices. Improving transparency on these measures is key to promoting more open and diversified markets for critical minerals, incentivising much needed investment to scale up production and promoting mutually beneficial partnerships with producer countries.”

 

Financial Times

OECD

The Federal Reserve held interest rates steady at 3.5% to 3.75% at Jerome Powell’s final meeting as chair, but deep internal divisions emerged over the future policy path, with four officials dissenting on guidance. While most supported maintaining an easing bias that suggests eventual rate cuts, others opposed it, and one policymaker favored an immediate cut, highlighting uncertainty as inflation risks persist. Mr. Powell also announced he will remain on the Fed’s board after stepping down as chair in May, breaking with precedent, citing concerns that legal and political pressures on the institution are undermining its independence. His successor, Kevin Warsh, will inherit a complex environment shaped by ongoing inflation around 3%, new energy-related shocks linked to geopolitical tensions, and questions over whether current policy is sufficiently restrictive.

 

The Hill

CNBC

Reuters

Wall Street Journal

President Donald Trump is seeking to introduce new import taxes after the Supreme Court rejected a previous tariff measure, in an effort to preserve a core element of his trade policy agenda. The ruling effectively halted the administration’s earlier approach, forcing officials to reconsider how to apply levies on foreign goods without running afoul of legal constraints. In response, Trump and his advisers are examining alternative frameworks that could achieve similar economic and political objectives while complying with the court’s decision, including restructuring how the taxes are defined or justified under existing law. The push underscores the importance of tariffs and trade barriers within Trump’s broader economic strategy, particularly as tools to protect domestic industries and exert leverage in international trade relationships. However, any new measures are likely to face continued scrutiny, both legally and politically, as courts, lawmakers, and trade partners assess whether the revised approach addresses the issues identified in the Supreme Court’s ruling.

 

AP News

Salesforce-owned Slack is suing Microsoft in a UK lawsuit over alleged anticompetitive practices relating to its Teams app. A ​Slack spokesperson said the lawsuit was "because Microsoft's practices harmed ⁠competition, using tying and bundling of Teams to ​limit customer choice." A Microsoft spokesperson said the case ​lacks merit, adding: "Slack's lackluster growth, compared to Zoom and Teams, was based on inferior capabilities when COVID-19 hit in ​2020, and had nothing to do with Microsoft." ​

 

Reuters

The House has passed the IRS Whistleblower Program Improvement Act (H.R. 7959) with a 346-10 vote. Co-sponsored by Rep. Mike Kelly (R-PA) and Rep. Mike Thompson (D-CA), the bill introduces a more favorable review standard for whistleblower appeals, allowing new evidence and protecting anonymity. It also mandates timely award payments, imposing interest if the IRS delays recommendations beyond 12 months. Mr. Kelly emphasized: "The IRS Whistleblower Program leverages insider knowledge to identify noncompliance that would otherwise have gone undetected." Since 2007, the program has recovered over $7.37bn in unpaid taxes, proving essential in combating tax evasion. The bill now moves to the Senate for consideration.

 

Accounting Today

A Swiss court has dismissed money laundering proceedings against Gulnara Karimova, a daughter of the former president of Uzbekistan. Karimova is accused of taking bribes and ​running a criminal organization known as "The Office" that allegedly channelled hundreds of millions of dollars to accounts in Switzerland ​between 2005 and 2013. She has previously denied ​any wrongdoing. The Swiss Federal Criminal Court dismissed the case because it would not be able to reach a judgment before the statute of limitations starts to expire in 2028.

 

Financial Times

Reuters

Washington Post

French weather forecasting service Météo-France has filed a police complaint after detecting anomalies in its temperature gauges at Paris-Charles de Gaulle airport. The agency said in a statement that it has formally filed a complaint regarding the “tampering of an automated data processing system” located in the airport, which is used to measure daily temperatures for Paris. CNN reports that on two separate occasions in April, users of U.S. betting platform Polymarket placed successful bets on unexpected temperature spikes in the French capital.

 

CNN

Euronews.com

Financial Times

New York Times

KPMG has announced it will exit its U.S. federal government audit business following the loss of a major Pentagon contract, previously worth up to $64m annually, and will redeploy more than 450 staff to other roles within the firm. The move comes as the Department of Defense restructures its audit approach amid ongoing difficulties in securing a clean audit opinion for its roughly $840bn budget. A new auditor is set to take over broader responsibilities as part of efforts to meet a 2028 deadline.

 

Financial Times

International Accounting Bulletin

Lululemon has disclosed that its founder and major shareholder Chip Wilson has provided advice to rival athleisure brands Alo and Vuori, highlighting tensions in his ongoing dispute with the company’s leadership. Mr. Wilson, who is pushing for board changes and has criticized management, said competitors had sought and adopted his guidance, while his spokesperson clarified he is neither a paid advisor nor investor in those firms. The revelation comes as Lululemon faces slowing growth, rising competition and investor concerns, with recent leadership changes and product issues adding to pressure on the business.

 

Bloomberg

The Boston Globe

Goldman Sachs has stopped its bankers in Hong Kong from using Anthropic’s AI models, in the latest indication of how the emerging technology is roiling U.S.-China relations.

 

Financial Times

Prada has introduced a limited-edition range of Indian-made sandals inspired by traditional Kolhapuri designs, as the company aims to rebuild relations after criticism in 2025 over cultural appropriation. The initiative includes producing 2,000 pairs in India, launching a three-year artisan training program, and collaborating with local organizations. The luxury group says it seeks to combine traditional craftsmanship with its global platform while addressing concerns raised by Indian stakeholders.

 

Economic Times