The White House has confirmed China will be hit with a 104 per cent tariff rate from 12:01am ET on Wednesday.
Donald Trump’s press secretary confirmed that the measures will come into place after Beijing did not lift its retaliatory tariffs on US goods by a Tuesday noon deadline.
Earlier, the US president threatened to impose an extra 50 per cent levy on top of the existing 54 per cent tariff on Chinese imports, bringing the total levies on Chinese products imported to the US to over 100 per cent.
The Chinese foreign ministry vowed its country would “fight till the end”, amid reports it is preparing for a US imports block, as it accused America of “typical unilateralism and protectionist economic bullying”.
It is not yet clear what counter-measures Beijing is planning to impose, although the BBC reported, citing state media, that the US agricultural sector could be impacted, including a potential total ban on poultry.
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Key points
- China to be hit by 104% tariff tomorrow, White House confirms
- China vows to 'fight till the end' in trade war with US
- FTSE100 climbs higher after days of plummeting
- Reeves says ‘nothing off the table’ in US trade talks
Watch: White House says additional tariffs on China go into effect at midnight
22:00
Trump says US taking in $2 billion a day from tariffs
21:43
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Athena Stavrou
Donald Trump has said the US is taking in $2 billion per day from tariffs after his sweeping measures.
He made the comment without providing details during an event at the White House on Tuesday.
Don’t ‘Panican’! Republicans are finally waking up to Donald Trump
21:32
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Athena Stavrou
As the US president coins a new term for the growing army of critics speaking out about his tariffs policy, Sean O’Grady says that ‘Panicans’ everywhere should rise up and wear the label with pride – ideally, on red baseball caps.
Read the full comment piece here:
Wall Street sinks as hopes wane for tariff delays
21:15
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Athena Stavrou
The S&P 500 closed down below 5,000 for the first time in almost a year on Tuesday.
Stocks tumbled at their fastest pace since the pandemic in the last three days, but investors showed some signs of hope early in the day that Donald Trump would soften his stance or postpone an April 9 deadline for tariffs.
However, investor hopes soon faded for any imminent US delays or concessions on tariffs ahead of a midnight deadline.
Market participants "were optimistic this morning that we would get some sort of sign that we're moving closer to a deal or a compromise with some of these bigger countries or that there would be a delay coming given that so many people wanted to negotiate," said Lindsey Bell, chief market strategist at Clearnomics in New York.
"That doesn't seem to necessarily be the case as we are quickly approaching the midnight deadline and investors are losing confidence."
Watch: Liz Truss blames Canadian PM for market chaos which sparked her downfall
20:46
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Andy Gregory
As commentators liken Donald Trump’s new tariffs policy to the disastrous mini-Budget that sparked her own downfall after just 49 days at Downing Street, Liz Truss has sought to blame the Canadian prime minister for causing the economic meltdown which defined her historically short period in office.
In an interview with conservative American commentator Glenn Beck, Ms Truss said she was “puzzled” that the former central banker had been picked as leader of Canada’s Liberal Party.
The former prime minister said Mark Carney “did a terrible job” as governor of the Bank of England between 2013 and 2020 and “created a lot of the problems that blew up on my watch and that I got blamed for.”
Our political correspondent Archie Mitchell has more in this report.
UN chief worries about ‘devastating’ impact of trade war on poor countries
20:29
,
Andy Gregory
United Nations secretary-general Antonio Guterres has said that he is particularly worried about the most vulnerable developing countries in a trade war unleashed by Donald Trump’s tariffs – warning that the impact would be “more devastating”.
“Trade wars are extremely negative. Nobody wins with a trade war, everybody tends to lose,” Mr Guterres told reporters.
Rebuilding bridges with EU key to weathering economic storm, says UK minister
20:08
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Andy Gregory
Rebuilding relations with the European Union will be key to protecting Britain's national interest during the “very turbulent” global economic headwinds unleashed by Donald Trump’s tariffs, a government minister has said.
Health minister Stephen Kinnock told Sky News’s Politics Hub: “It is very turbulent. Nobody benefits from a trade war. We live in an incredibly deeply integrated global economy with very integrated supply chains and hugely interdependent commercial relationships, so nobody benefits from a trade war.
“We are seeing a prime minister who is really showing leadership, he is engaging with Donald Trump and seeking to negotiate the best possible deal that we can in terms of economic prosperity.
“He’s also rebuilding the bridges that were burned by previous Conservative governments in terms of our relationship with the European Union.
“And we're also developing an industrial strategy to help Britain stand firmly on its own two feet, investing in our own industries, boosting domestic demand, investing in skills in infrastructure rebuilding our manufacturing sector.
“So I think the combination of those three things is going to help us to weather the storm.”
Comment | Whisper it, but UK plc is nearly ready for Trump’s new world order
19:53
,
Andy Gregory
In his latest piece for Independent Voices, business journalist James Moore writes:
At times like these, any port in a storm will do. In the modelling and role-playing currently underway around the globe, the UK suffers in Donald Trump’s trade war, like everyone else. But, cross fingers and toes, things might turn out to not be so bad here as elsewhere.
The reasons for this are laced with irony. Britain is not in the EU any more, thanks to Brexit, so the hit from the White House is reduced. They’re being clobbered with 20 per cent, the British penalty is 10 per cent. That is a sizeable difference.
So, exiting the EU, which has damaged the UK economy, has come good in the end. That, at least, is the Brexiteer interpretation of events. They ignore the first part and focus on the second. They prefer not to dwell on the fact that businesses miss the customs bloc terribly, that companies would dearly love to return to the free movement of goods and people.
Still, let us concentrate on this unexpected “Brexit dividend”, and give thanks.
Musk’s growing public feud with Trump trade adviser over tariffs dismissed by White House: ‘Boys will be boys’
19:29
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Athena Stavrou
The White House is attempting to paper over an ugly online spat between two of Donald Trump’s close confidantes over the tariff policies that have roiled stock markets and disturbed investors over the last six days as Trump himself is doubling down on increasing the taxes Americans will pay on Chinese imports.
Press Secretary Karoline Leavitt on Tuesday dismissed an online war of words between Tesla and SpaceX chief executive turned White House adviser Elon Musk and Peter Navarro, the longtime Trump aide and China hawk who has pressed Trump to tax Americans as a way of punishing foreign countries for trade deficits that are the result of market forces and decades-long trends in globalization of supply chains.
The Independent’s White House correspondent Andrew Feinberg has the full story:
Global trade friction sparked by Trump tariffs could put 85% of NHS medicines at risk, ministers warned
19:14
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Athena Stavrou
The availability of around 85 per cent of NHS medicines could be at risk unless the UK government strengthens its supply chains to prepare for worsening geopolitical tensions, ministers have been warned.
Manufacturers in Britain have urged the government to treat it as a defence issue, with the supply of drugs such as antibiotics under threat if global tensions continue to rise as a result of Donald Trump’s decision to ramp up tariffs across the world.
If pharmaceutical and medical suppliers are hit by a US-led tariff war, the NHS could have to pay more for medicines, another expert has said.
Read the full report:
Trump will be 'incredibly gracious' if China wanted to make a deal
19:00
,
Athena Stavrou
Donald Trump believes that China has to make a deal with the United States concerning additional tariffs that are set to go into effect on Wednesday, the White House press secretary has said.
"The Chinese want to make a deal. They just don't know how to do it," Karoline Leavitt told a news briefing on Tuesday.
"He believes China has to make a deal with the United States."
If China reaches out, she added, Trump would be "incredibly gracious, but he's going to do what's best for the American people."
Watch: White House comments 'Boys will be boys' on Elon Musk and Peter Navarro feud
18:53
,
Athena Stavrou
US 'punches back harder', Leavitt says
18:45
,
Athena Stavrou
When asked if the additional 50 per cent tariff would be imposed on China tonight, the White House press secretary said: "It will be going into effect at 12.01am tonight. So effectively tomorrow.”
She added: "The president believes that China wants to make a deal with the US. China has to make a deal with the US.
"It was a mistake for China to retaliate. When America is punched he punches back harder."
China to be hit by 104% tariff tomorrow, White House confirms
18:31
,
Athena Stavrou
The White House has confirmed that the US will impose a 104 per cent tariff on China from 12:01am ET on Wednesday.
Donald Trump’s press secretary Karoline Leavitt told reporters on Tuesday afternoon that the measures will come into place after Beijing did not lift its retaliatory tariffs on US goods by a noon Tuesday deadline.
'Boys will be boys', White House press secretary dismisses row between Musk and Navarro
18:31
,
Athena Stavrou
Elon Musk has launched an extraordinary attack on Donald Trump’s economic adviser Peter Navarro earlier, calling him “truly a moron” and “dumber than a sack of bricks” on X over the administration’s controversial tariff policy.
When asked if Trump was concerned about the comments, the White House press secretary Karoline Leavitt dismissed the comments.
She told reporters: “These are obviously two individuals who have very different views on trade and on tariffs.
“Boys will be boys and will let their public sparring continue and you guys should all be very grateful that we have the most transparent administration in history.”
Countries 'falling over themselves' to negotiate deal with Trump - White House
18:13
,
Athena Stavrou
The White House press secretary Karoline Leavitt is holding a press briefing now.
She said nearly 70 countries have reached out to Donald Trump following his tariff announcement and are “falling over themselves” to secure a deal with the US.
White House to hold press briefing briefly
18:07
,
Athena Stavrou
The White House press secretary Karoline Leavitt is due to hold a press conference shortly.
We are expecting to hear more about whether Trump will impose further tariffs on China from tomorrow.
Minutes before the briefing is due to begin, Fox News’ business corespondent reported that the tariffs would go into effect at midnight tonight.
We will update you shortly.
UK should not ‘jump with both feet’ to retaliate against Trump tariffs – Starmer
17:51
,
Athena Stavrou
The UK should not “jump in with both feet” to retaliate against Donald Trump’s trade tariffs, Sir Keir Starmer has said.
Speaking to the Liaison Committee on Tuesday – the last day before MPs’ Easter recess – the Prime Minister continued to call for calm heads.
“My instinct is that we shouldn’t jump in with both feet to retaliate. So in that sense, I’m not changing my plans,” Sir Keir said.
“Obviously we have to keep our options on the table and do the preparatory work for retaliation if necessary. But I think that trying to negotiate an arrangement which mitigates the tariffs is better.”
The tariffs are not a “temporary passing phase” but part of a “changing world order”, the Prime Minister added.
Meloni to visit Trump next week
17:37
,
Athena Stavrou
Italy’s prime minister has said she will visit Washington later this month to discuss tariffs with Trump.
Giorgia Meloni said she will meet the US president on April 17, after the Italian government unveiled plans to use 11 billion euros in cohesion funds to offset the impact of the tariff policy.
FTSE100 climbs higher after days of plummeting
17:21
,
Athena Stavrou
London’s FTSE 100 index climbed firmly higher as global markets recovered ground on hopes for potential trade deals between the US and other countries.
The index was up 2.71%, or 208.45 points, to 7,910.53 at the close of trading.
In the US, the Dow Jones index was up 2.45%, while the S&P 500 finished 2.36% higher.
US' top trade representative "doesn't trust economists predictions'
17:17
The nation's top trade representative has said he does not trust economists’ warnings, as major banks warn of recession or inflation.
US Trade Representative Jamieson Greer said he did not trust the predictions as there was no inflation during Trump’s first term.
What has Donald Trump threatened China with?
16:55
,
Athena Stavrou
Donald Trump has threatened to impose an extra 50 per cent levy on top of the existing 54 per cent tariff on Chinese imports.
The US president said he would introduce the measures if Beijing does not withdraw the 34 per cent tariffs it had imposed on US products last week.
This means the total new levies could climb to 104 per cent on Chinese goods imported into the US this year.
The US president said China would need to back down on Tuesday, if it did not want to see the measures imposed on Wednesday.
|If China does not withdraw its 34 per cent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 per cent, effective April 9th,” he wrote on Truth Social.
Trump tariffs: Who will be hit hardest by China-US trade war as president threatens 104% levy?
16:27
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Athena Stavrou
Last week China retaliated with 34 per cent counter-tariffs on imported US goods, in the wake of President Donald Trump’s “Liberation Day” trade war.
On April 2, Mr Trump announced an extra 34 per cent tariff on all Chinese goods imported to the US, on top of an existing 20 per cent levy; bringing tariffs to 54 per cent.
Now, Mr Trump is threatening an extra 50 per cent tariff on Chinese goods if Beijing does not scrap retaliatory measures by today, Tuesday 8 April - taking tariffs to an unprecedented 104 per cent on Chinese imports, a White House official confirmed.
As Trump threatens 104% tariffs on China, Alicja Hagopian and Millie Cooke look at what industries will be hardest hit:
Starmer reiterates plan to maintain digital service tax in talks with US
16:16
,
Athena Stavrou
The prime minister has said he wants the maintain a digital service tax, after reports suggested it could be abolished as part of trade deal talks with the US.
Sir Keir told the Liaison Committee that AI and other technology companies were "very powerful".
He added: "In relation to trade talks, obviously there are questions about the appropriate way to tax digital services, etc. There are questions about how technology impacts with free speech.
"I've been very clear in my view that we need to have arrangements for a digital tax of some sort, and equally we need to be pioneers of free speech, which we have been for very many years in this country.
"But at the same time, we rightly protect under the Online Safety Act - further provisions of which are coming into force pretty quickly - and when it comes to dealing with paedophiles and protecting children, I take a pretty strong line that we take the necessary measures in order to do so."
Trump has been clear he won't do tariff exemptions in near term, Greer says
15:57
,
Tara Cobham
US Trade Representative Jamieson Greer has said Donald Trump has been clear that he will not do tariff exemptions in the near term.
Labour sister party calls for focus on communities in response to Trump tariffs
15:43
,
Political correspondent Archie Mitchell
Labour’s hugely influential sister party has called for the government to ramp up its focus on communities in response to Donald Trump’s tariffs.
The Co-op Party, represented by 41 Labour MPs including business secretary Jonathan Reynolds, said community and member-owned businesses must be central to the government’s response to the unfolding trade war.
Labour committed in its manifesto to doubling the size of the co-operative sector. But Co-op general secretary Joe Fortune said Mr Trump’s tariffs are an opportunity for a “new economic settlement for communities”.
“Now is the time for the Government to back what works: putting power and resources in the hands of communities to shape their own future,” Mr Fortune said.
He added: “Co-operative businesses keep wealth local - they are more resilient, more long-lasting and more equitable. And crucially, they put both power and wealth in the hands of working people.”
What happens next on the stock market after ‘bloodbath’ of Trump’s tariffs?
15:36
,
Tara Cobham
After what has seemed like non-stop falls in the global stock markets since Donald Trump announced his tariff plan last week, the first signs of green were on show again on Tuesday.
Overnight, both China’s Hang Seng and Japan’s Nikkei 225 ended in positive territory, the latter as much as six per cent up. In the UK, the FTSE 100 was up more than two per cent after two hours of morning trading, while in Europe the CAC 40, the DAX and the Euronext were all up between 1.3 to 1.7 per cent.
Even Stateside, where the stock market rout has been so pronounced following the escalation of Trump’s potential trade war, S&P 500 futures were showing a rise of more than 1.3 per cent.
Investors were finally getting some relief from the sharp drops and some were even cautiously looking to buy back in. But is this really the end of the stock market’s reaction to the tariffs? Business and money editor Karl Matchett reports:
FTSE 100 on track for best day in more than three years
15:21
,
Tara Cobham
The FTSE 100 is on track to having its best day in more than three years.
The gains are set to bring some relief to investors after stock prices around the world plunged in value since US President Donald Trump's tariffs announcement last Wednesday.
US prioritising allies not China in trade talks, economic adviser Hassett says
15:05
,
Tara Cobham
US trade negotiators are prioritising allies as they move forward on trade and are focused on big trading partners that have had big trade surpluses for years with the United States, White House economic adviser Kevin Hassett said on Tuesday.
"The president will decide when and if to talk with China, but right now, we've received the instruction to prioritize our allies and our trading partners like Japan and Korea and others," Hassett said in an interview with Fox News.
UK is keeping its options on table for retaliating to US tariffs if necessary, Starmer says
14:59
,
Tara Cobham
The UK is keeping its options on the table for retaliating to US tariffs "if necessary", Sir Keir Starmer has told a senior group of MPs.
Asked about the Government's response to the tariffs, the Prime Minister told the Liaison Committee: "Obviously we have to keep our options on the table and do the preparatory work for retaliation if necessary.
"But I think that trying to negotiate an arrangement which mitigates the tariffs is better."
He insisted Donald Trump's tariffs were not a "temporary passing phase" but part of a "changing world order".
The Prime Minister said he wanted to ensure the UK economy is "resilient and thriving" and said changes to the zero emissions vehicle mandate and clinical trials announced on Monday were aimed at paving the way for this.
Asked if the Government could intervene to prevent recession, similar to steps taken during the Covid pandemic, the Prime Minister emphasised ministers were prioritising support that was "more in the nature of breaking down barriers that are in the way" rather than spending cash.
What counter-measures is China considering in response to US tariffs
14:54
,
Tara Cobham
It is not yet clear what counter-measures Beijing is planning to impose, although the BBC reported, citing state media, that the US agricultural sector could be impacted, including a potential total ban on poultry.
There are also reports the cooperation between the two countries on tackling the fentanyl trade could end.
And a possible ban on US films being shown in cinemas in China has also been suggested, according to the broadcaster.
All options on the table in relation to Scunthorpe, Starmer confirms
14:44
,
Political correspondent Archie Mitchell
Political correspondent Archie Mitchell writes:
Sir Keir Starmer has said the nationalisation of British Steel’s Scunthorpe plan is “on the table”, with the closure of its blast furnaces looming.
There have been calls for temporary nationalisation amid fears of thousands of job losses.
Asked about fears over the potential closure of the plant, the prime minister said: “I know first hand the impact that any loss of capacity at Scunthorpe would have on the workforce and the community and the country.
“We will keep talking. We have made an offer, but all options are on the table.”
Will interest rates be affected by Trump tariffs and when is the next Bank of England review?
14:43
,
Tara Cobham
Interest rates have been back on a downward path in 2025, but the going is slow and at the last review the Bank of England (BoE), which decides the base rate, froze them at 4.5 per cent.
Altering the base rate is one of the ways the BoE keeps inflation under control, helps to stimulate spending and generally aims to control economic growth in line with government aims.
However, along with domestic matters, the UK economy is affected by global events - and the potential trade war as a result of Donald Trump’s tariffs and retaliations to the same could well impact the BoE’s decision.
Business and money editor Karl Matchett takes a look:
ANALYSIS: Coming hours should tell us much more about investor sentiment in US
14:41
,
Business and money editor Karl Matchett
Business and money editor Karl Matchett writes:
The US stock markets are open and the coming hours should tell us much about investor sentiment.
That's clearly slightly more positive today than the past few days, as the S&P 500 opens more than three per cent higher and the Nasdaq follows suit at 3.65pc, but it's still worth being aware that any comments or updates across the workday Stateside can quickly turn matters in either direction.
Treasury Secretary Scott Bessent pointed to the start of bilateral trade talks with Japan as a positive point, mitigating the negative tones of China's accusations of the tariffs being a "mistake".
Today will begin to show whether investors feel the worst has now passed in quick fashion, or if this is merely a slight reprieve before uncertainty reigns again.
PM: There is ‘a whole host of things’ we are looking at
14:40
,
Political correspondent Archie Mitchell
Political correspondent Archie Mitchell writes:
Sir Keir Starmer has said there is “a whole host of things” the government is considering beyond what it has announced so far in response to the trade war.
The prime minister was asked what changes he is considering “other than what you’ve already put in place”.
Sir Keir added: “Oh yeah, there is a whole host of things. I'm starting with the sectors that are most obviously impacted.
“I've started with the three sectors likely to be most impacted. But I'm absolutely clear in my own mind that what we're doing in terms of going further and faster needs to be across the board.”
Starmer: Let’s not jump into a trade war with both feet
14:36
,
Political correspondent Archie Mitchell
Political correspondent Archie Mitchell writes:
Sir Keir Starmer has cautioned against Britain jumping in “with both feet” in retaliating against Donald Trump’s tariffs.
The prime minister said “we have to keep all options on the table and do preparatory work for retaliation if necessary”. But the PM said trying to negotiate an agreement to mitigate or remove the tariffs is better.
“I don’t think what has happened in the last few days is a temporary passing phase,” the PM added.
He said: “I think it is a changing world order, the world is changing before us as a new era, and therefore, I do think there are two ways in which our plans don’t so much change as turbocharge.”
New York Stock Exchange opens up
14:35
The New York Stock Exchange has opened up amid ongoing global market volatility today.
The Dow Index, S&P 500 Index and NASDAQ Index were all up more than 3 per cent within minutes of trading beginning.
US stock market set to open in few minutes
14:29
,
Tara Cobham
The US stock market is set to open in a few minutes.
Global markets continue to be volatile amid the fallout from the US president’s sweeping tariffs.
Trump claims China 'badly wants to make a deal'
14:28
,
Tara Cobham
Donald Trump has claimed China “wants to make a deal, badly”.
However, in the post on Truth Social, he claimed China just “don’t know how to get it started”.
Chancellor rejecting calls for 'Buy British' campaign is 'insult' to businesses on brink, say Lib Dems
14:23
,
Political correspondent Archie Mitchell
Responding to the Chancellor rejecting Liberal Democrat calls for a ‘Buy British’ campaign as “inward looking”, Liberal Democrat Treasury spokesperson Daisy Cooper MP said: “The Chancellor’s comments are an insult to businesses being pushed to the brink by Donald Trump’s trade war. This is completely out of touch with the British people who are rallying behind local businesses in their time of need.
“Instead of talking down our high-streets, the Government needs to send a clear message to the White House that they stand squarely behind British businesses and against Trump’s damaging tariffs.
“We Liberal Democrats have been clear that we want to see the Government going further and faster on working with our European and Commonwealth allies at the same time as launching this Buy British campaign as part of a national effort to boost British businesses at home and abroad.
“Buying British is a powerful way that people can get behind local businesses and show that as a country we won’t give in to Donald Trump’s bullying.”
Watch live: Starmer faces grilling from MPs in ongoing Trump tariff turmoil
14:22
,
Tara Cobham
Farage signals he would not eat chicken washed with chlorine imported from US under trade deal
14:18
,
Tara Cobham
Nigel Farage has signalled he would not eat chicken washed with chlorine if it was imported from the US into Britain as a result of a future trade deal.
Asked during a visit to County Durham, if he would eat chlorinated chicken, the Reform UK leader told reporters: "I have got a confession to make: I eat chlorinated salad - I bought a bag last week from a major leading supermarket. Every single bag of salad you buy in Britain is chlorine-treated.
"Do I like the sound of chlorinated chicken? No, not very much, but do you know what the most important thing with all of this is?
"If we want to free the whole thing up, provided food is labelled properly, consumers can make their own decisions.
"Frankly, we wouldn't be buying much chlorinated chicken because the cost of it being produced in America and being shipped here means it wouldn't be competitive anyway."
EU says all instruments are on the table to avoid trade war, including energy
14:15
,
Tara Cobham
The European Union has many instruments on the table to avoid a trade war with United States, including a rise in US energy imports, a EU spokesperson said on Tuesday.
"We are absolutely ready to discuss and negotiate with the US on energy," she said.
China initiates WTO dispute over US tariffs
14:1
