The White House has insisted that trade partners ‘need the United States of America’ as global share markets fluctuate after China increased its tariffs on US imports to 125 per cent.
Donald Trump’s press secretary said over 75 countries had approached the US government to negotiate fresh trade deals in the wake of his “Liberation Day” measures.
“They've made it very clear. They need the United States of America. They need our markets. They need our consumer base,” she told a press briefing after China vowed to ‘fight to the end’ in the trade war.
China’s tariff hike, hitting back against Donald Trump's decision to hike duties on Chinese goods to 145 per cent, will come into effect on Saturday.
The US president said America was “doing really well” on its tariff policy on Friday afternoon while Chinese President Xi Jinping made his first public comments on the tariff war, urging the European Union to join China to “oppose unilateral acts of bullying”.
Reacting to the news, the US dollar index fell 1.2 per cent to 99.50, marking its lowest level since April 2022.
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Key points
- Beijing vows to 'fight to the end' in US trade war
- 'They need the US markets to survive', White House claims
- European stocks trending down following China tariff announcement
- China lifts tariffs on US goods to 125% up from 84%
- Xi Jinping urges EU to join forces in opposing Trump’s ‘unilateral bullying’
- Donald Trump warns that tariffs will return in 90 days if no deals struck
Starmer holds calls with regional leaders about tariffs
20:43
,
Athena Stavrou
Sir Keir Starmer has held calls with the first ministers of the devolved administrations and the regional mayors to “update” them on the Government’s approach towards global tariffs, Downing Street has said.
A Number 10 spokesperson said: “The Prime Minister led calls with the first ministers, deputy first minister and regional mayors today to update them on the UK’s Government’s calm, pragmatic and cool-headed approach to recent global tariffs.
“These discussions focused on how across the UK – whether in Belfast, Birkenhead, Blythe or Bute – partnership at all levels will be required to deliver for working people, in the national interest.”
India and US progress trade talks
20:16
,
Rachel Clun
India and the US have finalised terms of reference for talks over a bilateral trade agreement.
An Indian trade official said there was a possibility the countries could come to a “win-win” deal in the next 90 days.
"We are far ahead in trade talks with the U.S. compared to other countries ... there are lots of possibilities in 90 days," the official told Reuters.
India is one of America’s largest trading partners in Asia, but Donald Trump had hit the country with what he said was a “discounted” reciprocal tariff of 26 per cent.
Mr Trump had repeatedly accused India of “very very high tariffs” and called it the “tariff king” for its average levy on American goods of 52 per cent.
19:50
,
Athena Stavrou
A senior JPMorgan Asset Management investment strategist said he has held back on some of his public comments on US tariffs due to concerns about the impact his full opinions would have on the Wall Street bank.
In a webinar titled "The 2025 Tariff Shock," Michael Cembalest, chair of market and investment strategy and a Wall Street veteran, said he had not been able to fully express his views on the potential impacts of the tariffs on markets and economies.
"This is the first time I've ever had to do a call where I had to think about the things that I was saying, not just in terms of how they reflect our views on markets and economics," Cembalest said in comments made towards the end of the webinar.
"But I had to think about how they might reflect on the firm and some of its colleagues at a time when people are being held accountable for their views and the things that they say in ways that they probably shouldn't be.
"So I've said most of what I wanted to say on this call but not all of it."
Trump optimistic on reaching deal with China, White House says
19:15
Donald Trump is optimistic about reaching a trade deal with China, White House press secretary Karoline Leavitt said on Friday, amid an escalating trade war between the two economic giants that has battered markets.
"The president has made it very clear he's open to a deal with China," Leavitt told a press briefing. "If China continues to retaliate, it's not good for China," she added.
'They need the US markets to survive', White House gives update on tariff negotiations
18:43
,
Athena Stavrou
The White House has insisted that trade partners ‘need the United States of America’.
Donald Trump’s press secretary said over 75 countries had approached the US government to negotiate fresh trade deals.
“They've made it very clear. They need the United States of America. They need our markets. They need our consumer base,” she told a press briefing.
She added: “We've heard from South Korea. We've heard from Japan. The president has spoken to Vietnam. We have Italy coming to the White House next week.
“There's a reason for that, Sean, and it's because they need the United States of America and our business model and our markets to survive, and the President is using that leverage to our advantage.”
Deal on tariffs could be 'weeks away'
18:36
,
Athena Stavrou
Journalists in the White House briefing room say they have been told by government sources that the first deal with a country on a tariff deal is “weeks away”.
When asked whether this was true, Trump’s press secretary did not reveal which country this could be, but said: “Very good progress has been made.
“Jameson Greer was on television this morning, and I spoke to him, and he confirmed that more than 15 offers are already on the table, which is remarkable, in just a mere matter of days.
“And as I said earlier, we've heard from more than 75 countries around the world.”
'He will punch back harder' - Trump's press secretary
18:31
,
Athena Stavrou
Donald Trump’s press secretary has been answering questions on the president’s plans for Chinese tariffs.
Karoline Leavitt said Trump was “optimistic” about a deal being struck, but did not give reasoning behind this.
She added: “The President made it very clear, when the United States is punched, he will punch back harder.
“He hopes to make a deal that benefits the American worker and our companies that have been ripped off for far too long, and he's finally taking bold and courageous action to do that.”
US to use tariff revenue to pay debts
18:25
,
Athena Stavrou
When asked about plans the US government had for money raised by tariffs, Karoline Leavitt said: “The president has spoken about the trillions of dollars that he expects in revenue from tariffs, and how we can use it to pay down our debt and to ensure that we are no longer faced with a triple crippling national debt in the trillions that is going to bankrupt our nation for future generations.
“So that money coming back home will make America in the green rather than in the red, which any small business owner across the country, I believe, can appreciate.”
'Phone ringing off the hook' - White House on trade negotiations
18:22
,
Athena Stavrou
Donald Trump’s press secretary Karoline Leavitt said the White House’s phones have been “ringing off the hook” as over 75 countries try to negotiate a trade deal with the US.
“More than 75 countries have now reached out to the Trump administration, eager to address the trade issues that have exploited America and hurt our workers,” she said.
“In the process, the phones have been ringing off the hook to make deals, and these countries wisely heeded president Trump's warning not to retaliate, and as a result, they were rewarded with a 90 day pause and substantially lower reciprocal tariff rates during this period so potential solutions can be achieved.”
White House highlights economic success amid market uncertainty
18:19
,
Athena Stavrou
The US dollar index fell 1.2 per cent to 99.50 on Friday, marking its lowest level since April 2022.
But the White House has insisted the American economy is on the up.
Donald Trump’s press secretary Karoline Leavitt said in a press briefing: “More excellent economic news that was released yesterday, the Consumer Price Index report showed inflation fell to 2.4 per cent in March, smashing expectations for the second straight month in a row. This marked the first drop in consumer prices dating all the way back to the COVID pandemic.
Prescription drug prices saw the largest monthly decline on record.
“Prices for airfare, used vehicles and car insurance all decreased as well, and energy prices fell 2.4 per cent in March, driven by plummeting gas prices around the country.”
White House press briefing begins
18:17
,
Athena Stavrou
Donald Trump’s press secretary Karoline Leavitt has begun her press briefing.
She will answer questions on behalf of the White House.
She begun the press conference speaking about Donald Trump’s health check up and the release of US-Russian dual national, Ksenia Karelina, who had been detained in Russia, in a prisoner swap in Abu Dhabi.
White House press briefing to begin soon
17:57
,
Athena Stavrou
We are expecting the White House to begin a press briefing in the next few minutes.
Donald Trump’s press secretary Karoline Leavitt will be answering questions from journalists as the tariff row between the US and China continues.
FTSE 100 closes on a positive
17:45
,
Athena Stavrou
London’s FTSE 100 share index rose by 0.64%, or 50.93 points, to 7,964.18 at the close of trading on Friday.
Meanwhile, in the US, the Dow Jones and the S&P 500 were both slightly higher – up 0.13% and 0.27% respectively.
'Give a bully an inch, he will take a mile': China
17:35
,
Rachel Clun
Chinese foreign ministry spokesperson Lin Jian echoed comments made by the country’s president earlier today, saying that Beijing was responding to “bullying behaviour” from the US with its increased tariffs.
“China is a responsible country. We’ve taken countermeasures against the bullying behavior of the U.S., not only to safeguard our legitimate rights and interests, but also to uphold international rules and order, the common interests of countries in the world, and international fairness and justice,” He said.
“In the face of U.S. hegemony and bullying, remember this: give the bully an inch, he will take a mile.”
In the face of US hegemony and bullying, remember this: pic.twitter.com/poeALlGGy8
— Lin Jian 林剑 (@SpoxCHN_LinJian) April 11, 2025
China says trade wars have no winners
17:11
,
Rachel Clun
China’s foreign ministry spokesperson Lin Jian said trade wars have no winners, after Beijing lifted its tariffs on US goods to 125 per cent.
The hike was in response to the US lift its levies on Chinese goods to 145 per cent, despite introducing a 90-day pause on all other tariff increases over 10 per cent.
Here’s what Mr Lin said in his daily press conference on Friday:
China has repeatedly stated its solemn position on the tariff issue. Tariff and trade wars have no winner. China does not want to fight these wars but is not scared of them.
Let me stress that if the U.S. truly wants to resolve the issue through dialogue and negotiation, it should stop maximum pressure and capricious and destructive behavior. This never works with China.
For any dialogue to happen, they must be based on equality, respect and mutual benefit. If the U.S. is determined to fight a tariff and trade war, China’s response will continue to the end.
EU commisioner says US will be 'first and most hit by tariffs'
16:43
,
Rachel Clun
The European Union’s economic commissioner has pointed out the US is hurting itself first through widespread tariff increases.
Valdis Dombrovskis has been at a meeting of European economic and finance ministers and central bankers in Poland, and said the group welcomed the 90-day pause on tariffs over 10 per cent.
“What is clear, and what ministers in today's meeting agreed on, is that the US itself will be the first and most hit by the tariffs,” he said following the Warsaw meeting.
“The imposition of tariffs will weaken the US economy by reducing consumers' purchasing power, real wages and making imported intermediate goods for production more expensive.”
The EU Commissioner for Economy and Productivity said a loss of investor confidence could also hit American economic activity, with EU modeling showing US GDP would be reduced by 0.8 to 1.4 per cent until 2027, while Europe’s GDP would only take a 0.2 per cent hit.
“Given the extraordinary uncertainty and frequently changing tariff decisions, our model simulations cannot be fully precise,” he said.
“But they do show the overall trend that tariffs are damaging for prosperity.”
Next two days 'vital' to tariff negotiations, Ireland's deputy premier says
16:19
,
Rachel Clun
Ireland’s deputy premier said negotiations over the weekend between the European Union and the US will be “vital” to reaching an agreement on tariffs.
European commissioner for trade and economic security, Maros Sefcovic is travelling to Washington for talks on Sunday with US officials over tariffs.
The trip comes after Donald Trump announced a 90-day pause on higher levies, and the EU then announced it would also pause the introduction of countermeasures.
Simon Harris said it was important to use the time wisely.
"This is a vital weekend, and I think there isn't an hour to lose, because we have a 90-day pause," he said on Friday.
"But 90 days can come and go quickly, and it's really important that there's very intensive engagement now between Europe and between the United States.
While the US has paused placing 20 per cent tariffs on EU goods, Mr Harris noted the broader 10 per cent duties remained in place, as well as 25 per cent taxes on vehicles, steel and aluminium.
"It cannot be good for the global economy. So it is really important that we actually utilise this pause and put it to good use, “ he said.
Recession risk remains, business leaders say
15:57
,
Rachel Clun
As the US stock markets continue to fluctuate, business leaders have warned that the threat of a recession remains higher than before the tariffs were first announced.
"Recession risk is much, much higher now than it was a couple [of] weeks ago," said Adam Hetts, global head of multi-asset at Janus Henderson.
BlackRock chief executive Larry Fink told CNBC there would be a widespread economic slowdown.
“I think we’re very close, if not in, a recession now,” Fink said.
US markets open lower after China's trade retaliation
15:38
,
Karl Matchett
Business and Money Editor Karl Matchett has taken a look at the US stock markets shortly after they opened:
The S&P 500 has jumped up and down sharply in the opening hour of trading, above and below the flat line, but it's now down 0.8 per cent - with the Dow Industrial similar and the Nasdaq 0.9 per cent down.
The markets opened after China announced it was retaliating to higher US tariffs by raising its levies on American goods to 125 per cent.
Individually, there are some bigger falls on the board already: Tesla has dropped to more than 2.5 per cent in the red, Workiva is down three per cent and Bank of America is down 1.6 per cent.
But Microsoft, Apple and Nvidia, as other examples, are all flat or even slightly up - 1.25 per cent up, in the case of the latter, so it's far from the across-the-board drop we've seen on other days. So far, at least.
WTO chief economist warns tariffs have 'unintended consequences'
15:21
,
Rachel Clun
The World Trade Organisation’s chief economist says tariffs can have “wide-ranging, and often unintended, consequences”.
Ralph Ossa said tariffs are seemingly simple: they are a tax on imported goods. So a 10 per cent tariff on a product with a world price of $50 would become $55 in the domestic market, with the $5 collected as tax revenue by the local government.
However, he said these taxes can have ripple effects throughout the economy, “altering prices, wages, exchange rates and trade patterns”.
As tariffs return to the trade policy agenda, it is worth recalling what economics has long understood: tariffs are not just a tool for raising revenue or protecting domestic industries – they are a policy lever with wide-ranging, and often unintended, consequences,” he said in analysis for the WTO.
“Their appeal in the short term can obscure longer-term costs to inflation, competitiveness and international cooperation. In a world of growing trade tensions, a clear-eyed view of those trade-offs is more important than ever.”
Risk of global recession remains, economists say
15:06
,
Rachel Clun
The US president might have delayed the most aggressive parts of his sweeping tariff hikes, but leading economists and analysts say the risk of a global recession has not gone away.
Economist Pau S Pujolas - who accused the US government of misinterpreting his work earlier this week - said that even if Donald Trump decides not to reintroduce the high tariffs, the global economic risk remains “until either Trump stops playing the tariff game, or Congress removes the power vested on the President”.
“Yes, the damage is done. Global value chains are suffering with all the recklessness, uncertainty is a good friend of recession,” he told The Independent.
Dan Coatsworth, investment analyst at AJ Bell, said the past week of uncertainty alone could have had “a major negative impact on spending” and hurt economies, but that uncertainty was continuing.
“The risk of a global recession remains high until there is more clarity on tariffs longer term,” he said.
Will the bonds market bring down Donald Trump?
14:44
,
Rachel Clun
US President Donald Trump said he had been watching the bond market before deciding on a U-turn on his aggressive tariff hikes.
“The bond market is very tricky, I was watching it. But yeah, I saw last night where people were getting a little queasy,” he said, announcing a 90-day pause.
Data Correspondent Alicja Hagopian has looked at why bond market turmoil spelt serious trouble, not just for Mr Trump, but for the world:
Donald Trump’s dramatic row back on tariffs has echoes of Liz Truss’s downfall - but will the market turmoil affect his future in the White House?
Trump says America 'doing really well' on tariffs
14:24
,
Rachel Clun
Donald Trump has defended his tariff policies.
Posting on his Truth Social, the US President said: “We are doing really well on our TARIFF POLICY.”
“Very exciting for America, and the World!!! It is moving along quickly,” he wrote.
Chinese foreign minister invokes Mao in jabs at US tariffs
13:59
,
Barney Davis
China's Foreign Ministry spokesperson Mao Ning has been quoting Chairman Mao on social media showing the strength of anti-US sentiment after the tariffs.
She posted a black-and-white clip taken during the Korean War when Mao told the US that "no matter how long this war lasts we will never yield".
Ning added her own comments: "We are Chinese. We are not afraid of provocations. We won't back down."
In another post, she quoted Mao calling America a “paper tiger”.
China never bluffs—and we see through those who do. pic.twitter.com/vwghvlJ2w0
— Mao Ning 毛宁 (@SpoxCHN_MaoNing) April 11, 2025
French PM warns China cannot replace US on trade
13:48
,
Rachel Clun, with Reuters
French Prime Minister Francois Bayrou said it was ‘dangerous’ to think China could replace the US as a trading partner.
"The idea that the United States could be replaced by China is a terribly dangerous idea," Bayrou said on Friday during a visit to a fair for cheese and wine.
His comments come after Chinese President Xi Jinping told Spain’s prime minister that China and the EU must join together to oppose “unilateral acts of bullying”.
Why gold prices have hit a record high
13:33
,
Rachel Clun
With share markets fluctuating wildly amid the Trump administration’s on-again, off-again tariff hikes and the escalating trade war between the US and China, investors have flocked to gold.
Gold is seen as a safe asset during times of crisis, and on Friday the price of bullion hit a record high of $3,227.07 per ounce.
Here’s how investors buy gold, and what affects the market for bullion.
German Birkenstocks, beer, and Riesling wine caught in US tariff crosshairs
13:29
,
Barney Davis
President Donald Trump's sweeping tariffs are poised to inflate the prices US shoppers pay for many German products - from Birkenstock sandals to Paulaner beer and Riesling wine.
Trump's tariff offensive is testing relations between the two allies, threatening their two-way trade and risking major damage to an already limping German economy.
And for German companies, it will test whether US consumers - long willing to pay more for the renowned quality of the country's goods - can stomach even higher prices at a time when US policies threaten to spark a recession.
"Both European producers and US consumers will suffer," said Rodger Wegner, president of the Association of Exporting Breweries, which represents German beer brands including Karlsberg, Lowenbrau and Radeberger.
Germany, like most of the world, is now subject to a 10 per cent tariff on its exports to the United States. But a 20 per cent rate is still looming despite a 90-day pause.
The duties could not come at a worse time for Europe's biggest economy, with economists predicting the trade turmoil could put it on track for a third year of recession for the first time in its history.
Higher tariffs blamed in part for UK car jobs going
13:17
,
Rachel Clun
British-based car maker Lotus has announced it is laying off up to 270 workers, blaming in part the Trump Administration’s higher tariffs for the need to cut costs.
The company remained “committed to the UK”, but a spokesperson told the BBC that a restructure was needed “amid volatile and evolving market conditions including the US tariffs and shifting consumer demand for sports cars”.
Lotus, based in Norfolk, is owned by Chinese company Geely Holding, and the Lotus spokesperson said it plans to share more resources with the larger conglomerate.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders said the sector had already been facing immense pressures, but the new headwinds were “severe”.
“Automotive is acutely impacted by the tariffs levied, which remain at the forefront of UK minds,” he said in a statement, urging the UK government to do more to support the sector.
Tariff pause 'remains fragile': Macron
13:02
,
Rachel Clun
Emmanuel Macron said Donald Trump’s 90-day pause on increasing tariffs was an “opening for negotiation”, but warned the pause “remains fragile”.
“Fragile, because 90 days of pause means 90 days of uncertainty for our businesses, on both sides of the Atlantic and beyond,” he said on social media.
The French President pointed out the 25 per cent duty on steel, aluminium and vehicle exports to the US remained in place, as well as the broad 10 per cent tariffs on many trading partners.
Mr Macron said Europe’s goal was to remove the “unfair tariffs” and come to a balanced agreement, but said the bloc would continue to work on countermeasures.
“France is ready. Europe must be too. Let us stay clear-eyed, united, and determined to defend our interests,” he said.
What are the potential harms of the 10 per cent tariffs?
12:47
,
Rachel Clun
The broad 10 per cent tariffs Donald Trump has put on goods from most countries that export to America will have many knock-on effects, economists said.
Independent economist Chris Richardson told The Independent that higher tariffs would encourage companies to reassess where they were making things.
“If we are rejigging who makes what and where as a result of tariff changes all around the world, then that’s a painful thing to do, it's expensive, it's slow, it will slow the world economy, and come at a cost,” he said.
Professor Justin Wolfers said that by increasing tariffs, the US was saying it no longer wanted to cooperate with other countries on trade.
“Yes, you could look at China as, ‘Oh, my God, they're taking from us’, but actually a different way, and more productive way, is to say that they're co-producing with us,” he said.
“And so destroying that relationship destroys the ability for us to work together.”
China will 'fight to the end' in trade war with US
12:34
,
Rachel Clun
Beijing has vowed to “fight to the end” in an escalating trade war with the US.
Announcing it would lift tariffs on US goods to 125 per cent, a Chinese Finance Minister said the Trump administration’s repeated increase to tariffs “will become a joke in the history of the world economy”.
"However, if the US insists on continuing to substantially infringe on China's interests, China will resolutely counter and fight to the end,” the spokesperson added.
The US has lifted tariffs on Chinese goods to 145 per cent, and earlier China’s foreign ministry spokesperson said that Beijing would ignore any further increases.
“Given that US exports to China are already commercially unviable at current tariff levels, any further US tariff hikes on Chinese goods will simply be ignored,” Lin Jian said.
EU 'will defend our economy', commissioner warns
12:18
,
Rachel Clun
The European Union’s economic commissioner warned the bloc would ‘defend our economy’ if the US decides to bring higher tariffs back.
EU Commissioner for Economy and Productivity Valdis Dombrovskis spoke in Warsaw ahead of a meeting of European economic and financial affairs ministers and central bank governors.
“Obviously, the most urgent topic we are going to discuss is the questions related to the Trump tariffs and its macroeconomic implications, and also the EU's response,” he said.
“If we do not see movement also from US side and willingness to move away from this kind of tariff policy, we will have to defend our economy.”
Mr Dombrovskis said the global economic outlook was becoming more unpredictable, and the remaining tariffs would harm the global economy.
“It's also worth noting that the situation remains very uncertain and volatile. Just a few days ago, 20 per cent tariffs were announced against the EU, now for 90 days, it's announced it's only going to be 10 per cent tariffs,” he said.
"We should not forget that the 10 per cent reciprocal tariffs remain in place for almost all countries and they represent a blow to the global economy.”
Analysis: Market movement shows uncertainty is the only certainty for now
12:05
,
Karl Matchett
Business and Money Editor Karl Matchett is watching trading markets today:
If any further indications were required about how nobody has a clue over the current outlook, today's trading in the stock market should do the trick.
The FTSE 100 has been up 2 per cent, as low as 1 per cent in the red - and now around midday it is back up almost a full per cent again.
There has of course been more to digest today over China raising tariffs and calling on the EU for support, while we're also still awaiting tariffs from the US themselves over pharmaceuticals.
Given several big hitters operate from the UK, including the FTSE's biggest company AstraZeneca, that will doubtless have another sizeable impact when it arrives.
Right now though, the markets in France are flat for the day, in Germany are still down 0.4 per cent and for the S&P 500 futures are up 0.7 per cent. If you're managing to keep track of all the swings, well done.
If not...well, this is why experts agree that for retail investors, the best approach is to not make snap judgements about your holdings, or try to time the market.
China will 'ignore' any further US tariff hikes
11:54
,
Rachel Clun
China’s foreign ministry spokesperson Lin Jian says further US increases to tariffs on Chinese goods will be ignored.
“Given that US exports to China are already commercially unviable at current tariff levels, any further US tariff hikes on Chinese goods will simply be ignored,” he said.
From tomorrow, tariffs on US exports to China will be lifted to 125 per cent, in retaliation for the Trump administration hiking its tariffs on Chinese goods to 145 per cent in an escalating trade war.
US tariffs 'catastrophic' for developing nations
11:40
,
Rachel Clun
Donald Trump’s aggressive tariffs on imports could have a “catastrophic” effect on developing countries, the director of the United Nations trade agency said.
Some of the toughest tariff increases announced by the US President last week were on developing countries, including 49 per cent for Cambodia, 44 per cent for Sri Lanka and 37 per cent on Bangladesh.
The International Trade Centre said global trade could shrink by 3-7 per cent and global gross domestic product by 0.7 per cent, and it would hit developing countries the hardest.
"It is huge," the centre’s executive director Pamela Coke-Hamilton told Reuters. "If this escalation between China and the US continues it will result in an 80 per cent reduction in trade between the countries, and the ripple effect of that across the board can be catastrophic."
US 'cannot act recklessly', China's foreign minister says
11:26
,
Rachel Clun
Chinese Foreign Minister Wang Yi said that on tariffs: “the U.S. cannot act recklessly, and the wheel of history cannot go backwards.”
He made the comments in a Beijing meeting with the International Atomic Energy Agency's Director General Rafael Mariano Grossi on Friday.
Mr Wang’s comments caome after China increased its tariffs on US imports to 125 per cent, in retaliation for Donald Trump raising levies on Chinese imports to 145 per cent.
What are the risks of escalating tariff war between US and China?
11:12
,
Rachel Clun
Economic experts say the escalating tariff war between China and the US could cause widespread damage.
Dan Coatsworth, investment analyst at AJ Bell, told The Independent before China raised tariffs even further on Friday that the trade relationship was “in tatters”.
“It is now significantly more expensive for a US company to buy goods from China, and for Chinese companies to buy from the US,” he said. ‘The end customer will ultimately bear the extra cost and they could vote with their feet by buying less or not at all.”
Dr Robert Basedow, Assistant Professor at the London School of Economics, said the “immediate collateral” was that Chinese goods destined for the US would now be dumped in other markets.
“This will put pressure on European and other Asian producers and fuel demands for anti-dumping and countervailing duties around the world,” he said.
Independent economist Chris Richardson said while some economies could see some benefits - cheaper Chinese cars in countries that don’t manufacture vehicles, for example - the fight would have broad negative effects.
“The US is doing stupid things, China is doing stupid things, and a lot of people will suffer as a result,” he said.
EU trade chief travelling to Washington
10:51
,
Rachel Clun
The EU’s trade chief will travel to Washington on Sunday, following Donald Trump’s decision to pause increased tariffs for 90 days.
EU Commission President Ursula von der Leyen earlier announced the bloc would also hit pause on its countermeasures in response to the White House pause.
“We want to give negotiations a chance,” she said on social media on Thursday, but added “all options’” were on the table.
“If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues.”
European stocks trending down following China tariff announcement
10:37
,
Karl Matchett
We're still seeing a mid-morning turnaround in the markets after that fairly strong start - both the CAC 40 and DAX are in the red to the tune of more than 1.5 per cent, while the FTSE 100 is only 0.5pc or so down.
We're perhaps seeing that mirror the futures market for the S&P 500 which at this stage, several hours ahead of the markets opening Stateside, is down 0.4pc having been showing as high as 5375 a couple of hours ago.
The S&P closed at 5268 yesterday after a 3.5pc drop. We're all seeing this uncertainty still leave investors wondering where to turn - except in gold, which is again at a record high.
EU tariff pause is appropriate decision, Spanish minister says
10:22
,
Barney Davis
The European Commission's 90-day pause on its first countermeasures against President Donald Trump's tariffs was "the appropriate decision" that allows for a negotiated solution, Spanish Economy Minister Carlos Cuerpo said on Friday.
"Delaying countermeasures is in line with our call to reach a negotiated solution to the trade row. The door is open and we ready to walk through it. There is a lot to protect in the EU-U.S. relationship, but it has to be a fair and balanced deal," he wrote on social media platform X.
Lib Dem leader says UK should not go 'cap in hand' to beg Trump for trade deal
10:05
,
Barney Davis
Sir Keir Starmer must call a summit of world leaders to deal with the impact of Donald Trump's tariffs, in the same way he rallied world leaders to support Ukraine, the Liberal Democrats have said.
Lib Dem leader Sir Ed Davey said: "Donald Trump's nonsensical economic policies have thrown the world economy into crisis and put thousands of British jobs at risk. Now is not the time for complacency.
"The Prime Minister should show the White House that we have alternatives by hosting a summit of world leaders and building an economic coalition of the willing.
"Both Kemi Badenoch and Nigel Farage want the UK to go cap in hand to Trump and beg him for a trade deal. That is not the way to stand up for Britain or our national interest.
"We need to show a united front and put pressure on the US to not just make this 90-day pause permanent, but remove their remaining tariffs on British businesses and our car industry completely.
"The best way to end this trade war for good is by standing tall with our allies, not cowering in the corner."