China has announced it will impose a 34 per cent tariff on imports of all US products, starting next Thursday, matching the “Liberation Day” levy imposed by Donald Trump.
Beijing’s commerce ministry also said it would impose more export controls on rare earth materials used in high-tech products such as computer chips and electric vehicle batteries.
Britain’s FTSE 100 index fell 3.9 per cent to hit its lowest level since December on Friday, as Mr Trump’s new trade tariffs caused another day of intense turbulence on the global markets.
Asia-Pacific markets opened in the red for a second day after S&P 500 companies lost a combined $2.4trn in stock market value overnight – the US index’s biggest one-day loss since the Covid pandemic in March 2020.
After hitting an all-time high last month, the FTSE also fell for a second day in Friday morning trading, with Germany’s DAX index also tumbling 5 per cent and the Euronext 100 down 4.8 per cent.
Mr Trump claimed to reporters on Thursday that “the markets are going to boom”, and insisted that Sir Keir Starmer was “very happy” with Washington’s new 10 per cent tariff on UK goods.
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Key points
- China imposes huge 34% tariffs on all US goods in response to Trump levy
- FTSE 100 falls to lowest level in months as European and Asian markets slip
- S&P 500 records biggest one-day hit since Covid pandemic in March 2020
- Donald Trump claims Keir Starmer ‘very happy’ with tariffs on UK
- Starmer warns UK must ‘act and lead differently’ in ‘a new economic era’
- Which US products that could be hit by retaliatory UK tariffs?
- How could Trump’s tariffs affect UK households and their finances?
PM to talk to global leaders this weekend
14:08
,
Jane Dalton
Sir Keir Starmer will be holding a series of talks with global leaders this weekend as the world reels from President Trump's tariffs and European markets plummeted.
Downing Street had made clear that the UK is "disappointed" with the US levies and will be speaking with partners in the coming days as it grapples with a "new era" in trade and a "shifting" economic landscape.
No 10 contradicted the US president's claim on Thursday that the Prime Minister was "very happy" about the imposition of a 10% import tax on British goods entering America.
Asked on Friday whether that characterisation was accurate, a Downing Street spokesman said: "We're disappointed by the tariffs that have been brought in.
"Clearly, there will be an economic impact from the decisions the US has taken, both here and globally, but both the Prime Minister and the Business Secretary have been very clear over the last 24 hours that we will continue to act in the best interests of the UK, and we're prepared to do so."
The official added: "We'll be engaging with international leaders over the weekend... The need for engagement with international leaders is clear. It is a changing, shifting global economic landscape."
This isn't a market crash – yet
13:58
,
Jane Dalton
Lots of headlines are focused on global stock markets falling, plummeting, dropping or otherwise trending downwards in fast-moving fashion, writes Karl Matchett.
There are a few rather more specific terms that might be thrown around soon too.
A stock market "correction" is generally accepted as a 10 per cent drop from a recent high point, so if we take a recent high of the S&P 500 at 5842 in early March, it would need to drop to around the mid-5250s to be in correction territory. Yesterday it closed at 5396, so it's drawing close to around that level.
A stock market "crash" is the more severe version – a 20 per cent or more drop in a day or short space of time.
It's not time for that type of talk yet, though. The FTSE-100 is down about 6.8 per cent over the past month, so following a rise at the start of the year, it's actually almost exactly flat now since the start of the year.
Bosses await hit and want more EU ties
13:37
,
Jane Dalton
A snap poll of 562 members of the Institute of Directors found more than a third of bosses (37 per cent) expect to be hit.
Anna Leach, the IOD’s chief economist, said “a sizable chunk” of leaders wanted greater alignment with the EU.
She added: “At this point, most business leaders are adopting a “wait and see” approach to the tariffs.
“Others are looking to re-locate activity to the States or to trade more with other markets.
“With so much uncertainty surrounding the ultimate end point for tariffs as the UK progresses its own negotiations with the US, it is understandable that businesses will be reluctant to sink time and money into responses which are costly and difficult to reverse.
“But this will only add to the sluggishness in activity we have seen in the run-up to and since the October Budget announcements, and will further undermine growth.”
Financial Times and Wall Street Journal lambast Trump tariffs in scathing editorials
13:23
,
Andy Gregory
The Financial Times has warned that, if they endure, Donald Trump’s global tariffs “will go down as one of the greatest acts of self-harm in American economic history”, in a scathing editorial today.
The editorial states: “They will wreak untold damage on households, businesses and financial markets across the world, upending a global economic order that America benefited from and helped to create.
“This was no ‘liberation day’ for America. If Trump gets his way, the US economy will be isolated from the very system that has powered its century-long rise. The whole world will suffer, but it need not follow America’s path.”
And the Wall Street Journal’s editorial labels Mr Trump’s global tariffs an “abuse of power”, urging that “someone should sue to block” them.
It states: “Mr Trump's tariffs are the biggest policy shock to the world trading system since Richard Nixon blew up Bretton Woods in 1971. As with that decision, Mr Trump is acting with little understanding about the damage his tariffs will cause. The ‘disturbance’ might not be as little as he imagines.”
Sterling drops sharply as selloff in risky assets deepens
13:14
,
Andy Gregory, with Reuters
Sterling has hit a seven-month low against the Euro while also falling against the dollar and the Yen, as China’s retaliatory tariffs against the US deepened a selloff in risky assets.
Among major developed market currencies (G10), sterling tends to be more volatile and sensitive to risk sentiment than traditional safe havens such as the Japanese yen, the Swiss franc, or the US dollar. However, Trump’s moves have raised questions about the safe-haven status of the greenback.
The pound fell 0.6 per cent to $1.3014. It dropped 1.6 per cent against the yen to a fresh five-week low at 187.92.
While looking to the possibility of a UK-US trade deal, investors boosted their bets on future Bank of England rate cuts and are now fully pricing in three 25 basis points in easing moves by year-end – in line with similar market expectations for the European Central Bank.
Sterling hit its lowest level since late August against the euro at 84.84 pence, down 0.6 per cent, although investors have recently sold the common currency on tariff-related headlines.
Chris Turner, head of forex strategy at ING, mentioned two drivers of the euro’s rise against sterling, saying: “The first is that the euro has better liquidity than sterling and will benefit more as investors leave the dollar.”
“The second is that the looming global trade war is proving the greater leveller for rate spreads,” he said, referring to past expectations of a slower pace of rate cuts in Britain.
Rachel Reeves says UK is ‘determined to get best deal we can’ with Trump
13:05
,
Andy Gregory
Chancellor Rachel Reeves has said that the UK government is “determined to get the best deal we can” with the United States.
“Well, of course, we don’t want to see tariffs on UK exports, and we’re working hard as a government in discussion with our counterparts in the US to represent the British national interest and support British jobs and British industry,” Ms Reeves said.
“Those conversations are ongoing at the moment, but we’re determined to get the best deal we can for our country.”
Declining to give a timeframe for when she expected those discussions to bear fruit, Ms Reeves said: “I’m not going to give a running commentary on those discussions. They’ve been ongoing since our prime minister Keir Starmer had a successful visit to the White House to meet President Trump just a few weeks ago.
“Those conversations are ongoing. We want to do everything in our power, and we’ll continue to do everything in our power to get the best possible deal for British industry, working closely with them to protect prosperity and jobs here in the UK.”
NatWest loses around £3.5bn from its market cap
12:44
,
Karl Matchett, Business and Money Editor
To put some of today’s FTSE 100 falls into perspective, it’s worth looking closer at NatWest.
At around a £36bn market capitalisation value, losing 9.8 per cent (as it currently stands today) is a drop of about £3.5bn on the day.
The share price itself is about 55p lower than it was a month ago and, as a side note, as part of an agreed process dating back to the bailout, the UK government has been gradually selling down its stake in NatWest shares – it still held around 11 per cent of the company in November, but by March was down to under five per cent.
NatWest shares are now back to about the level from January, having risen more than 40 per cent across the last year.
No 10 says UK ‘disappointed’ with tariffs – after Trump claims Starmer ‘very happy’
12:39
,
Andy Gregory
Downing Street has pushed back against Donald Trump’s claim that Sir Keir Starmer is “very happy” with Britain’s tariff treatment.
Asked whether it was right to say the prime minister was very happy, a No 10 spokesperson said: “I think you have the business secretary’s words ... we’re disappointed by the tariffs that have been brought in.
“Clearly, there will be an economic impact from the decisions the US has taken, both here and globally, but both the prime minister and the business secretary have been very clear over the last 24 hours that we will continue to act in the best interests of the UK, and we're prepared to do so.”
Analysis: China retaliation dims hopes of averting all-out trade war
12:33
,
Andy Gregory
Our business and money editor Karl Matchett writes:
If investors – and more pertinently, people in general who need to spend money on goods and services – were hoping Trump’s tariffs wouldn’t lead to an all-out trade war, China’s response today doesn't really offer much reason for hope.
A reciprocal 34 per cent tariff on all US goods, plus restricting the movement of rare-earth minerals, is probably going to just be the start of the blowback towards the US. As for what this might mean in market terms, it’s certainly going to contribute to the expected further falls on Friday.
The S&P 500 futures show a likely opening at around 2.9 per cent lower than yesterday’s close, with likely more to come if further nations announce similarly to China. “Markets are likely to remain volatile over the coming days as US trade partners determine their responses,” said Jason Hollands, managing director at investment management firm Evelyn Partners.
On a more practical level, it’s not yet really clear if, for example, a US-based company which sent materials to China, had their product made and then shipped it back for selling Stateside would now need to pay two lots of tariffs, but in any case we can expect rapid changes in supply chains to be high on the agenda for many companies in the coming weeks.
That has a knock-on effect to everybody, as shipping needs change, materials are re-routed, the cost or time of coming into the country from a different location could rise, then in turn demand could increase due to shortages ... on and on it goes. A lot of change is likely if these tariffs and responses stick.
Starmer will engage with other leaders on trade over the weekend, says No 10
12:23
,
Andy Gregory
Sir Keir Starmer will speak to other leaders over the weekend on the shifting “global economic landscape”, Downing Street has said – repeating its stance to remain cool-headed in response to Donald Trump’s tariffs.
“We are very much aware that the global economic landscape is shifting,” the prime minister’s spokesperson told reporters.
“It means we have a responsibility to work even more closely with other countries to maintain stability and strengthen our partnerships abroad and you'll see the prime minister engaging with international leaders over the weekend on this.”
Just seven FTSE 100 firms in the green as markets tumble
12:20
,
Karl Matchett, Business and Money Editor
Midway through the trading day and only seven FTSE 100 companies are in the green – and only four of those by more than a quarter of a percent.
Energy shares are the outlier today and gains for SSE, United Utilities and National Grid don’t even come close to making up for losses elsewhere, with London's top index down 3.9 per cent on the day, marking a seven per cent fall for the past month.
That said, for the smaller listed companies on the LSE it’s even more brutal: seven per cent off their combined market cap in the past five days alone, including 3.9 per cent today.
The banking and finance sector is being hard-hit once more amid fears of a global recession looking more likely, with Paragon Banking, Lion Finance Group and TBC Bank Group all down by more than eight per cent in the FTSE 250. In the main index, NatWest is down 10.2 per cent and Barclays 11.2 per cent today.
The below graph, from the London Stock Exchange, shows the FTSE’s downwards trajectory in recent days:
Continued tariffs could ‘break the machine’: Investors react to China’s retaliation
12:11
,
Andy Gregory
Investors have given their reactions to China’s retaliatory 34 per cent tariffs on all US goods, in remarks to Reuters.
Eddie Kennedy, of London-based firm Malborough Investment, said: “Others have maybe learned their lessons [from Trump’s last term]. They are fighting back and saying we can play the same game as you and we are more in a position of strength to negotiate.
“All that is doing is escalating the issue and causing more negative feedback into the market. The biggest concern is this gets pushed onto the consumer.”
Jan Von Gerich, of Helsinki-based Nordea, said: “The reaction from China appears stronger-than-expected but we have to look at the detail. If Trump reacts to China's retaliation, then markets could take another hit. There is a risk that things are going too far in the markets selloff, but who wants to catch a falling knife?”
And Samy Chaar, of Geneva’s Lombard Odier, said: “It's still early to make a final assessment. There are two paths from here: There is the one where [Trump] shows openness to deals and even if we have a harsh start, with reciprocal tariffs and these responses by China, they show willingness to talk and bring tariffs lower in the months to come.
“The other path is he has no appetite to strike deals, wishes to maintain the tariffs for an extended period of time and that breaks the machine. I don't think this [Chinese retaliation] is a signal for one or the other. Everyone will flex their muscles, but it doesn't invalidate the idea that they make a deal at some point.
“But beside that, we need to have signs that at some point Trump is making comments that he is expecting to strike a deal.”
How could Donald Trump’s tariffs affect UK households and their finances?
12:02
,
Andy Gregory
Foreign secretary David Lammy has said people across the country are “very concerned” about how the move by the United States to place 10 per cent import taxes on goods would hit their own finances.
Here is a look at how households may find their finances could be affected:
What goods are involved in US-China trade?
11:58
,
Andy Gregory
China exported goods worth a total of $436bn to the United States in 2023, according to the Observatory of Economic Complexity.
China’s main export – totalling $54bn – was broadcasting equipment, followed by computers ($37bn) and office machine parts ($14bn), according to the OEC.
Conversely, the US is calculated to have exported $154bn to China in 2023, including services and products such as soybeans, crude petroleum and petroleum gas.
For combined goods and services exports in 2021, China was the top export market for four US states, in the top three markets for 38 states, and within the top five markets for all but three states, according to a 2023 report by the US-China Business Council.
Breaking: China announces 34% tariff on all US imports
11:43
,
Tom Barnes
China has announced it will impose a 34% tariff on imports of all US products, starting on April 10.
The new tariff matches the rate of the US "reciprocal" tariff imposed by US president Donald Trump this week.
Beijing's commerce ministry also said it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries.
FTSE 100 falls to lowest level since December, as European markets tumble
11:32
,
Andy Gregory
The FTSE 100 has slipped 3.6 per cent today, wiping out all of the gains made so far this year.
The British index was down 113.35 points at 8,167.28 as of 11:30am, marking its lowest level since late December.
Germany’s DAX index also tumbled 3.3 per cent, while the CAC 40 in Paris was down 3.1 per cent, and the Euronext 100 down 3.5 per cent.
‘Donald Trump is Liz Truss,’ says former White House comms chief
11:23
,
Andy Gregory
“Donald Trump is Liz Truss,” the financier and Rest is Politics US podcast host Anthony Scaramucci has said, in a reference likening the US president’s tariffs policy to the former prime minister’s disastrous mini-Budget, which led to her resigning after just 49 days in office.
Mr Scaramucci, who also spent just 10 days as Barack Obama’s White House communications chief, said: “The sudden imposition of the highest import tariffs for a century will make the US economy less competitive and so likely to grow more slowly.
“It also signals that the US has become a less welcoming place for foreign capital. As Louis likes to put it, the US is now less a destination for capital and more a source of capital.”
Analysis | The truth about Trump’s tariffs and the ‘Brexit dividend’
11:12
,
Andy Gregory
The Independent’s political editor David Maddox writes:
Within minutes of Donald Trump’s announcement on so-called “reciprocal tariffs” around the world, Brexiteers were claiming victory because the UK escaped with half the rate imposed on the EU.
But if the UK’s 10 per cent import tariffs to the American market compared to the EU’s 20 per cent, is the best economic justification for Brexit that can be made, then supporters of leaving the EU are clutching at straws.
The first and most obvious point is that Brexit has not spared the UK from having tariffs imposed on it by the one world leader who was the biggest cheerleader outside Britain for the UK leaving the EU.
Britain is yet to benefit from the “Brexit dividend” – the economic gain that was promised when it left the EU. And far from the trade deal that Brexiteers promised would follow with the US, there is still none in place nine years after the referendum. Even if Keir Starmer lands one, it is likely to be highly focussed on specific areas and may not avoid tariffs altogether.
Even with half the rate of tariffs compared with those imposed on the EU, the difference barely goes anywhere near undoing the economic harm that Brexit has done to the UK economy.
Prospect of UK-US trade deal casting doubt in EU over Starmer’s Brexit ‘reset’, trade expert says
11:02
,
Andy Gregory
The question over whether the UK should accept chlorinated chicken from the United States is “almost entirely a proxy battle for whether UK trade policy should favour the US or EU more”, a trade expert has said.
David Henig, UK director of think-tank Ecipe, said on social media: “Though this doesn't have to be the case (NB Swiss exception) if the UK signs up to US food standards, bye bye deep EU trade relationship. That was why the Brexiters wanted a US trade deal, and hoped wrongly CPTPP would achieve the same.
“And right now even the possible prospect of a UK-US trade deal is casting doubt in Brussels about the reset, which may be manageable but with the sort of care and skill that goes far beyond ‘bridge’ talk and hasn’t previously been shown by the UK.
“Behind all the bluster the trade policy view is pretty simple. 50 per cent of UK trade is with Europe, less than 20 per cent with the US. That seems pretty stable, therefore even folk in the US understand the likely implications, possibly better than the UK government.”
Taiwan unveils £6.7bn in help for companies to deal with US tariffs
10:44
,
Andy Gregory
Taiwan’s government has announced at least T$288 bn (£6.74bn) in financial help for companies and industries to deal with the impact of US tariffs, including export credits.
Donald Trump has imposed a whopping 32 per cent tariff on goods – excluding semiconductors – imported from Taiwan, just two months after the US became Taiwan’s top export destination. The US accounted for 28.5 per cent of the country’s total outbound sales in February, overtaking China and Hong Kong’s 28.4 per cent for the first time in 24 years, Taiwan’s Central News Agency reported, citing official data.
Speaking at a news conference in Taipei, premier Cho Jung-tai reiterated that the government regarded the tariffs as unreasonable, saying it would provide T$88bn to help companies affected. Finance minister Chuang Tsui-yun said the government would also provide T$200bn in trade financing for exporters.
The announcements were made before financial markets re-open in Taiwan on Monday, having been closed on Thursday and Friday for a holiday.
Trump tariffs to force quicker US and EU interest rate cuts, says investment bank
10:09
,
Andy Gregory
Donald Trump’s global tariffs will stymie economic growth and cause rising inflation, forcing the US Federal Reserve to start lowering interest rates from the end of this year – while the European Central Bank could cut rates as soon as this month, analysts have forecast.
The tariffs are “worse than feared”, said Japanese investment bank Nomura, lowering its US growth estimate to 0.6 per cent from 1.5 per cent, on a quarterly basis, and hiking its core year-end inflation forecast to 4.7 per cent – up from 3.5.
As a result, the brokerage expects the Fed to lower rates in December, taking the policy rate to 4.125 per cent, followed by two more 25 bps cuts in the first quarter of 2026. It had previously expected the central bank to hold at 4.25-4.5 per cent until the second quarter of 2026.
“Increased downside risks to growth and a more front-loaded inflation shock should allow cuts to resume sooner than we had expected”, Nomura economists said in a note on Thursday.
And the ECB will be forced to act even quicker than the Fed, said Nomura, which now expects the central bank to cut rates in April as well as June, resulting in a terminal rate of 2 per cent, from 2.25 per cent predicted previously.
Exclusive: Tony Blair urges Starmer not to retaliate against Trump tariffs
09:50
,
Andy Gregory
Sir Tony Blair has urged Sir Keir Starmer not to retaliate against Donald Trump’s tariffs, saying such a move wouldn’t be in the UK’s “best interests”.
It comes as officials scramble to respond to the news that British exports to the US would face a blanket 10 per cent levy, sending global markets tumbling and sparking fears the chancellor’s fiscal headroom could be wiped out.
In a rare intervention, the former prime minister told students at King’s College London that he supported Sir Keir’s “cool heads” approach to Trump’s “Liberation Day”, and he didn’t really understand the intellectual argument behind the tariff policy.
“I don’t think it is in the UK’s best interest to retaliate,” he said, but admitted he did not know where developments over the tariffs would end.
Jane Dalton and Millie Cooke have more details in this exclusive report:
Ask John Rentoul anything in Q&A on Trump’s tariffs, Brexit and more
09:42
,
Andy Gregory
The Independent’s chief political commentator, John Rentoul, will be answering your questions in a live Q&A today at 1pm.
With Donald Trump’s new tariffs affecting UK exports, Keir Starmer’s government faces critical decisions.
What does this mean for Britain’s economy and post-Brexit trade? How will it impact UK-US and UK-EU relations?
Join the discussion and ask your questions here:
France open to letting deficit reduction target slip amid tariff uncertainty, minister says
09:29
,
Andy Gregory
France’s finance minister Eric Lombard has opened the door to letting the French government’s deficit reduction target slip this year – ruling out extra spending cuts and tax increases to offset a potential shortfall in growth.
Speaking to BFM TV, Mr Lombard said things were uncertain and it was necessary to wait to see in the coming weeks how negotiations with the United States would go over recently announced tariffs to have a better idea of their impact on the French economy.
If tariffs on the European Union – amounting to 20 per cent on EU imports, with higher levels on certain French territories – were maintained, Mr Lombard said, “revenue would decrease, the GDP would decrease, which would – without getting too technical – degrade the level of the deficit, and I think in that case, to protect the French people, I think we must accept that.”
France has been aiming to trim its deficit to 5.4 per cent of economic output this year from 5.8 per cent last year as a step toward bringing its shortfall in line with a European Union ceiling of 3 per cent by 2029.
But Paris still has one of the biggest fiscal gaps in the EU and, unlike other big European countries, it will not be able to bring its debt burden to pre-pandemic levels by the end of the decade.
Banking and mining stocks lead losses as FTSE 100 slumps to lowest level since mid-January
09:07
,
Andy Gregory
Banking stocks are among the heavier fallers on the FTSE 100 this morning as the UK index slumped to its lowest level since 15 January, with Asia-focused firm Standard Chartered dropping by around 4 per cent.
Mining and commodity stocks were also among the fallers, after specific tariffs on metal production, such as aluminium.
It came after further declines in the Asian markets, after heavy losses across global stock markets on Thursday.
The Hang Seng Index in Hong Kong was down 1.5 per cent and Japan's Nikkei dropped 2.4 per cent, adding to losses in the previous session, as traders continued to digest the impact of Donald Trump’s tariff plans.
In the US on Thursday, the Dow Jones and S&P indexes both suffered their worst days since 2020.
FTSE 100 tumbles again as European markets fall
09:03
,
Andy Gregory
The FTSE is now down 1.16 per cent in early morning trading, with Germany’s DAX index also tumbling 1.12 per cent and the Euronext 100 down 1.49 per cent this morning.
The below graph, from the London Stock Exchange, shows the FTSE’s downwards trajectory in recent days:
UK ‘negotiating intensively’ to secure economic deal with Trump, Treasury minister says
08:38
,
Andy Gregory
A Treasury minister said the UK government is “negotiating intensively” and “at pace” to secure an economic deal with the US.
Asked why the government was consulting on possible retaliatory action given most economists say it would lead to a bigger hit to the economy, exchequer secretary to the Treasury James Murray told Sky News: “We've been negotiating intensively to secure a deal since the prime minister went to Washington earlier this year and we’re continuing those negotiations at pace to secure a deal now.
“Obviously we're engaging with businesses, we have been throughout this process.
“The next stage of engagement is to ask their input about what possible measures would look like in terms of the UK response, because we want to involve businesses in that decision, and we need to be clear that we keep all options on the table ... we reserve the right to retaliate, but we want a deal, and our full focus is on that.”
FTSE 100 tumbles 0.64 at opening as European and Asian markets slip
08:26
,
Karl Matchett, Business and Money Editor
Another day in the stock markets, another series of losses looking likely.
The FTSE 100 has opened 0.64 per cent down; nothing approaching the scale of yesterday's destruction of value in the US markets of course, but still giving up hard-won ground from earlier in the year as a result of Trump’s tariffs.
After Asian markets suffered a similar continued downward spiral overnight, the same is now showing true in Europe: the CAC 40 in France, the DAX in Germany and the Euronext 100 are all down between two-thirds and a full per cent this morning.
“Liberation day has left markets in a state of shock. The situation is fluid, but we believe tariffs aren’t going away anytime soon. While the US has a lot to lose, EU equities are holding up relatively well, even more so in dollar terms,” wrote analysts at Barclays this morning.
Watch: David Lammy says US return to protectionism is regrettable
08:14
,
Andy Gregory
Foreign secretary David Lammy has said he regrets the return to protectionism in the United States.
Speaking as he arrived in Brussels to meet his Nato counterparts, Mr Lammy told reporters: “The United Kingdom, like France, is a great maritime nation.
“We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we’ve not seen for nearly a century. As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal.
“And of course, we have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare.”
Jeremy Hunt calls for ‘Singapore-on-Thames’ in wake of Trump tariffs
08:07
,
Andy Gregory
Tory former chancellor Jeremy Hunt has revived the Brexiteer call to turn Britain into “Singapore-on-Thames” by making the UK a low-tax nation welcoming free trade in response to Donald Trump’s tariffs.
Writing in The Telegraph, Mr Hunt urged Sir Keir to “resist the siren song of protectionism”, saying: “Countries like Singapore demonstrate, openness can still deliver excellent results. Over the last half century, its living standards have grown five times faster than ours.
“Those who deride the idea of “Singapore-on-Thames” fail to understand that the heart of their success has not been a harder-edged social policy but the building up of internationally competitive businesses through willingness to trade.
“But Singapore didn’t invent free trade. That honour belongs to Britain. Even if others turn their backs on it, we should remember the benefits of one of our greatest gifts to the world.”
UK braces for more market chaos today
08:00
,
Alisha Rahaman Sarkar
The UK is braced for more market chaos on Friday as the government considers its response to Donald Trump's tariffs.
The FTSE 100 fell to a three-month low yesterday after the news that British exports to the US would face a blanket 10 per cent tariff.
An "indicative list" published by the British government named some American products that could be targeted in its response, including bourbon whiskey, motorcycles, guitars and jeans.
But an immediate response is unlikely as trade secretary Jonathan Reynolds told MPs he would hold a four-week consultation on retaliatory action.
The government still hopes for an "economic deal" with the US to secure some exemption from the tariffs, with prime minister Sir Keir Starmer promising businesses that he would "fight for the best deal for Britain".
Trump claims Starmer ‘very happy’ with UK tariffs
07:38
,
Andy Gregory
Donald Trump has claimed that Sir Keir Starmer “was very happy” with Washington’s new 10 per cent tariffs on UK goods.
“We have a very good dialogue. I think he was very happy about how we treated them with tariffs,” the US president told reporters on Air Force One.
Mr Trump added that he was open to negotiations on the tariffs if countries offered “something that is so phenomenal”.
Speaking at the launch of his local government campaign in Chesterfield on Thursday, Sir Keir said that the world was at the beginning of a “new economic era” in which “we have to act and lead differently” – describing the response to Mr Trump’s tariffs as “not just a short-term tactical exercise”.
The prime minister said: “It is the beginning of a new era, we need to understand that, just as we have for defence and security, we have to understand the changing world when it comes to trade and the economy.”
Turkey wants to negotiate 10% tariff
07:21
,
Alisha Rahaman Sarkar
Turkey wants to negotiate with the US to lift the 10 per cent additional tariffs announced by president Donald Trump, trade minister Omer Bolat said this morning.
"We want to discuss the issue in negotiations with the US Department of Commerce and Trade Representative... since there is a $2.4bn surplus in favour of the US in trade between the two countries for 2024," he said in a statement.
IMF says Trump tariffs are a ‘significant risk’ to global economic outlook
07:08
,
Alisha Rahaman Sarkar
Donald Trump's sweeping tariff campaign presents a “significant risk” to the global economic outlook “at a time of sluggish growth”, the head of the International Monetary Fund has warned.
Managing director Kristalina Georgieva said officials were still assessing the macroeconomic implications of the tariff plans Mr Trump announced this week.
"It is important to avoid steps that could further harm the world economy," she said as global markets bled yesterday.
“We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” she added.
Watch: Keir Starmer says he will 'fight' to secure deal with US
07:01
,
Athena Stavrou
Trump closes China tariff loophole used by fast fashion retailers
06:46
,
Alisha Rahaman Sarkar
Donald Trump has signed an executive order to shut down a trade loophole known as “de minimis” that has allowed low-value packages from China and Hong Kong to enter the US free of duties.
The move appears to be a massive blow to fast-fashion companies such as China-based Shein and Temu, which managed to rapidly expand in the US through the almost century-old de minimis rule. This tariff exemption will end on 2 May, the White House said on Wednesday.
More here.
Asian shares continue to slide
06:44
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Alisha Rahaman Sarkar
Asian shares slid further today after US president Donald Trump's tariffs sent shudders through financial markets at a level of shock not seen since Covid-19 pummelled world markets in 2020.
Mr Trump announced a minimum tariff of 10 per cent on global imports, with the tax rate running much higher on products from certain countries like China and those from the European Union. Smaller, poorer countries in Asia were slapped with tariffs as high as 49 per cent.
Tokyo's Nikkei 225 lost 4.3 per cent, while South Korea's Kospi sank 1.8 per cent. The two US allies said they were focused on negotiating lower tariffs with Trump's administration. Australia's S&P/ASX 200 dropped 2.2 per cent.In other trading early this morning, the US dollar fell to 145.39 Japanese yen from 146.06.
The yen is often used as a refuge in uncertain times, while Trump's policies are meant in part to weaken the dollar to make goods made in the US more price competitive overseas. The euro gained to $1.1095 from $1.1055.
Taiwan's leader says he will support impacted industries after 'unreasonable' tariffs imposed
06:26
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Alisha Rahaman Sarkar
Taiwan's president Lai Ching-te said he will offer the "greatest support" to industries impacted by the new tariffs.
Mr Lai acknowledged that Taiwan had a trade surplus with the US, but that much of it came from Taiwanese industries trying to fulfill the US demand for Taiwan's information technology products.
"We feel that this is unreasonable and are also worried about the subsequent impact these measures may have on the global economy," Mr Lai said in a statement on Facebook.
The president said he instructed premier Cho Jung-tai to work closely with industries that are impacted and
