Donald Trump has confirmed that the US will not be pausing tariffs, stressing that they were “not looking at that”.
The president said many countries have been negotiating with Washington and they will try and make "fair deals" with each of them. It comes as Israeli prime minister Benjamin Netanyahu vowed to eliminate the trade deficit with the U.S, while Trump also accused the EU of being formed to “create a unified force against the United States for trade.”
London’s FTSE 100 stock index plunged a further 4.3 per cent on Monday to a value last seen in March 2024, as Donald Trump’s tariffs continue to wreak havoc on the global markets.
After the US president announced his sweeping tariffs last week, Wall Street sank again, with the S&P 500 briefly approaching bear market territory on Monday, coming off its worst week since Covid-19 began crashing the global economy in March 2020. The Dow Jones Industrial Average was down 2.3 per cent, and the Nasdaq composite 1.5 per cent lower.
The continued volatility came as Mr Trump threatened China with a further tariff of 50 per cent and said “all talks with China concerning their requested meetings with us will be terminated” unless Beijing withdraws its planned 34 per cent retaliatory levy.
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Key points
- EU warns it is finalising its list of countermeasures tonight
- Trump confirms he will not be pausing tariffs
- EU 'ready to prepare for retaliation' to Trump's tariffs
- FTSE 100 hits one-year low as market fears deepen after Trump stands by tariffs
- US indexes down more than 3% as trading opens today
- Trump's tariff 'medicine' sends global markets into spasms
Are we heading for another 2008? The context behind Trump’s £6.4 trillion stock market collapse
23:09
,
Karl Matchett
Stock markets have continued to fall across the globe in the wake of US tariff announcements last week, and now retaliation measures have started to emerge, with China among the first to respond and the EU expected to make a statement imminently.
The combination of higher costs, fewer orders for businesses and punitive hits on US exporters all means worldwide growth could well slow significantly, with some economists now foreseeing a chance of global recession.
Ongoing uncertainty around the entire situation means there’s no guarantee of an answer, and yet the question remains: how much worse could it get in the stock markets?
Karl Matchett provides some useful analysis
Business secretary warns against ‘catastrophising’ over Trump tariffs
23:01
,
Andy Gregory
The US is not seeking concessions on Britain’s new online safety laws as part of a trade agreement, business secretary Jonathan Reynolds signalled on Monday.
Asked whether this was the case by Sky News, Mr Reynolds said: “I think some of that speculation is misplaced.”
He added: “I think fundamentally, this is about the tariffs on goods, it's about how services work in either country, how you recognise each other's standards in place and all of that. We would never be seeking to dilute the safety of children online. But equally, I think it’s important to say the US does not have an agenda about making our children less safe.”
While Mr Reynolds would not give a timeline on when a trade deal might be agreed, he gave some insight into the negotiations, telling Sky: “There are things on both sides we’d like to deepen, we’d like to change.
“If that is what the US is seeking to do, rather than say, using tariffs to raise revenue or as a permanent standing item of policy, we can absolutely remove some of the existing trade barriers and build on that strong relationship, make it even stronger.”
Asked about the impact of Donald Trump’s tariffs to the global economy, the business secretary said: "I think what we shouldn’t do is catastrophise. We shouldn’t panic. We shouldn’t escalate a trade war as some colleagues, other political parties, have asked me to do. That would be the wrong thing.”
Starmer and Singapore’s Wong agree ‘likeminded partners’ are vital to maintain global economic stability
22:00
,
Andy Gregory
Sir Keir Starmer has spoken to his Singaporean counterpart Lawrence Wong about the global impact of Donald Trump’s tariffs and agreed that there can be no winners in trade wars, Downing Street has said.
“They both agreed that it is vital likeminded partners work together to maintain global economic stability,” a No 10 spokesperson said.
Top Republican in US Senate says Congress will let tariffs play out
21:57
,
Andy Gregory
US Senate Majority Leader John Thune has indicated that his chamber was unlikely to impede the implementation of Donald Trump’s global tariffs.
“I expected some turbulence in the stock market, I think everybody did. This was a change in policy, a consequential one, but I think we got to let it play out and see what ultimately happens not only in the near term, but in the long term,” Mr Thune told reporters on Monday.
Acknowledging that “everybody is concerned” about the US stock market, the top Republican said nonetheless a bipartisan bill in the Senate to require congressional approval for new tariffs has no future – after Mr president said he would veto the bill.
“The president has indicated he would veto it. I don’t see how they get it on the floor in the House. We are going to wait and see what is going to happen next,” Mr Thune said. The US Constitution granted Congress trade authority but over time the legislature has passed this power to the executive branch.
Seven Republican senators including Grassley have signed on as co-sponsors of the bill.
Watch: Starmer vows UK won't be cowed by Trump's tariffs
21:28
,
Andy Gregory
S&P 500 ends down after rollercoaster day of trading
21:16
,
Andy Gregory
The S&P 500 and Dow Jones both closed lower on Monday after a rollercoaster session of trading.
Early on Monday, all three major US stock indexes touched their lowest levels in more than a year, and the CBOE Volatility index – Wall Street's fear gauge – breached 60 points, hitting its highest level since August 2024.
According to preliminary data, the S&P 500 was down 0.28 per cent at the close of trading on Monday, while the Nasdaq Composite actually gained 0.09 per cent, and the Dow Jones Industrial Average fell 0.93.
Starmer pledges to ‘shelter British business from the storm’ of Trump’s tariffs
21:00
,
Andy Gregory
Sir Keir Starmer pledged to “shelter British business from the storm” on Monday, as he called for “cool heads” to prevail.
Speaking at a Jaguar Land Rover plant in the West Midlands, the prime minister said: “These are challenging times, but we have chosen to come here because we are going to back you to the hilt.”
“This is a moment for cool heads, nobody wins from a trade war, you know that. But it’s also a moment for urgency, because we've got to rise together as a nation to the great challenge of our age – and it is the great challenge – which is to renew Britain so we're secure in this era of global instability,” he said.
Sir Keir said “this is not a passing phase” and it was a “completely new world”, with the economic turbulence hot on the heels of defence and security instability triggered by the war in Ukraine.
Trump claims EU was formed to 'do damage' to the U.S.
20:56
,
Holly Evans
Donald Trump has stated his belief that the European Union was formed to “do damage” to the United States.
Asked if the EU's 'zero for zero' position on tariffs was enough, Trump said: “Well, the EU, no, it's not. The EU has been very tough over the years.
“It was, I always say it was formed to really do damage to the United States in trade. That's the reason it was formed. It was formed with all of the countries from Europe, I guess most of them, not all, but most of them.
“And they formed together to create a little bit of a monopoly situation, to create a unified force against the United States for trade.”
Trump confirms he will not be pausing tariffs
20:37
,
Holly Evans
The US will not be pausing tariffs, Donald Trump has said, confirming that they are “not looking at that”.
The president says many countries have been negotiating with Washington and they will try and make "fair deals" with each of them.
He also said the US "has been ripped off by many countries over the years".
"We can't do it anymore. We can't be the stupid people anymore," he added.
Netanyahu says Israel will 'eliminate trade barriers' with the U.S.
20:31
,
Ariana Baio
Benjamin Netanyahu has praised Trump as a true "friend of Israel" in a joint press conference following his last minute trip to Washington.
Despite the U.S. being Israel’s closest ally, they have not escaped the president’s tariffs and have been landed with a shock 17 per cent tariff on Israeli imports.
Moving on to tariffs, Netanyahu said: "We will eliminate the trade deficit with the US... We will do it very quickly and we will eliminate trade barriers."
"We intend to do it very quickly and we think it is the right thing to do," he says.
He adds: "Israel can serve as a model for many countries" - dozens are seeking trade deals with the US to avoid the worst effects of Trump's tariffs.
Business secretary rejects suggestion UK being 'passive' in face of US tariffs
20:26
,
Andy Gregory
The UK is not being “passive” in response to Donald Trump’s tariffs, Sir Keir Starmer’s business secretary has insisted.
Put to him that the government had not stepped up at all, only announcing tweaks to the zero emissions vehicle mandate, Jonathan Reynolds told BBC Radio 4’s PM: “No, I think that is completely incorrect. We've leveraged the difficult situation with the US to advance all of those talks.
"Obviously, these deals are never ... you can't announce them until they're done. You don't give a running commentary on the progress of them, but that's been a key part of that."
He added: “I'm always keen to stress that when I talk about the need for calm, for level heads. That is not a passive response.
“There's a huge amount going on, whether that's on trade defence, on domestic competitiveness, on our negotiations with other countries, but that is the right response. Calmness in the face of what we're seeing isn't being passive, it is actually doing the right thing in our national interest to make sure we can respond to this difficult situation."
Mr Reynolds earlier told the programme: “It is, and has been an exceptionally challenging day. A lot of people at home listening will be concerned, whether they are an individual, a business, or someone with investments, or just worried about the impact on the economy as a whole. I think our job, what we can control in the UK is how we respond to this, how we navigate our way through it.”
EU stands ready to negotiate 'zero for zero' deal with Trump
20:16
,
Holly Evans
Financial markets across the globe posted a third day of losses, as the European Commission proposed counter-tariffs of 25 per cent on a range of U.S. goods, including soybeans, nuts and sausages.
Officials said they stood ready to negotiate a "zero for zero" deal with Trump's administration. "Sooner or later, we will sit at the negotiation table with the U.S. and find a mutually acceptable compromise," EU Trade Commissioner Maros Sefcovic said at a news conference.
The 27-member bloc is struggling with tariffs on autos and metals already in place, and faces a 20 per cent tariff on other products on Wednesday. Trump has also threatened to slap tariffs on EU alcoholic drinks.
The back-and-forth injected further turbulence into global financial markets, which have fallen steadily since Trump's announcement.
EU commission proposes 25% counter-tariffs on some US imports, document shows
19:59
,
Andy Gregory
The European Commission has proposed counter-tariffs of 25 per cent on a range of US goods on Monday in response to Donald Trump’s levies on steel and aluminium, according to a document reportedly seen by Reuters.
Reporting after the EU warned it was “finalising” a list of countermeasures tonight, with a view to implementing them next Tuesday if US negotiations fail, Reuters said the tariffs on some goods as listed in the document would come into effect on 16 May and others later in the year, on 1 December.
Bourbon was removed from the original list the Commission was weighing in March.
White House economic advisor Miran encourages countries to approach Trump with offers to cut tariffs
19:56
,
Holly Evans
White House economic adviser Stephen Miran on Monday encouraged countries hoping to escape high reciprocal U.S. tariff rates to make offers to President Donald Trump, saying the president would welcome moves to lower barriers to U.S. exports.
Miran told an event hosted by the Hudson Institute think tank that services, where the U.S. has a strong advantage, were also important, but the United States had gotten out of balance with regard to manufacturing.
Miran, who chairs the White House Council of Economic Advisers, said he believed a range of U.S. policies, including pursuing more deregulation, would keep inflation under control.
Watch: Rachel Reeves caught joking about government debt in 'hot mic' moment
19:31
,
Andy Gregory
‘Today will go down in history’
19:06
,
Karl Matchett, Business and Money Editor
Hong Kong’s Hang Seng index dropped more than 13 per cent on Monday, marking one of its worst days on record, while Japan’s Nikkei 225 fell more than seven per cent.
Following huge growth from 2021 to 2024, the Nikkei is now down more than 20 per cent over the past year.
“It’s rare to see double-digit falls in a single day for a major stock index, yet today will go down in history,” said Russ Mould, investment director at AJ Bell.
“In essence, Asia is lumping two horrible days on the market into one. That is the fourth biggest one-day decline ever in the Hang Seng.
“We’re seeing the biggest falls in Asia because it arguably has the most to lose from Trump’s tariffs. Asian countries have thrived from selling goods to the west, with places like the US having been hungry to access cheap labour.”
White House cancels press conference with Netanyahu
18:38
,
Andy Gregory
The White House has cancelled Donald Trump’s planned press conference with Israeli prime minister Netanyahu, who is the first leader to meet with the US president since he unleashed his wave of global tariffs.
The pair are still expected to meet in the Oval Office office where reporters will be present, and are expected to discuss Mr Trump’s tariffs.
Greeting Mr Netanyahu with a handshake, Mr Trump ignored shouted questions from reporters about the tumbling global markets and whether he would lift tariffs on Israel.
The White House did not offer any immediate explanation for why the news conference was cancelled.
Mark Carney warns chances of US recession has shot up and will hit Canada
18:20
,
Andy Gregory
The probability of a US recession has risen significantly thanks to Donald Trump’s tariffs and that will have a major negative effect on the Canadian economy, prime minister Mark Carney has warned.
Opinion | Was Black Monday the day a new global recession started?
17:44
,
Andy Gregory
Our political columnist Andrew Grice writes:
It was Donald Trump’s Black Monday as stock markets around the world plummeted as they judged that his swingeing tariffs are here to stay – for a while, at least. It might soon be followed by what would be Trump’s global recession.
The US president is unrepentant, even though some of his allies are getting jittery. What Trump calls his “medicine” is already harming the patient. Given that Wall Street's leading stock index, the S&P 500, fell on opening by more than 4 per cent, despite Trump urging Americans to stop panic-selling stocks, the day may yet be remembered as one when a new global recession started.
Trump will get the blame, just as John Major, the former prime minister, did after Black Wednesday in 1992, when the UK crashed out of the European exchange rate mechanism. The Conservatives did not recover their economic credibility, and even a growing economy could not prevent a Labour landslide in 1997.
It was a slow death. In contrast, Liz Truss survived as PM for less than a month after her disastrous mini-Budget in 2022 spooked the markets.
That the whole world knows Trump has shot himself in both feet is cold comfort for Keir Starmer. It is dawning on him and his ministers that, even if the UK reduces its 10 per cent tariff by clinching a US trade deal, the UK economy is going to be badly damaged by a global trade war.
Read the full column here with Independent Premium:
FTSE 100 falls 4.38 per cent at close of trading
17:18
,
Andy Gregory
London’s FTSE 100 index fell sharply by 4.38 per cent at the close of trading on Monday, taking the index to its lowest closing price since March 2024.
In the US, the Dow Jones index was down 1.52 per cent, while the S&P 500 was 0.96 per cent lower.
In currency, sterling suffered a heavy fall, slipping by 1.28 per cent to 1.272 against the dollar at London market close.
No cheers for Starmer over Britain’s lower tariff rate
17:04
,
Andy Gregory
Our political correspondent Archie Mitchell reports:
Ministers have been keen to tout the UK’s 10 per cent universal tariff rate, half that of the European Union, as evidence of Sir Keir Starmer’s diplomatic efforts bearing fruit.
The business secretary has held talks with the Trump administration about a trade deal, while Sir Keir has gone out of his way to avoid criticising the US president in a bid to foster good ties.
But, despite his efforts, less than a third of voters think Sir Keir is to thank for Britain’s relatively low tariff level.
A YouGov poll showed just 29 per cent of the public think the lower rate is thanks to a great extent or a fair amount to Sir Keir. Meanwhile, far more, 47 per cent, thought it was not very much or not at all to do with the PM’s hard work behind closed doors.
Trump threatens further 50% tariffs on China
16:44
,
Andy Gregory
Donald Trump has threatened to impose further tariffs of 50 per cent on China, after Beijing retaliated with a like-for-like 34 per cent tariff on US goods last week.
The US president wrote on his Truth Social website on Monday: “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th.
“Additionally, all talks with China concerning their requested meetings with us will be terminated!”
But, in a possible softening of his wider stance, Mr Trump added: “Negotiations with other countries, which have also requested meetings, will begin taking place immediately.”
Mexico would like to avoid imposing reciprocal tariffs on US, president says
16:35
,
Andy Gregory
Mexico’s president Claudia Sheinbaum has said that her government would like to avoid imposing reciprocal tariffs on the US after Donald Trump's sweeping tariff plans – though it cannot be ruled out.
Speaking at her regular morning press conference, Ms Sheinbaum said that economy minister Marcelo Ebrard would continue negotiations with US officials in Washington.
“As much as possible we would like to avoid imposing reciprocal tariffs,” she said. “We won’t rule it out, but we prefer continuing with talks.”
Branson calls for urgent action from US government or 'America will face ruin'
16:04
,
Tara Cobham
Billionaire Richard Brandon has called on the US government to act in the next few hours otherwise “America will face ruin for years to come”.
In a post on X, he said: “The ongoing market response to last week’s US tariff announcement was both predictable and preventable. Even if you agree with the premise of these tariffs, every reasonable effort should be made to give US companies sufficient time to adapt.
“The opposite has happened, and now financial markets everywhere are in free fall, with catastrophic results for ordinary Americans and for the rest of the world. Retirement savings will be wiped out at enormous scale.
“As the dollar is weakening, US consumer prices will rise. And countless small and medium-size enterprises will go, and already are going, bankrupt as a result. This is not a winning long-term strategy. The US government can still turn things around, but it must act in the next few hours.
“This is the moment to own up to a colossal mistake and change course. Otherwise, America will face ruin for years to come.”
(4/4) This is the moment to own up to a colossal mistake and change course. Otherwise, America will face ruin for years to come.
— Richard Branson (@richardbranson) April 7, 2025
Stock market goes haywire with massive swings after ‘fake news’ reports about future of Trump’s tariff plan
15:58
,
Tara Cobham
An apparently untrue report about a possible 90-day pause on President Donald Trump’s widespread tariffs caused massive swings in the stock market today.
Stocks turned positive around 10:30 a.m. in a sudden reversal of recent trends, with the Dow Jones shooting up before falling back down to a loss of 629 points. The S&P 500 also spiked up and down suddenly on Monday morning.
The swings came as CNBC and other outlets reported that National Economic Council Director Kevin Hassett said Trump is considering a 90-day pause on tariffs for all countries other than China. However, there appears to be no evidence Hassett made that claim, and White House Press Secretary Karoline Leavitt called the reports “fake news.”
My colleague Katie Hawkinson reports from Washington DC:
Watch: Starmer vows UK won't be cowed by Trump's tariffs
15:58
,
Tara Cobham
White House describes reports Trump is considering 90-day pause in tariffs as 'fake news'
15:47
,
Tara Cobham
The White House has described reports that Donald Trump is considering a 90-day pause in tariffs as “fake news”.
EU warns it is finalising its list of countermeasures tonight
15:44
,
Tara Cobham
The EU has warned it is finalising its list of countermeasures tonight.
EU trade commissioner Maros Sefcovic said: “When it comes to the volume of counter measures, when it comes to steel, aluminium and derivatives, we are finalising the list tonight.”
Farage calls Trump's tariffs 'excessive'
15:42
,
Tara Cobham
Nigel Farage has called Donald Trump's tariffs a "bit excessive".
"I think it's a bit excessive. Yes, I really do," he told the PA news agency.
"Although he promised he'd do it in the run-up to the American election.
"So you can't say he's breaking his promises, but I think the impact of it - my own view, is the impact of it has been bigger than he could have predicted."
He said he speaks to Mr Trump "far less" now than he did during his first term as US president.
EU's countermeasures on US tariffs to start next week if negotiations fail, warns bloc's trade commissioner
15:40
,
Tara Cobham
EU trade commissioner Maros Sefcovic has said that the EU’s own countermeasures on US tariffs would start next week if negotiations fail.
Sefcovic said on Monday that if negotiations failed to yield an agreement, the EU's own countermeasures on US tariffs, which will start on 15 April, could not be delayed.
He said EU negotiators had not seen engagement that would lead to a mutually acceptable solution, after US President Donald Trump's administration announced last week a sweeping round of tariffs for most imported goods.
He added on Monday that the European Union would not change its VAT system, which he described as an important source of income for member states.
US president Donald Trump's administration has said that VAT - value-added taxes - are an additional trade barrier.
Stocks turn positive on Wall Street in sudden reversal
15:29
,
Tara Cobham
Stocks have turned positive on Wall Street in a sudden reversal and the Dow Jones index has jumped 300 points, erasing a loss of 1,700.
Netanyahu to seek tariff relief in talks with Trump
15:27
Israeli Prime Minister Benjamin Netanyahu will seek to limit the sting of tariffs imposed on his country when he meets US President Donald Trump on Monday, a visit likely to be closely watched by world leaders as global markets spiral downward.
Netanyahu will be the first foreign leader to meet face-to-face with Trump since he announced a sweeping tariff policy last Wednesday.
Under the new policy, Israeli goods face a 17 per cent US tariff. The United States is Israel's closest ally and largest single trading partner.
During midday talks in the Oval Office, the two leaders are also expected to discuss the 18-month-old war in Gaza and the fate of hostages taken from Israel and still held in the Palestinian enclave.
Trump considers 90-day pause in tariffs for all countries except China, says his top economic adviser
15:23
,
Tara Cobham
Donald Trump is considering a 90-day pause in tariffs for all countries except China, the US president’s top economic adviser has said.
CNBC reported the comments were made by White House economic adviser Kevin Hassett today.
His remarks come as the US stock markets roared back after morning losses.
Watch: Starmer tells workers he will back UK car industry ‘to the hilt’
15:06
,
Athena Stavrou
Starmer suggests he's told Trump 'nobody welcomes tariffs' but stressed importance of special relationship
15:06
,
Tara Cobham
Sir Keir Starmer has suggested he has told Donald Trump “nobody welcomes tariffs”.
When asked if he had told the US president that his tariffs are making the world poorer, the UK prime minister told reporerts at a Jaguar Land Rover plant in the West Midlands today: “I’ve been clear throughout and in all my discussions that nobody welcomes tariffs.”
He said they “directly or indirectly damage all of us”.
However, he added that the UK and the US have a “special relationship” that it would be “wrong to simply walk away” from.
Instead he called for the UK to now “step up to the challenges” of Mr Tump’s tariffs.
“It’s not in our interests to simply rip up that relationship,” he said.
'We have to step up' - Starmer
14:57
,
Athena Stavrou
Asked if it was the blunt truth that he could not protect the British people from Donald Trump’s economic measures, Starmer said: “There are undoubtedly challenges, nobody welcomes tariffs but we don’t want to get into a trade war.”
He added the government would continue to talk to US while keeping options on table.
“At a moment like this, we have to shape our future - we have to step up,” he said.
He also said it was important for the UK to have “discussions with others about lowering trade barriers for free trade across the world”.
Wall Street is sinking again as worries deepen over Trump's trade war
14:55
,
Tara Cobham
Wall Street is sinking again, as worries deepen about whether Mr Trump's trade war will torpedo the global economy.
The S&P 500 was down 3.8 per cent in early trading on Monday, coming off its worst week since Covid-19 began crashing the global economy in March 2020.
The Dow Jones Industrial Average was down 1,200 points, and the Nasdaq composite was 4 per cent lower.
A barrel of benchmark US crude oil briefly dropped below 60 dollars for the first time since 2021.
Cars rolling off behind PM could be US-bound
14:53
,
Athena Stavrou
Political correspondent Archie Mitchell writes:
A conveyer belt of finished Range Rovers is rolling on behind the prime minister as he delivers a speech in response to Donald Trump’s tariffs.And, days after Jaguar Land Rover suspended its US exports, many of the cars have their steering wheels on the left - suggesting they could have been US-bound.
It is a visceral reminder for those in the audience of the devastating impact Mr Trump’s global trade war is already having.
Starmer calls for UK to 'rise together as a nation' amid fallout from Trump's tariffs
14:53
,
Tara Cobham
Prime minister Sir Keir Starmer called for the UK to "rise together as a nation" in response to global instability as he acknowledged the challenges posed by Donald Trump's tariffs.
Speaking at a Jaguar Land Rover plant in the West Midlands, Sir Keir said: "These are challenging times, but we have chosen to come here because we are going to back you to the hilt."
He said the visit was a "statement of intent", showing the Government's support.
The prime minister said: This is a moment for cool heads, nobody wins from a trade war, you know that.
"But it's also a moment for urgency, because we've got to rise together as a nation to the great challenge of our age - and it is the great challenge - which is to renew Britain so we're secure in this era of global instability."
Starmer explains relaxation of rules around automotive sales
14:51
,
Athena Stavrou
Sir Keir Starmer has explained the changes the government is making to rules around automotive sales.
The prime minister announced sales of new hybrids that cannot be plugged in will be permitted to continue until 2035.
Changes to the zero emission vehicle (Zev) mandate also mean it will be easier for manufacturers which do not meet EV sales targets to avoid fines.
“We’re going to help car companies in Britain reach targets that support growth,” he told automotive workers on Monday.
“This is the moment we back British business and charge up the electric revolution.
This comes after US President Donald Trump imposed a 25% tariffs on car imports.
Starmer promises UK will only strike deal with US if in national interest
14:51
,
Tara Cobham
Sir Keir Starmer has promised the UK will only strike a deal with the US if it is in the national interest, as “intense” discussions continue.
Speaking from the West Midlands today, the UK prime minister said: “Of course, we wil keep calm and fight for the best deal with the US and we’ve been discussing that intensely over the last few days.”
But he added: “I will only strike a deal if it’s in the national interest.”
Reeves hints fiscal rules are here to stay
14:48
,
Political correspondent Archie Mitchell
Political correspondent Archie Mitchell writes:
Speculation has been rife that Sir Keir Starmer’s declaration of the dawn of a “new era” of trade and economics meant the government’s fiscal rules were in line for a change.
Germany tweaked its own borrowing limits in response to rising global insecurity in the wake of Donald Trump’s return to the White House.
But despite talk of, and hopes that, Rachel Reeves might follow suit in the wake of the US president’s trade war, she backed the existing rules on Monday.
Ms Reeves said increasing uncertainty “means doubling down on economic stability, the basic condition to secure economic growth”.
She added: “It is why this government has stuck to its fiscal rules in the spring statement, even when they were tested, demonstrating that when Britain talks about economic stability, we really mean it, and stability matters even more for working people and for business in an uncertain world.”
Analysis: As expected, there's an initial sell-off beyond the futures markets
14:46
,
Business and money editor Karl Matchett
Business and money editor Karl Matchett writes:
As expected, there's an initial sell-off beyond the futures markets as retail investors and others get involved in the selling. The S&P 500 is down about 3.4 per cent after opening, with the Dow and Nasdaq down 3.7 and 4.3 per cent respectively.
"This domino effect of potential higher prices, weakened demand, reduced production, and potential job cuts, has sent a shockwave through global markets. The uncertainty surrounding the scope and duration of the tariffs, combined with elevated equity valuations after two years of double-digit returns, has fueled a wave of panic selling," says Dan Segal of Warwick Business School.
"In just a few days, both the FTSE 100 and the S&P 500 have declined by roughly 10 per cent, reflecting investor concerns that the worst may still lie ahead.
"Still, the most critical advice in times like these is this: Don’t panic. History shows that equity markets are highly volatile during periods of economic and geopolitical uncertainty; however, they tend to rebound once the dust settles. This may be a moment of turbulence but not necessarily of collapse.”
'We are going to back you to the hilt' - Starmer tells automotive workers
14:44
,
Athena Stavrou
Starmer has re-asserted his support for the automotive industry as he addresses workers at Jaguar-Land Rover.
“These are challenging times but we have chosen to come here because we are going to back you to the hilt,” he said.
“There is no doubt the challenge but this is a moment for cool heads. Nobody wins from a trade war.”
“Its also a moment for urgency because we’ve got to rise together as a nation.”
He added: “This moment has also made something very clear that this is not a passing phase and just as we’ve seen with national security and defence ... and now with our commerce and trade, this is a changing and completely new world.
“An era where old assumptions simply don’t apply any longer.”
Starmer warns of ‘profound’ global economic consequences
14:44
