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.
Xi Jinping to visit southeast Asian countries amid escalating US-China trade tensions
Chinese president Xi Jinping will make his first official foreign trip of the year from Monday to Friday, visiting Vietnam, Malaysia, and Cambodia amid escalating US-China trade tensions.
Beijing said Mr Xi is visiting Vietnam at the invitation of president Luong Cuong, marking his first trip there since December 2023.
Mr Xi will visit Malaysia from 15-17 April and then ravel to Cambodia on Thursday next week.
Will the bonds market bring down Donald Trump?
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:
Nigel Farage compares Donald Trump to Liz Truss – ICYMI
Reform UK leader Nigel Farage has compared good friend Donald Trump’s trade war to Liz Truss’s disastrous 49-day stint as prime minister.
“Do you know what, I think Trump did too much too soon, rather like Liz Truss did a couple of years ago,” he told LBC.
“I’ve never in my life before seen stock markets fall quickly and bond markets fall at the same time.
“As for the slugging it out with China, who’s going to win? Right now? I just don’t know.”
Watch: Republican senator admits he doesn’t know Trump’s ‘endgame’
German finance minister: EU is ready to respond if trade talks with U.S. unsuccessful
The European Union will be ready to respond to tariffs if negotiations with the United States do not work, German Finance Minister Joerg Kukies said on Friday.
“The US side has to be aware that if negotiations do not work, then we will have another discussion around response mechanisms,” Kukies said in Warsaw ahead of a meeting of EU finance ministers.
UK ‘resolved to get best deal’ with US despite American doubts about carve out
The UK is “resolved” to do everything it can to secure the “best deal possible” with the US, Rachel Reeves has said, after a senior Trump adviser poured cold water on the idea of tariff concessions.
Asked if she was losing confidence in the prospect of a US trade deal and pivoting to other partners instead, the Chancellor insisted the UK remained in negotiations with the Americans.
Speaking at Downing Street, she told reporters: “We continue to engage with our counterparts in the United States, and of course we want to secure the best deal possible for British jobs and British industry. And we are absolutely … resolved to do everything we can.
“But, at the same time, we also want to improve trading relations with other countries around the world.”
Watch: Trump accused of ‘market manipulation’ over 90-day tariff pause
UK warned not to waste trade concessions to secure Trump deal as hopes of avoiding tariffs fade
Sir Keir Starmer has been warned against sacrificing too much in an attempt to secure a trade deal with Donald Trump, as hopes of avoiding tariffs appear to be fading.
Meanwhile, UK ministers appear to be increasingly downbeat about the prospect of a US-UK deal, with health minister Stephen Kinnock admitting that it might take some time. It comes despite officials previously insisting that talks were at an “advanced stage”.
Starmer holds calls with regional leaders about tariffs
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
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.
