Donald Trump has insisted that China wants a trade deal “badly”, while Beijing says it is planning a US imports block.
In the post on Truth Social, the US president claimed China just “don’t know how to get it started”.
Mr Trump said Washington will impose an extra 50 per cent levy on top of the existing 54 per cent tariff on Chinese imports if Beijing does not withdraw the 34 per cent tariffs it had imposed on US products last week. The total new levies could climb to 104 per cent on Chinese goods imported into the US this year.
The Chinese foreign ministry vowed its country would “fight till the end”, amid reports it is preparing for a US imports block, as it accused America of “typical unilateralism and protectionist economic bullying”.
It is not yet clear what counter-measures Beijing is planning to impose, although the BBC reported, citing state media, that the US agricultural sector could be impacted, including a potential total ban on poultry. There are also reports the cooperation between the two countries on tackling the fentanyl trade could end. And a possible ban on US films being shown in cinemas in China has also been suggested, according to the broadcaster.
Labour sister party calls for focus on communities in response to Trump tariffs
Labour’s hugely influential sister party has called for the government to ramp up its focus on communities in response to Donald Trump’s tariffs.
The Co-op Party, represented by 41 Labour MPs including business secretary Jonathan Reynolds, said community and member-owned businesses must be central to the government’s response to the unfolding trade war.
Labour committed in its manifesto to doubling the size of the co-operative sector. But Co-op general secretary Joe Fortune said Mr Trump’s tariffs are an opportunity for a “new economic settlement for communities”.
“Now is the time for the Government to back what works: putting power and resources in the hands of communities to shape their own future,” Mr Fortune said.
He added: “Co-operative businesses keep wealth local – they are more resilient, more long-lasting and more equitable. And crucially, they put both power and wealth in the hands of working people.”
What happens next on the stock market after ‘bloodbath’ of Trump’s tariffs?
Even Stateside, where the stock market rout has been so pronounced following the escalation of Trump’s potential trade war, S&P 500 futures were showing a rise of more than 1.3 per cent.
Investors were finally getting some relief from the sharp drops and some were even cautiously looking to buy back in. But is this really the end of the stock market’s reaction to the tariffs? Business and money editor Karl Matchett reports:
FTSE 100 on track for best day in more than three years
The FTSE 100 is on track to having its best day in more than three years.
The gains are set to bring some relief to investors after stock prices around the world plunged in value since US President Donald Trump’s tariffs announcement last Wednesday.
US prioritising allies not China in trade talks, economic adviser Hassett says
US trade negotiators are prioritising allies as they move forward on trade and are focused on big trading partners that have had big trade surpluses for years with the United States, White House economic adviser Kevin Hassett said on Tuesday.
“The president will decide when and if to talk with China, but right now, we’ve received the instruction to prioritize our allies and our trading partners like Japan and Korea and others,” Hassett said in an interview with Fox News.
UK is keeping its options on table for retaliating to US tariffs if necessary, Starmer says
The UK is keeping its options on the table for retaliating to US tariffs “if necessary”, Sir Keir Starmer has told a senior group of MPs.
Asked about the Government’s response to the tariffs, the Prime Minister told the Liaison Committee: “Obviously we have to keep our options on the table and do the preparatory work for retaliation if necessary.
“But I think that trying to negotiate an arrangement which mitigates the tariffs is better.”
He insisted Donald Trump’s tariffs were not a “temporary passing phase” but part of a “changing world order”.
The Prime Minister said he wanted to ensure the UK economy is “resilient and thriving” and said changes to the zero emissions vehicle mandate and clinical trials announced on Monday were aimed at paving the way for this.
Asked if the Government could intervene to prevent recession, similar to steps taken during the Covid pandemic, the Prime Minister emphasised ministers were prioritising support that was “more in the nature of breaking down barriers that are in the way” rather than spending cash.
What counter-measures is China considering in response to US tariffs
It is not yet clear what counter-measures Beijing is planning to impose, although the BBC reported, citing state media, that the US agricultural sector could be impacted, including a potential total ban on poultry.
There are also reports the cooperation between the two countries on tackling the fentanyl trade could end.
And a possible ban on US films being shown in cinemas in China has also been suggested, according to the broadcaster.
All options on the table in relation to Scunthorpe, Starmer confirms
Political correspondent Archie Mitchell writes:
Sir Keir Starmer has said the nationalisation of British Steel’s Scunthorpe plan is “on the table”, with the closure of its blast furnaces looming.
There have been calls for temporary nationalisation amid fears of thousands of job losses.
Asked about fears over the potential closure of the plant, the prime minister said: “I know first hand the impact that any loss of capacity at Scunthorpe would have on the workforce and the community and the country.
“We will keep talking. We have made an offer, but all options are on the table.”
Will interest rates be affected by Trump tariffs and when is the next Bank of England review?
Altering the base rate is one of the ways the BoE keeps inflation under control, helps to stimulate spending and generally aims to control economic growth in line with government aims.
Business and money editor Karl Matchett takes a look:
ANALYSIS: Coming hours should tell us much more about investor sentiment in US
Business and money editor Karl Matchett writes:
The US stock markets are open and the coming hours should tell us much about investor sentiment.
That’s clearly slightly more positive today than the past few days, as the S&P 500 opens more than three per cent higher and the Nasdaq follows suit at 3.65pc, but it’s still worth being aware that any comments or updates across the workday Stateside can quickly turn matters in either direction.
Treasury Secretary Scott Bessent pointed to the start of bilateral trade talks with Japan as a positive point, mitigating the negative tones of China’s accusations of the tariffs being a “mistake”.
Today will begin to show whether investors feel the worst has now passed in quick fashion, or if this is merely a slight reprieve before uncertainty reigns again.
PM: There is ‘a whole host of things’ we are looking at
Political correspondent Archie Mitchell writes:
Sir Keir Starmer has said there is “a whole host of things” the government is considering beyond what it has announced so far in response to the trade war.
The prime minister was asked what changes he is considering “other than what you’ve already put in place”.
Sir Keir added: “Oh yeah, there is a whole host of things. I’m starting with the sectors that are most obviously impacted.
“I’ve started with the three sectors likely to be most impacted. But I’m absolutely clear in my own mind that what we’re doing in terms of going further and faster needs to be across the board.”
