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    Streeting defends Labour’s national insurance hike as health secretary urges Farage to ‘come clean’ over Reform’s NHS plans

    Wes Streeting defended Labour’s controversial national insurance hike as the health secretary accused Reform UK and the Conservatives of plotting to pull billions of bounds of funding from the NHS.As the tax rise comes into effect today, Mr Streeting has challenged critics including Nigel Farage and Kemi Badenoch to explain how they would pay for a reversal of the policy change. The 2p increase to employer national insurance has been criticised by opposition parties, business chiefs and top economists, who have linked it to the stagnant economy, since it was unveiled by Rachel Reeves back in October. Wes Streeting is being rolled out by Labour as an anti-Reform attack dog More

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    Reform UK candidate accused late Queen of ‘scrounging’ and called for Royals to be jailed

    One of Reform UK’s local election candidates accused Queen Elizabeth of “scrounging” and “sponging” and called for her to be jailed, The Independent can reveal.Mark Wade, council candidate in Chorley Rural West, marked Her Majesty becoming the longest-reigning British monarch with a post on Facebook saying she had spent “a long time scrounging”. He also commented on the late Queen’s visit to Crumlin Road Gaol in north Belfast: “The Queen has just entered an old jail in Belfast, let’s shut the gates and get the rest of her sponging family to join her.” Critics said the comments raise questions about Reform UK’s partiotism More

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    Jaguar Land Rover pauses US shipments as Starmer plots course over Trump’s 10% tariff

    Jaguar Land Rover is pausing shipments to the US as it works to “address the new trading terms” of in the wake of Donald Trump‘s 10 per cent tariff on British goods coming into force.Sir Keir Starmer was expected to spend the weekend making back-to-back phone calls to world leaders about the tariffs, after talking with the Australian prime minister, Anthony Albanese, and the Italian PM, Giorgia Meloni, on Friday. In those calls the leaders agreed that an “all-out trade war would be extremely damaging”.Sir Keir was “clear the UK’s response will be guided by the national interest” and officials would “calmly continue with our preparatory work, rather than rush to retaliate”, a No 10 spokesperson said.On Saturday afternoon, Jaguar said it was “taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans”. Jaguar Land Rover has paused shipments to the US (JLR/PA) More

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    Trump tariffs live: Jaguar Land Rover pauses shipments to US as 10% tariff kicks in for UK

    Trump ally likens BBC host to a ‘kindergartener’ over tariffs before threatening to end interviewJaguar Land Rover will pause shipments of its Britain-made cars to the US for a month in light of president Donald Trump’s tariffs on the UK car industry. The British carmaker said it was suspending shipments while it considers how to mitigate the cost of Mr Trump’s 25 per cent tariff on UK cars. Mr Trump has said the impact of his tariffs plan “won’t be easy” and called for Americans to “hang tough” after a 10 per cent tariff took effect on Saturday. The initial 10 per cent “baseline” tariff, which the UK is subject to, took effect at US seaports, airports and customs warehouses at 12.01am ET (0401 GMT), with higher levies on goods from 57 larger trading partners due to start next week. The UK’s key FTSE-100 stock market suffered its worst one-day drop since the start of the Covid-19 pandemic on Friday, ending a week of havoc on global markets prompted by Mr Trump’s new tariffs war.Sir Keir Starmer will be holding talks with global leaders this weekend as countries consider how to respond.Pictured: Trump goes golfing as world reels from tariffsUS president Donald Trump has gone golfing for the third day in a row as the world reels from his tariffs on global imports.Mr Trump was seen reading a tabloid article with the headline “World War Fee,” and “China: Yeah?” as he arrived at Trump National Golf Club in Jupiter, Florida.Around the same time, Mr Trump posted to his Truth Social platform claiming China would come off worse in the trade war.“China has been hit much harder than the USA, not even close,” he said. “They, and many other nations, have treated us unsustainably badly.“This is an economic revolution, and we will win. Hang tough.” Mr Trump slapped a combined tariff of 54 per cent on Chinese goods earlier this week. Beijing responded by imposing a 34 per cent tariff on US exports to China.Trump reads a tabloid article about China’s response to US tariffs More

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    Starmer under pressure from biggest backers to unpick Brexit after Trump tariffs

    Labour’s biggest financial backers are among the loudest voices pressing Sir Keir Starmer to have a much more ambitious approach to his Brexit reset in the wake of Donald Trump unleashing an international trade war by imposing sweeping tariffs.Trade unions, who were previously divided over Brexit and still provide more than half of Labour’s campaign funding, are now at the forefront of a new push for much closer ties with the EU.Armed with a huge 5,000 voter survey by the pollster who has carried out strategic research for both Labour and the unions, the Trades Union Congress (TUC) has joined with business groups and others to urge Sir Keir to rethink his Brexit red lines.While the prime minister has insisted he will resist what he calls “a false choice” between the EU and US the TUC’s public demands are being reflected in private by many in Labour as well.It follows President Trump imposing a 10 per cent base “reciprocal tariffs” on the UK, half of the 20 per cent slapped on the EU. Other countries such as China, South Korea, Japan and Cambodia faced tariffs of more than 30 per cent.But some specific tariffs including 25 per cent on automobile, steel and aluminium products have hit the UK as well putting at least 25,000 jobs at risk in the car-making sector alone.Prime Minister Sir Keir Starmer (Eddie Mulholland/Daily Telegraph/PA) More

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    Global trade war intensifies and shares tumble as China hits back at Trump tariffs

    Share prices tumbled around the world on Friday – with Britain’s FTSE 100 suffering its worst drop since the start of the Covid-19 pandemic – as the global trade war intensified with China’s retaliatory imposition of a 34 per cent tariff on imports of all US products.Trillions of dollars have been wiped from the markets since Donald Trump announced a range of import taxes on goods from other countries. British exports to the US face a blanket 10 per cent levy. Sir Keir Starmer is due to hold talks with world leaders over the weekend, as nations reel from the economic hit and decide whether to reciprocate with tariffs on Washington. The prime minister was yesterday urged not to retaliate by his predecessor Sir Tony Blair, who said that such a move would not be in the UK’s “best interests”.Economists warn that escalating the situation could generate a spike in inflation and weaken growth, even triggering recession.The collapse in share values creates a big dent in many British pension funds, and there are fears that China will respond to the US tariffs by flooding other countries with cheap exports, further harming British firms. Wall Street saw a second day of bruising losses on Friday, while London’s top stock market fell 4.95 per cent to a five-year low – its biggest single-day decline since March 2020.Downing Street rejected Mr Trump’s claim that the British government is “happy” about the 10 per cent rate, which is half of the 20 per cent levy being imposed on European Union members, and much lower than the rate imposed on many other nations.Aboard Air Force One, Trump told reporters he had had a “very good dialogue” with Sir Keir, adding: “I think he was very happy about how we treated them with tariffs.”But a spokesperson for No 10 was clear, saying “We are disappointed” – and added: “We’ll be engaging with international leaders over the weekend… It is a changing, shifting global economic landscape.”Analysts for AJ Bell estimate that about £3.8 trillion has been wiped off the value of the global stock market since Mr Trump’s announcement, which he billed as “Liberation Day” for the US economy.“It caps off a horrible week for financial markets and dragged share prices even lower,” said Dan Coatsworth, an investment analyst at AJ Bell. “It’s also bad for the world in general, as we now have a repeat of the heightened geopolitical tensions between the US and China that dominated Trump’s first term.” Mr Coatsworth added that the president’s “tactics have caused shockwaves in every corner of the world”.As well as share prices, the value of the US dollar and even gold fell on Friday.US Federal Reserve chair Jerome Powell described the tariffs, along with their likely economic and inflationary impacts, as “significantly larger than expected” and said they were “highly likely” to lead to “at least a temporary rise in inflation” in the US.In the stand-off between the US and China, Beijing imposed reciprocal tariffs and announced controls on exports of medium and heavy rare-earths, including samarium, gadolinium, terbium, dysprosium, lutetium, scandium and yttrium, to the US.In Japan, prime minister Shigeru Ishiba said Mr Trump’s tariffs had created a “national crisis” as a plunge in banking shares set Tokyo’s stock market on course for its worst week in years.Investment bank JPMorgan said it now believes there is a 60 per cent chance of the global economy entering recession by the end of the year, up from 40 per cent previously.EU trade commissioner Maros Sefcovic said he would speak to his US counterparts before responding.“The EU will respond in a calm, carefully phased, and above all, unified way, as we calibrate our response,” he said on social media. “We will not shoot from the hip.”The prime minister has said he is reluctant to make a quick decision on tariffs.In the House of Commons this week, Liberal Democrat leader Sir Ed Davey urged the prime minister to team up with European and Commonwealth countries to “stand against Trump’s tariffs and for free trade”.Sir Keir replied: “I really do think it is not sensible to say the first response should be to jump into a trade war with the US.” More

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    John Rentoul answers your Trump tariffs questions from the ‘Brexit dividend’ to chlorinated chicken

    Donald Trump’s declaration of “Liberation Day” – a dramatic unveiling of sweeping new tariffs on US imports – has reignited questions about America’s global role, its economic influence, and what it all means for Britain post-Brexit.With the UK hit by a 10 per cent tariff, compared with 20 per cent for the EU, some Brexiteers were quick to claim a win. But if being slightly less penalised by a volatile US president is the best economic case for Brexit, it’s a shaky argument. There’s still no comprehensive UK-US trade deal, and experts warn that the so-called “Brexit dividend” has yet to materialise.In a live Q&A for The Independent, I answered your questions on Trump’s trade war, the UK’s response, and whether Keir Starmer can steer a better course with the EU. We discussed soft power, chlorinated chicken, the single market, and whether China really stands to gain.What emerges is a picture of a world in flux – and a UK still feeling its way through the fog of Brexit and global disruption. Here’s what you asked during the “Ask Me Anything” event – and how I answered.Q: Trump calls this ‘liberation day’ – but is he actually pushing the world away from the US dollar and undermining America’s soft power?pundaA: That is an interesting question. I don’t think Trump is completely detached from reality, but he is certainly good at pretending that bad news is just a blip in the prelude to Making America Rich Again. I think that now he has impressed his voters with the idea that he is standing up for them against foreigners, many of the tariffs will be dropped, with Trump proclaiming huge concessions and unprecedented trade deals as cover. There was an interesting, if depressing, study of the effect of tariffs during Trump’s first term – they were mostly selective and short-lived, but they made a lot of his rust-belt voters slightly worse off. The study found that the voters worst affected were those most in favour of tariffs.Q: Time to talk with the EU and be nice to them this time, surely?CoulsdonguyA: Keir Starmer is talking to the EU and trying to be nice to them, because it made sense before Trump’s trade war to ease the friction on UK-EU trade as much as possible without rejoining the single market – and if we had rejoined the single market, we might have been hit by the EU tariff of 20 per cent, so there is a genuine Brexit dividend in the form of being hit less hard than the EU.Ministers have been pretty robust about chlorinated chicken and hormone-fed beef. Jonathan Reynolds, the trade secretary, said yesterday that the government would abide by Labour’s “clear manifesto position to maintain that regime” – namely food production standards.(Although I personally don’t have a problem with US chicken or beef, provided it is clearly labelled.)Q: How might the UK go about capitalising on this with our EU neighbours?MattA: It is an opportunity in the sense that the UK will be hit less hard, and may be able to mitigate some of that damage by having EU-based companies that export to the US move here, but it is the opposite of an opportunity in any other sense of the word!Q: Is there any point in the UK trying to negotiate with Trump?PaulKA: I think we should do both: negotiate and not retaliate. I think he will reverse on tariffs at some point, and if he needs a “great” trade deal to cover his retreat, that should be fine by us.Q: If rejoining the single market makes economic sense, why won’t Starmer act – especially with a huge majority and Brexit now a minority view?KerrimanA: A counterintuitive question, at a point when not being in the single market means the UK faces 10 per cent tariffs on US exports instead of 20 per cent! But generally it remains true that we would be better off in the single market, while, for some voters, sovereignty is more important than GDP.Politically, though, Labour trying to reverse Brexit would lose a chunk of voters without gaining any, because those who are pro-EU are voting Labour anyway – unless the Lib Dems can use the issue to force Labour voters to switch to them.Q: Is he a genius who’ll help the US at the world’s expense – or the opposite, bringing harm to everyone?FishingInTheRiverOfLifeA: Trump is good at selling a simple political message, which is that he is going to stop those “cheating” and “pillaging” foreigners from taking advantage of the US. How much he believes in the economics of protection is almost a meaningless question. It is worth remembering that British politicians such as Joseph Chamberlain thought that tariffs were a good idea, and the issue split the UK (and UK parties) for decades, even though free trade usually had the upper hand. Chamberlain thought tariffs were a terrific wheeze because they would raise a lot of money and allow the abolition of income tax – or so he thought.Q: If China play their cards well, could they come out on top in the end?pundaA: No. Everyone loses from a trade war. But in relative terms, China’s rise to world economic domination will continue. It does not need any action on the part of the Chinese government: Chinese companies will respond to market incentives and try to sell where they do not face tariffs.Q: Can you explain what tariffs we already levy on imports from the USA? Trump said 10 per cent – is that correct?NigePA: No, the 10 per cent is not correct. I have heard Jonathan Reynolds, the trade secretary, say that the average tariff the UK charges on imports from the US is 4 per cent. We impose tariffs on goods including beef, cars and denim jeans. Before Trump, the average US tariff on UK goods was about 3 per cent, according to the World Trade Organisation.Every respectable economist that I have seen has said that the so-called formula used by the USTR (US Office of the Trade Representative) is nonsense. Just because it uses Greek letters doesn’t make it formal economics. It is like a supposedly scientific equation in a shampoo advert. What the “formula” does is roughly relate the tariff rate to the size of a country’s trade surplus with the US – with a minimum of 10 per cent. So that countries that sell more to the US than they buy from it have higher tariffs. The UK imports about the same as it exports, which is why it is on the lowest rate of 10 per cent.These questions and answers were part of an ‘Ask Me Anything’ hosted by John Rentoul at 1pm BST on Friday 4 April. Some of the questions and answers have been edited for this article. You can read the full discussion in the comments section of the original article.For more insight into UK politics, check out John’s weekly Commons Confidential newsletter. The email, exclusive to Independent Premium subscribers, takes you behind the curtain of Westminster. If this sounds like something you would be interested in, head here to find out more. More

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    Trump tariffs live: China hits US with huge 34% tariff after FTSE drops in market meltdown

    Trump ally likens BBC host to a ‘kindergartener’ over tariffs before threatening to end interviewChina 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.Canada unemployment rises for first time since 2022Canada’s total employment fell and the unemployment rate rose in March, new official data showed, as the uncertainty around US tariffs and their subsequent implementation forced companies to pause hiring and spurred some layoffs. The country shed a net 32,600 jobs last month, in what marks the first decrease in more than three years. This was driven by a steep decline in full-time work, Statistics Canada said. The employment decline followed largely flat job growth in February and a robust gain of 211,000 new jobs from November to January. The unemployment rate rose to 6.7 per cent in March from 6.6 per cent a month earlier.“The wheels may be starting to fall off the Canadian labor market,” Andrew Grantham, senior economist at CIBC Capital Markets, wrote in a report. Analysts polled by Reuters had forecast a net job gain of 10,000 people and had estimated the unemployment rate to rise to 6.7 per cent.Andy Gregory4 April 2025 15:49US labour market shows resilience prior to Trump’s tariff announcementThe US economy added far more jobs than expected in March, prior to Donald Trump’s tariffs – which is likely to test the American labour market’s resilience in the months ahead.The US Labour Department’s closely watched employment report on Friday showed nonfarm payrolls – which excludes those in agriculture, private households, and not-for-profits – increased by 228,000 jobs last month, after a downwardly revised 117,000 rise in February.Economists polled by Reuters had forecast payrolls advancing by 135,000 jobs after a previously reported 151,000 rise in February. Estimates ranged from 50,000 to 185,000. Part of the rise in payrolls was a rebound after freezing temperatures curbed activity in January and February.“This is a drop of good news in a sea of uncertainty, a footnote given the barrage of activities this week,” said Olu Sonola, head of US economic research at Fitch Ratings. “However, this is looking in the rear-view mirror, next month’s jobs report will be more consequential.”Andy Gregory4 April 2025 15:35‘Like an operation performed without anaesthesia’Donald Trump has said Americans may feel “some pain” because of tariffs, but he has also said the long-term goals – including getting more manufacturing jobs back to the United States – are worth it. On Thursday, he likened the situation to a medical operation, where the US economy is the patient.“For investors looking at their portfolios, it could have felt like an operation performed without anaesthesia,” Brian Jacobsen, chief economist at Annex Wealth Management, told Reuters.But Jacobsen also said the next surprise for investors could be how quickly tariffs get negotiated down. “The speed of recovery will depend on how, and how quickly, officials negotiate,” he said.Andy Gregory4 April 2025 15:15Nasdaq enters ‘bear market’ territoryAfter opening 3 per cent lower today, the tech-heavy Nasdaq has dropped more than 20 per cent from its all-time closing high touched in December – putting it on course to confirm a bear market. Andy Gregory4 April 2025 14:48Trump says China ‘played it wrong’ in retaliation against US tariffsDonald Trump has claimed that China “played it wrong” after Beijing retaliated against new US tariffs, unveiling countermeasures that included additional duties of 34 per cent on all US goods. “China played it wrong, they panicked – the one thing they cannot afford to do!” Mr Trump wrote in all caps in post on his social media platform.Earlier, the US president wrote, also in all caps: “To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!”US President Donald Trump signed an executive order giving TikTok an extension until April 5 (Niall Carson/PA) More