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    China raises tariffs on US goods to 125% as Xi urges EU to resist Trump ‘bullying’

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    China has raised its tariffs on US products to 125% in the latest salvo of the trade dispute with Washington, just hours after Xi Jinping said there were “no winners in a tariff war”.Xi made the comments during a meeting with the Spanish prime minister in which he invited the EU to work with China to resist “bullying”, part of an apparent campaign to shore up other trading partners.The Chinese commerce ministry announced on Friday that it was raising the 84% tariffs on all US imports to 125%, again saying that China was ready to “fight to the end”. The statement also suggested it may be Beijing’s last move in the tit-for-tat tariff raises as “at the current tariff level, there is no market acceptance for US goods exported to China”.“If the US continues to impose tariffs on Chinese goods exported to the US, China will ignore it,” it said, flagging that there were other countermeasures to come.Some markets continued to tumble on Friday, as the French president, Emmanuel Macron, described the US president’s 90-day tariff pause – which sets most tariffs at 10% until July – as “fragile”.Asian indices followed Wall Street lower on Friday, with Japan’s Nikkei down nearly 5% and Hong Kong stocks heading towards the biggest weekly decline since 2008. Oil prices were also expected to drop for a second consecutive week.Chinese officials have been canvassing other trading partners about how to deal with the US tariffs, after the country was excluded from Trump’s 90-day pause of the steepest global tariffs. Instead the US president made consecutive increases to duties on Chinese imports, which are now 145%.On Friday, Xi welcomed Spain’s Pedro Sánchez, after also talking to counterparts in Saudi Arabia and South Africa. According to the official Chinese summary of the talks, Xi said “there will be no winners in a tariff war, and going against the world will isolate oneself”, in an apparent reference to the US.“China and the EU should fulfil their international responsibilities, jointly maintain the trend of economic globalisation and the international trade environment, and jointly resist unilateral bullying, not only to safeguard their own legitimate rights and interests, but also to safeguard international fairness and justice, and to safeguard international rules and order,” the summary said Xi told Sánchez.Spain said Sánchez told Xi his country favoured a more balanced relationship between the EU and China based on negotiations to resolve differences and cooperation in areas of common interest.Xi plans to travel to south-east Asia, including Vietnam and Cambodia, next week.Macron wrote on X early on Friday that Trump’s partial tariff suspension, pausing new rates on various countries that would have risen as high as 50%, “sends out a signal and leaves the door open for talks. But this pause is a fragile one.”He added: “This 90-day pause means 90 days of uncertainty for all our businesses, on both sides of the Atlantic and beyond.”Battered financial markets were given a brief reprieve on Wednesday when Trump decided to pause duties on dozens of countries. However, his escalating trade dispute with China, the world’s second-largest economy, has continued to fuel fears of recession and further retaliation.The US treasury secretary, Scott Bessent, tried to assuage the fears of sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations, and Trump had expressed hope of a deal with China.But the uncertainty in the meantime extended some of the most volatile trading since the early days of the Covid-19 pandemic.The US’s S&P 500 index ended 3.5% lower on Thursday and was now down about 15% from its all-time peak in February. Some analysts believe stocks have further to fall owing to the uncertainty surrounding the US tariff policy.Bessent shrugged off the renewed market sell-off on Thursday and predicted that striking deals with other countries would bring more certainty.The US and Vietnam agreed to begin formal trade talks after Bessent spoke to the Vietnamese deputy prime minister, Ho Duc Phoc, the White House said.The south-east Asian manufacturing hub is prepared to crack down on Chinese goods being shipped to the US via its territory in the hope of avoiding tariffs, Reuters reported on Friday.Taiwan’s president said his government would also be among the first batch of trading partners to enter negotiations. Taiwan, listed for a 32% tariff, has offered zero tariffs as a basis for talks.Japan’s prime minister, Shigeru Ishiba, meanwhile, has set up a taskforce led by his close aide that hopes to visit Washington next week, according to local media.View image in fullscreenWhile Trump suddenly paused his “reciprocal” tariffs on other countries hours after they came into effect this week, he did not include China, instead increasing duties on Chinese imports as punishment for Beijing’s initial move to retaliate.Trump had imposed tariffs on Chinese goods of 145% since taking office, a White House official said.Meanwhile, Trump told reporters at the White House he thought the US could make a deal with China, but he reiterated his argument that Beijing had “really taken advantage” of the US for a long time.“I’m sure that we’ll be able to get along very well,” the US president said, referring to Xi. “In a true sense, he’s been a friend of mine for a long period of time, and I think that we’ll end up working out something that’s very good for both countries.”Xi and Trump are not known to have spoken since before Trump’s inauguration. Beijing has said it has no intention of backing down to what it terms as Trump’s “bullying” with the tariffs.“We will never sit idly by and watch while the legitimate rights and interests of the Chinese people are infringed, nor will we sit idly by as international economic and trade rules and the multilateral trading system are undermined,” the Chinese foreign ministry spokesperson, Lin Jian, said on Thursday.As well as retaliatory tariffs, Beijing has also restricted imports of Hollywood films, and put 18 US companies on trade restriction lists.The commerce ministry said China’s door was open to dialogue but this must be based on mutual respect.The US tariff pause also does not apply to duties paid by Canada and Mexico, whose goods are still subject to 25% fentanyl-related tariffs unless they comply with the US-Mexico-Canada trade agreement’s rules of origin.With trade hostilities persisting among the top three US trade partners, Goldman Sachs estimates the probability of a recession at 45%.Even with the rollback, the overall average import duty rate imposed by the US is the highest in more than a century, according to Yale University researchers.It also did little to soothe business leaders’ worries about the fallout from Trump’s trade dispute and its chaotic implementation: soaring costs, falling orders and snarled supply chains.One reprieve came, however, when the EU said it would pause its first counter-tariffs. 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      Will global climate action be a casualty of Trump’s tariffs?

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      Donald Trump’s upending of the global economy has raised fears that climate action could emerge as a casualty of the trade war.In the week that has followed “liberation day”, economic experts have warned that the swathe of tariffs could trigger a global economic recession, with far-reaching consequences for investors – including those behind the green energy projects needed to meet climate goals.Fears of a prolonged global recession have also tanked oil and gas prices, making it cheaper to pollute and more difficult to justify investment in clean alternatives such as electric vehicles and low-carbon heating to financially hard-hit households.But chief among the concerns is Trump’s decision to level his most aggressive trade tariffs against China – the world’s largest manufacturer of clean energy technologies – which threatens to throttle green investment in the US, the world’s second-largest carbon-emitter.‘A tragedy for the US’The US is expected to lag farther behind the rest of the world in developing clean power technologies by cutting off its access to cheap, clean energy tech developed in China. This is a fresh blow to green energy developers in the US, still reeling from the Trump administration’s vow to roll back the Biden era’s green incentives.Leslie Abrahams, a deputy director at the Center for Strategic and International Studies (CSIS) in Washington DC, said the tariffs would probably hinder the rollout of clean energy in the US and push the country to the margins of the global market.Specifically, they are expected to drive up the price of developing clean power, because to date the US has been heavily reliant on importing clean power technologies. “And not just imports of the final goods. Even the manufacturing that we do in the United States relies on imported components,” she said.The US government’s goal to develop its manufacturing base by opening new factories could make these components available domestically, but it is likely to take time. It will also come at considerable cost, because the materials typically imported to build these factories – cement, steel, aluminium – will be subject to tariffs too, Abrahams said.“At the same time there are broader, global economic implications that might make it difficult to access inexpensive capital to build,” she added. Investors who had previously shown an interest in the US under the green-friendly Biden administration are likely to balk at the aggressively anti-green messages from the White House.Abrahams said this would mean a weaker appetite for investment in rolling out green projects across the US, and in the research and development of early-stage clean technologies of the future. This is likely to have long-term implications for the US position in the global green energy market, meaning it will “cede some of our potential market share abroad”, Abrahams added.Instead, countries like China are likely to divert sales of their clean energy tech away from the US to other countries eager to develop green energy, Abrahams said. “So on the one hand, that should help to accelerate adoption of clean energy in those countries, which is good for emissions, but for the US, that is future market share that we’re ceding,” she said.‘Clean energy is unstoppable, with or without Trump’It’s important to distinguish between the US and the rest of the world, according to Kingsmill Bond, a strategist for the energy thinktank Ember.“The more the US cuts itself off from the rest of the world, the more the rest of the world will get on with things and the US will be left behind. This is a tragedy for the clean energy industry in the US, but for everyone else there are opportunities,” he said.Analysis by the climate campaign group 350.org has found that despite rising costs and falling green investment in the US, Trump’s trade war will not affect the energy transition and renewables trade globally.It said the US was already “merely a footnote, not a global player” in the race to end the use of fossil fuels. Only 4% of China’s clean tech exports go to the US, it said, in a trade sector where sales volume grew by about 30% last year.“Trump’s tariffs won’t slow the global energy transition – they’ll only hurt ordinary people, particularly Americans,” said Andreas Sieber, an associate director at 350.org. “The transition to renewables is unstoppable, with or without him. His latest move does little to impact the booming clean energy market but will isolate the US and drive up costs for American consumers.”View image in fullscreenOne senior executive at a big European renewable energy company said developers were likely to press on with existing US projects but in future would probablyinvest in other markets.“So we won’t be doing less, we’ll just be going somewhere else,” said the executive, who asked not to be named. “There is no shortage of demand for clean energy projects globally, so we’re not scaling back our ambitions. And excluding the US could make stretched supply chains easier to manage.”Countries likely to benefit from the fresh attention of renewable energy investors include burgeoning markets in south-east Asia, where fossil fuel reliance remains high and demand for energy is rocketing. Australia and Brazil have also emerged as countries that stand to gain.“In times like these, countries will be increasingly on the hunt for domestic solutions,” Bond said. “And that means clean energy and local supply chains. There are always climate reasons to go green, but there are national security reasons now too.”The challenge for governments hoping to seize the opportunity provided by the US green retreat will be to assure rattled investors that they offer a safe place to invest in the climate agenda.Dhara Vyas, the chief executive of Energy UK, the UK industry’s trade body, said: “Certainty has always been the thing that investors say they need. The UK is seen as a stable country with a stable government, but now more than ever we need to double down on giving certainty to investors.”“Investors do like certainty,” Bond agreed. “But they also like growth and opportunity, so that’s why there is some confidence that they will continue to deploy capital in the sector.”‘The US still matters’Although the green investment slowdown may be largely limited to the US, this still poses concerns for global climate progress, according to Marina Domingues, the head of new energies for the consultancy Rystad Energy.“The US is a huge emitter country. So everything the US does still really matters to the global energy transition and how we account for CO2,” she said. The US is the second most polluting country in the world, behind China, which produces almost three times its carbon emissions. But the US’s green retreat comes at a time when the country was planning to substantially increase its domestic energy demand.After years of relatively steady energy demand, Rystad predicts a 10% growth in US electricity consumption from a boom in AI datacentres alone. The economy is also likely to require more energy to power an increase in domestic manufacturing as imports from China dwindle.In the absence of a growing energy industry, this is likely to come from fossil fuels, meaning growing climate emissions. The US is expected to make use of its abundance of shale gas, but it is planning to use more coal in the future too.In the same week that Trump set out his tariffs, he signed four executive orders aimed at preventing the US from phasing out coal, in what climate campaigners at 350.org described as an “abuse of power”.Anne Jellema, the group’s executive director, said: “President Trump’s latest attempt to force-feed coal to the US is a dangerous fantasy that endangers our health, our economy and our future.” More

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      After losing homes and businesses, LA wildfire victims face a hurdle to rebuilding: Trump’s tariffs

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      Cory Singer, co-owner of the homebuilding firm Dolan Design & Build, raced to start construction as quickly as possible in the wake of the Los Angeles wildfires. He was determined to stay ahead of the demand surge he saw coming and eager to help his clients begin to rebuild their lives.The firm broke ground in the Pacific Palisades on Saturday – one of the first companies to do so.But by that time, Singer had a new crisis to contend with: tariffs.Singer, whose firm is currently working on 10 homes in the Palisades, is in talks with clients to place shipping containers on their burned lots and store construction materials there, allowing him to order and stockpile materials in bulk before tariff price increases hit the market.“I’m definitely nervous,” he said.The Trump administration announced, walked back, and continually modified tariff policies in recent weeks, throwing the global stock market into chaos. The tariffs are widely expected to substantially increase construction costs in California and across the country.Singer is already dealing with tariff-related price hikes. One of his tile vendors placed a tariff surcharge on an order on 2 April, the same day the Trump administration announced sweeping tariffs, even though the materials had already been imported. Singer is especially worried about materials like plumbing, tiles and fixtures, which are often imported from China, and he is advising clients to factor in a 10% contingency to their budgets in anticipation of the costs.“If you don’t spend it, great,” he said, “but at least mentally prepare.”Three months after the worst wildfires in Los Angeles’s recent history flattened miles of city blocks and killed 30 people, signs of life are emerging. Insurance payouts have begun arriving. Contractors have plastered streets in Altadena and the Palisades with flyers and signs advertising their services. The Army Corps of Engineers is slowly clearing and flattening lots, replacing the charred and toxic mess of cars, washing machines and chimneys with the blank canvases of empty lots.View image in fullscreenBut homeowners, contractors, architects and developers across fire-ravaged Los Angeles are girding themselves for the tariffs. For homeowners seeking to rebuild, the tariffs add a new layer of stress to the uncertainties of navigating insurance, mortgages, short-term housing and piecing together plans for the future.The Trump administration is currently levying a 10% tariff on most countries, a 25% tariff on steel, aluminum and cars and car parts, and a massive 125% tariff on Chinese goods. The administration on Wednesday retreated on further planned global hikes after news of the tariffs prompted trillions in stock market losses worldwide, but Angelenos remain uncertain about what this means for their homes and plans.In Altadena, a middle-class neighborhood with fewer resources than the wealthy Palisades, the strain is especially acute. Homeowners worry tariffs will hinder their ability to afford rebuilding and exacerbate already widespread issues with underinsurance.“It’s really scary,” said Ken Yapkowitz, a longtime Altadena resident who lost his home and two rental income properties in the Eaton fire.Yapkowitz is waiting to see what his final insurance payouts will be and starting to map out how to rebuild his properties. He had already been factoring in a 25% bump in materials costs before the tariffs were announced, he said, and figured there would be a surge in demand for materials and labor. He expects tariffs to add substantial costs, and wonders if he will be able to rebuild on his lots as planned.Jose Flores, owner of JV Builders & Development, a small business in Pasadena, said many of his Altadena clients want to rebuild. But he worries that tariffs, paired with a painfully slow permitting process and other skyrocketing costs, will cause them to change their minds. He has three clients in the process of drawing up plans with architects, but many others have called him for estimates only to disappear.“By the time people are ready to start construction, I believe the prices are going to be higher,” he said. Flores has noticed the prices of lumber, copper and roofing tick up in recent months. But he can’t afford to stockpile materials, he said, and has no place to store them even if he could. He has no choice but to wait and see what happens.“I think that’s the case for most of us contractors in the area,” Flores said.Following the tariffs’ announcement, the California governor, Gavin Newsom, asked his administration to pursue independent trade relationships with other countries and to explore ways to protect access to construction materials in the wake of the California wildfires. But he did not specify what measures the state could deploy to do that.Flores, the contractor, said he doubted that the governor’s office could actually rein in prices.Newsom’s office did not respond to a request for comment.‘We just don’t know right now’Some residents and business owners are already seeing the tariffs affect wildfire response. Brett Taylor, an Altadena resident who owns a local window and door supplier and who lost his home in the Eaton fire, said his suppliers mostly manufacture domestically, but that many of them source parts from abroad. In late March, he reached out to approximately 10 window vendors to ask whether they would be open to providing package discounts to fire victims. Almost all of them said yes.But before the deals could be finalized, the administration announced tariffs. At least one of Taylor’s vendors walked back their commitment, citing price uncertainty, and Taylor anticipates others will do the same in coming days.View image in fullscreenOthers are tapping personal connections and devising makeshift plans to try to defray costs. James Peddie, an Altadena realtor who lost his home, has been helping develop plans for a group of homeowners hoping to rebuild collectively. He knows from his years in construction that a substantial portion of southern California’s lumber is imported from Canada, and when tariffs were announced, he understood that meant increased costs.Peddie went to high school in Montana, and has friends in the lumber industry there. He also knows a builder who personally went to Oregon to source lumber when prices soared during the rebuilding of Paradise, California, after the devastating 2018 Camp fire.So he called up his high school friends with a question: can you help me source lumber for LA?They were eager to help. They promised to keep their commissions low and to keep him updated on price fluctuations. “They’re people I can trust,” he said. “We can probably get the lumber for a really good deal.”This shift – from purchasing overseas to domestically – is exactly what the administration hopes the tariffs will prompt.But with the rebuilding process still in its earliest phases, and plans and permits far from finalized and approved, it felt premature to put a deposit down and commit to the lumber, Peddie said. Doing so would mean needing to find and pay for long-term storage, as well as betting that the cost of lumber was only going to increase.“Where is it going to be stored? Is it going to be more expensive to ship it in?” he said. “We just don’t know right now.”He estimated it would be seven months before he would be ready to order. It’s anyone’s guess what the tariff landscape – and market – would look like by then. More

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      US stocks fall again after rally following Trump’s shock retreat on tariffs

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      US stocks fell again on Thursday after a historic rally following Donald Trump’s shock retreat on Wednesday on the hefty tariffs he had just imposed on dozens of countries.The falls came as the president blamed “transition problems” for the market reaction and the sell-off deepened after a White House clarification noted that total tariffs on China had been raised by 145% since Trump took office.Speaking at the White House, Trump said: “We think we’re in very good shape. We think we’re doing very well. Again there will be a transition cost, transition problems, but in the end it’s going to be a beautiful thing.”The sell-off comes as Democrats continue to react with anger over the sudden retreat that rattled markets, while Republicans praised Trump’s “art of the deal” in action, referencing Trump’s 1987 book.By the end of Thursday, the Dow was down 2.5% after soaring on Wednesday afternoon. The Nasdaq Composite was down more than 4%, after posting its biggest gain in more than two decades on Wednesday, and the S&P 500 down 3.4%.The market seems to be in a state of fatigue after a rollercoaster week. Stocks were even unresponsive to news on Thursday morning that the European Union announced it will suspend 25% retaliatory tariffs against US imports and new data showed inflation in the US cooled to 2.4% in March – both would typically be cause for optimism on Wall Street.On CNN, former US treasury secretary Janet Yellen called Trump’s economic policies the “worst self-inflicted wound” an administration had ever imposed on a “well-functioning economy”.Trump said in an abrupt announcement on Wednesday that he would be implementing a 90-day pause on his tariff plan, and that goods entering the US from most countries would now face a 10% blanket tariff until July, except for Chinese exports, which he said would face tariffs totaling 145% effective immediately – 125% in “reciprocal” tariffs plus 20% already imposed for China’s alleged role in the fentanyl crisis.Republican lawmakers praised the decision to pause the tariffs, with the House speaker, Mike Johnson, stating on social media: “Behold the ‘Art of the Deal.’ President Trump has created leverage, brought MANY countries to the table, and will deliver for American workers, American manufacturers, and America’s future!”Before the pause was announced, a small but growing number of Republican lawmakers and Trump supporters in the business world expressed concerns about the risks of the president’s tariff policy.By Wednesday afternoon, many were praising Trump for the rollback as part of a purported strategy.Bill Ackman, a billionaire hedge fund manager and Trump supporter who advocated for Trump to pause his trade war over the weekend, reacted to the announcement saying that “this was brilliantly executed by @realDonaldTrump. Textbook, Art of the Deal.”The benefit of Trump’s approach, Ackman claimed, “is that we now understand who are our preferred trading partners, and who the problems are. China has shown themselves to be a bad actor. Our counterparties also have a taste of what life is like if they don’t take down their trade barriers. This is the perfect set-up for trade negotiations over the next 90 days.”But some industry leaders criticized the administration’s back-and-forth and tariff decisions.On Thursday, Amazon’s CEO, Andy Jassy, said the company was still waiting to see the impact of the tariffs but warned third-party sellers may “pass that cost on” to consumers.“The effective tariff rate is actually HIGHER with the pause than it was as announced on April 2, due to the tariffs on China,” Diane Swonk, the chief economist of the professional services firm KPMG, wrote on social media. “There will be some diversion through connector countries. However, the effective tariff rate now peaks at 30.5% during the pause. That is worse than our worst case scenarios.”skip past newsletter promotionafter newsletter promotionWhile Republicans and White House officials praised Trump’s decisions, Democratic lawmakers such as Senator Chuck Schumer pushed back. Schumer told his supporters that “this chaos is all a game to Donald Trump”.“He thinks he’s playing Red Light, Green Light with the economy,” Schumer said. “But it is very real for American families.”Some Democrats have made accusations of possible market manipulation.“These constant gyrations in policy provide dangerous opportunities for insider trading,” Senator Adam Schiff said. “Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I’m writing to the White House – the public has a right to know.”The New York representative Alexandria Ocasio-Cortez echoed similar concerns, urging any member of Congress who purchased stocks over the last two days to disclose that.“I’ve been hearing some interesting chatter on the floor,” she said. “Disclosure deadline is May 15th. We’re about to learn a few things. It’s time to ban insider trading in Congress.”The Democratic House whip, Katherine Clark, wrote: “Two hours before announcing his tariff pause, Trump told his paid Truth Social subscribers it was ‘a great time to buy’ on the stock market. Corruption is the name of their game.”The Nevada representative Steven Horsford questioned the US trade representative, Jamieson Greer, asking the representative during a committee hearing whether the climbdown was market manipulation.“How is this not market manipulation?” Horsford asked, to which Greer responded: “No.”“If it was always a plan, how is this not market manipulation?” Horsford asked again.“Tariffs are a tool, they can be used in the appropriate way to protect US jobs and small businesses, but that’s not what this does,” Horsford said. “So if it’s not market manipulation, what is it? Who’s benefiting? What billionaire just got richer?” More

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      Tariffs live: EU pauses counter-tariffs on US goods for 90 days but warns Trump over trade deal

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      Trump declares war on showers to ‘take care of my beautiful hair’The EU has put its retaliatory measures against the US on hold for 90 days but issued a warning to Donald Trump over a trade deal.European Commission President Ursula von der Leyen made the announcement today after the US president announced a 90-day freeze on the hefty tariffs he had imposed on dozens of countries.She said in a social media post: “We want to give negotiations a chance. While finalising the adoption of the EU countermeasures that saw strong support from our member states, we will put them on hold for 90 days.”A relief rally washed over battered global stock markets after Mr Trump’s humiliating U-turn, the FTSE-100 soaring by more than 6 per cent shortly after trading began.However, Mr Trump ratcheted up the pressure on China, immediately hiking the tariff on Chinese imports to 125 per cent from the 104 per cent level that kicked in on Wednesday.Beijing slapped 84 per cent tariffs on US imports in return, and has now hinted at further counter-measures.Meanwhile, the US is considering offers from 15 countries on tariff agreements and is close to deals with some, White House economic adviser Kevin Hassett said. Tariffgate: How trade war blew up in Trump’s faceTariffgate: How Trump’s trade war blew up in his faceThe president’s calls to buy stocks after the market slumped and his subsequent climbdown over tariffs have led to accusations of insider trading. Together with scandalous economic incompetence, this could be his Watergate, writes Simon WaltersJane Dalton10 April 2025 15:40Why US stock markets are down againUS stock markets are down again today, with a mix of reasons likely at play, writes Karl Matchett. First, the wild buying yesterday sent some equities up more than 20 per cent – so some profit-taking would not be unexpected, especially if investors had locked in losses in the previous days’ falls. Secondly, US inflation data is coming in and is surprisingly lower than expected; that, plus a slight restoration in markets, may change calls for cutting interest rates. Higher interest rates are (very broadly and basically) less-good for equities prices, so there’s a balancing act there. And finally, as AJ Bell’s Russ Mould points out, is the actual question of whether share prices should be as high as they were or whether the tariff-induced sell-off just exaggerated something that was on its way anyway.”There is an old market saying that stock market tops are a process, while bottoms are an event. “The S&P 500 had been making heavy weather of it even before Donald Trump’s trade and tariff interventions and had already started to roll over in a classic example of that pattern, so the big issue now is whether Wednesday’s spike is a buy signal or simply a cruel bear trap for unwary bulls who are accustomed to ‘buy the dip’,” he said. Jane Dalton10 April 2025 15:20Starmer urged to accelerate global trade deals Jane Dalton10 April 2025 14:57UK must change with the world, says prime ministerBritain must not just “sit back and hope” but “rise to the moment” in the face of uncertainty over Donald Trump’s tariffs, Sir Keir Starmer has said.The Prime Minister said the UK should “recognise where our future lies”.The 10% “baseline” levy on all goods entering America remains in place.On a visit to Doncaster, Sir Keir said: “I’m not going to stand here and pretend that tariffs are good news. That is not true, and you wouldn’t believe me if I said it, but just as we’ve seen recently on defence and security across Europe, and with Ukraine, they do make one thing very clear, and that is that the world is changing, and we as a country must change with it.”In other words, we’ve got to rise to the moment here, recognise where our future lies, renew Britain and deliver security for working people.”Ministers still hope an economic deal with America can be reached.Chancellor Rachel Reeves will seek to negotiate with the US when she visits Washington at the end of April for the International Monetary Fund’s spring meeting of global finance ministers, she told the Financial Times.She also said a UK-EU summit on May 19 would be a chance “to refresh our relationship and make it easier for businesses to trade”.Prime Minister Sir Keir Starmer in Doncaster (Danny Lawson/PA) More

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      US small business owner says China tariffs endanger her company: ‘I could lose my home’

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      Beth Benike knew the tariffs were coming.The Minnesota veteran invented a placemat with bungee cords that hold toys or utensils, keeping them off the floor when babies toss them. It’s one of several products she created for Busy Baby, a company she runs with her brother. They are manufactured in China.She expected and budgeted for about 20-30% tariffs this year. When the first round of tariffs came in at 10%, it was manageable. Then the rate on China crept up, then up again, to 54%. That was her “oh, shit moment”, but she thought she could weather it, she told the Guardian.It didn’t stop there, though. It climbed up to 104%. She filmed a video of herself “mid-meltdown” over the extreme tariff, posting it on her social media.Busy Baby is one of many US small businesses having to reckon with monumental tariffs that could shutter their livelihoods. Donald Trump’s escalating trade war with China now includes a 125% tariff on Chinese products coming into the US. These businesses were given little more than a week to confront a budget-busting tax on their goods.View image in fullscreen“After today’s announcement, and the impending 104% tariff, I am abandoning my products in China. I am leaving them there because I simply cannot afford to ship them here,” Benike told her followers on Monday, before Trump hiked the tariff on Chinese goods up even further on Wednesday.“At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” Trump wrote on Truth Social Wednesday as he paused tariffs on other countries.Benike already paid about $160,000 to manufacture her products in China, and would have to pay more than that to bring them to the US. So for now, she’s trying to figure out other options: she could try to sell them overseas, or send them to another country to repackage them.“I’m terrified for my business, and I’m terrified for all the other small businesses in the United States right now, because we don’t know what to do, and we’re invested in our businesses. I could lose my home, and I don’t understand it, and I don’t know what to do,” she said in the video.After Trump’s latest increase, Benike said she was looking into sending the paid-for products to Australia, where she has friends, to have them repackaged, then importing them from there during the 90-day pause because it is at least a way to get the products she already paid for to the US.Her business has grown since she founded it in 2017, and accolades have come with it. She was named Minnesota’s small businessperson of the year by the US Small Business Administration this year. She finally got into big retailers – Target and Walmart – with small test runs. Those contracts, though, were signed before the tariffs. Walmart told her it wanted to keep and expand its offerings from Busy Baby, she said, but she had a “hard conversation” with the buyer this week to let them know she cannot add a third product to their roster because of the high tariffs.View image in fullscreen“It has completely stifled my growth in big box retail, which has been our main goal for three years– to grow into that space,” she said. “Because as a teeny, tiny business, that’s a huge achievement, huge for our brand. And now it’s halted.”The other option, the one Trump wants, is a pipe dream: manufacturing her products in the US. Benike would prefer to manufacture here, too. But a mountain of logistics, near impossibilities, stand in her way.Food-grade silicone, which she uses for her products, is not available domestically. When she looked into the cost of importing the material when she first started, it was more expensive than importing a finished product, and the prices have gone up since then. Manufacturing facilities in the US with the compression mold machines she needed require much larger runs than she can commit to. The minimum requirements for factories here was 20,000 – in China, she could do a couple thousand at a time.Making the molds for her products takes about two months. They also are made in China – many American manufacturers send American steel to China to makemolds because they’re better at it there, she said. The molds alone would cost up to $75,000 in the US. If she found a factory and the capital needed to get it all going, it would still take a minimum of four months until she had products ready to sell, she estimated.“It’s financially impossible for me to manufacture here. But even if I had an angel that just dropped a million dollars in my lap, it doesn’t make sense as a business model for how much we would have to charge for the product and charge the consumer,” she said. “It doesn’t make any sense. So I wish I understood the big picture, or how they expect us to pivot in this tiny window of time. I don’t understand, I just don’t understand this.”She said she has about two or three months’ worth of product on hand now, giving her a few months until she could theoretically go out of business if she doesn’t figure something else out. If people buy up what she has left, that at least gives her some cashflow to buy her some time to make new plans.On Tuesday, she got a call from the Small Business Administration, she said. Someone there saw her video, so she’s sending them information on her products and the machines at the factory she uses now. The agency is going to try to find a factory in the US that could make her products, but she’s not holding her breath.View image in fullscreenShe decided to post her video and speak out about the way the tariffs are affecting small businesses because she has a community of supporters and other entrepreneurs who can help and commiserate, including some who know her from her appearance on Shark Tank.Two years ago, during a different tough spot for her business, she had suicidal thoughts. The weight of being a CEO was heavy. She thought, if she was gone, at least her family would have life insurance to live on. She got help then and learned coping strategies.The thought of life insurance surfaced again this week. She caught it quickly, reminding herself that “this is a trick my brain is playing on me right now, because it doesn’t see a way out”. She wants other entrepreneurs to know they aren’t alone as they face these tariffs. She’s heard from some, who have messaged her privately to say they are feeling the same pain, but can’t speak out because it’s a business risk.Some of the comments on her video and on local news websites that have written about her predicament have not been kind. Some have said, you voted for this, or you deserve this if you voted for Trump. She did not vote for Trump, she said, but she does not know why her political beliefs matter.“No one deserves this. No one. Regardless of who they voted for,” she said. “Trump said he was going to do tariffs. We knew that. Yes, we knew tariffs were coming. I would have never in a million years guessed it would be like this.”She has more than 15 patents for the products she’s created for the “accidental business” she came up with after her son was born. She learned how to start a business, develop products, set up an e-commerce store. Now, digging her way out from huge tariffs is one more thing to learn.“We’ve got a great product, and it is a great product for babies. Babies exist all over our world, all over the planet, babies everywhere. I can’t fail,” she said. “This is my children’s livelihood. It’s my home.” More

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      Thursday briefing: Trump puts global tariffs on pause – but hikes them for China

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      Good morning. Two main pieces of news from Donald Trump yesterday: he has rolled back water efficiency standards to “make America’s showers great again”, because he likes “to take a nice shower to take care of my beautiful hair”; and he has rolled back the exorbitant tariffs he applied to many countries last week to 10% – but increased them for China. “No longer will showerheads be weak and worthless,” the White House said. This will come as welcome news for the many investors who have recently been taking a bath.It was a pretty chaotic change, all told: there were contradictory messages from Trump’s advisers on which countries would be affected, why he did it, and what Beijing should expect to happen next. Still, the markets breathed a large sigh of relief, and the S&P 500 had one of the strongest days of its postwar history. This morning, share indices in Asia have jumped in turn.But that still isn’t enough to undo the full damage that Trump’s hot-and-cold tariff policy has inflicted on the American and global economy – and only a fool would presume that a more settled approach is now a given. For the very latest, head to the business live blog; today’s newsletter explains what’s going on, and whether the reversal is a sign of strength or weakness. Here are the headlines.Five big stories

      Gaza | Israeli aircraft struck a residential block in war-ravaged northern Gaza on Wednesday, killing at least 23 people, including eight women and eight children health officials said, as the Israeli military is reportedly preparing to seize the entire city of Rafah.

      Trade | The UK and India have agreed 90% of their free trade agreement, businesses were told on a call with negotiators this week. There are hopes the UK government will succeed in finalising a highly coveted trade deal with India, a booming economy of 1.4 billion people, this year.

      Smartphones | Almost all schools in England have banned mobile phone use by pupils, according to a survey run by Rachel de Souza, the children’s commissioner for England. Among 15,000 schools, 99.8% of primaries and 90% of secondaries have some form of ban.

      Defence | Hot weather is expected to bring highs of 24C to the UK as fire services continue to warn of wildfires across the country. The Met Office said temperatures would peak on Friday in London and south-east England, which could make it the hottest day of the year so far, while temperatures could hit 23C on Thursday.

      BBC | A controversial sculpture outside the BBC’s headquarters has been restored and put back on display behind a screen after being vandalised, with the corporation saying it in no way condoned the “abusive behaviour” of its creator, Eric Gill. There have long been calls for Gill’s works to be removed since his diaries revealed he had sexually abused his two eldest daughters.
      In depth: ‘THIS IS A GREAT TIME TO BUY!!!’View image in fullscreenAt 9.37am Eastern Time, Donald Trump advised his followers with an appetite for speculation: “THIS IS A GREAT TIME TO BUY!!!” Less than four hours later, in what Treasury secretary Scott Bessent magnificently described as “one of the most extraordinary Truth posts of his Presidency,” he announced the rollback of his tariff policy, and the market duly soared. Is it insider trading if your source is the president?Anyway, as the dust settled, traders kept buying. That was claimed as a major victory by Trump: “It’s up almost 2,500 points,” he said. “Nobody’s ever heard of it. It’s got to be a record.” But the reality is that the mood of uncertainty he has created will not easily be dispelled.What does the US tariff regime look like now?With the caveat that this is liable to change at any moment even though everyone in the White House is now asleep, here’s where things now stand: China’s tariff was raised to 125%, which means – given an existing 25% tariff – that some goods are now subject to an additional 150% rate. That is massively up on the 34% Trump announced last week. With a new 84% tariff in response yesterday, Trump again said that Beijing has been “ripping off the USA”. Every other country which saw its tariff raised above the baseline 10% in Trump’s “liberation day” announcement has seen the rate dialled back to that 10%. So no change for the UK; a very significant change for Vietnam (46%), India (26%), the European Union (20%), and the Falkland Islands (41%), whose 3,600 residents can now resume selling Americans frozen fish. Trump initially claimed that this was because more than 75 countries, of 190 affected, had sought to negotiate a deal without retaliating. The higher tariffs are paused for 90 days, and could be reimposed or increased again. There was some confusion over what would happen to Mexico and Canada, whose tariffs were not included in the announcement last week because they had already been set as high as 25% on a large proportion of their exports. Scott Bessent said the 10% rate would apply to them too; the White House later contradicted him and said that their tariffs would remain unchanged.Where does this leave China?In truth, the new announcement doesn’t change much. With tariffs that high, Trump might as well set them to a gazillion per cent and demand every import comes with a free Fabergé egg: the additional rate will make a minimal difference, because hardly anyone will be exporting anything from China to the US. The World Trade Organization forecast yesterday that trade between the two countries could drop by 80%, or $466bn a year.So is the goal to tank the Chinese economy, or to force China to negotiate? That was unclear yesterday. Bessent praised Trump for “goading China into a bad position” so that they “showed themselves to the world to be the bad actor”. That would seem to imply the tank strategy. But Trump himself took a much sunnier line later on: he told reporters that president Xi Jinping “is a smart guy and we’ll end up making a very good deal.”It is certainly plausible that the two sides will eventually arrive at some figure that both can present as a victory domestically. But as Amy Hawkins writes in this piece, that is unlikely to be on the basis of a major Chinese retreat. That is partly because Chinese exports to the US are largely consumer goods, badly exposed to eye-watering price increases, while the goods going the other way are commodities whose expense can be at least somewhat absorbed before they reach the consumer market.What about the UK?In one sense, the UK is exactly where it started: because it was already on the lowest 10% rate, nothing has changed. On the other hand, the fact that 10% is now the same rate as almost everyone else erases the comparative advantage that has been presented as a bright side.Speaking to ITV before the latest announcement, Keir Starmer reiterated that “a trade war is in nobody’s interest” but that retaliatory measures remained on the table. He also acknowledged that it was impossible to know if the 10% will ever be removed. In this piece, Rowena Mason reports that Whitehall sources are “increasingly downbeat” about striking a deal to reduce the tariffs.Why did Trump do it?That depends on who you ask. White House press secretary Karoline Leavitt implied that the change was part of a long-term strategy, saying that reporters had “clearly missed the art of the deal” and “failed to see what President Trump is doing here”. Bessent claimed similarly that this had been Trump’s “strategy all along”. And Trump advisor Stephen Miller claimed it was “the greatest economic master strategy from an American president in history”.But those confident assertions looked a bit shakier when Trump himself emerged to speak to reporters and said that he was acting in a “flexible” way, and that he reacted because “people … were getting a little bit yippy, a little bit afraid”. He also said that “A lot of times it’s not a negotiation until it is”, so make of that what you will. As for what he does next: that will be based on “instinct”, he said.The economist Mohamed El-Erian suggested that Trump was responding above all to a major sell-off in US government debt, a dangerous sign of investor scepticism of the US since its bonds are generally viewed as a safe harbour in an economic storm. The New York Times reports that Bessent and other advisors emphasised the issue in a meeting with Trump yesterday morning. But if you concluded that Trump may just as easily have made a capricious choice based on no serious rationale at all, you wouldn’t sound like an idiot.Where does this leave the markets – and the wider global economic outlook?In the context of the last week, this was a euphoric day for traders. The S&P 500 rose 9.5%, its biggest single-day climb since 2008; 494 of the 500 stocks covered ended higher than they began. One index of the improving mood was Goldman Sachs’ decision to rescind their recession forecast within hours of making it. Overnight, Asian markets have also climbed, and futures – a way to bet on prices ahead of markets opening – were up for European stocks and the FTSE 100.On the other hand, the S&P 500 is still down a significant 11.2% on where it was in February – and 10% universal tariffs are still a really big deal. Bob Elliott, a prominent hedge fund manager, said the market response was “likely far too positive” and noted that when taken alongside the Chinese rate and sector-specific rates elsewhere, the effective overall rate on imports is closer to 20%. That is only down 5% on where it stood before Trump’s announcement, and higher than it has been since the 1930s.The China tariffs alone could lead to a long term reduction in global GDP by nearly 7%, the WTO estimated. And when the dust settles, many companies will still be deeply sceptical that they can count on the kind of stability that tends to promote investment, new hiring, and economic growth.For now, the next questions are whether deals start to be struck, and whether improving share prices are the start of a sustained recovery or merely a “relief rally”. Jake Schurmeier, a portfolio manager at Harbor Capital Advisors, told Bloomberg: “Good news doesn’t eliminate the overarching uncertainty. We [will] likely go higher for a few days, but I think permanent damage has been done.”skip past newsletter promotionafter newsletter promotionWhat else we’ve been readingView image in fullscreen

      Richard Wright (above) once painted 47,000 stars on the ceiling of Amsterdam’s Rijksmuseum. Charlotte Higgins talks to the Turner prize-winning artist about his gorgeous, insanely intricate work – which he describes as “torture”. Alex Needham, acting head of newsletters

      Amazon’s prestige drama about Jesus Christ, The Chosen, claims to have reached 280 million viewers – and it’s just the tip of the holy iceberg. Steve Rose has a great piece about how the Messiah became TV and box office gold. Archie

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      The speed of Trump’s transformation (or degradation) of America has been breathtaking. Osita Nwanevu steps back and surveys the epic scale of the damage: “Humiliation, immiseration, chaos and more of all to come.” Alex
      SportView image in fullscreenFootball | A late goal for Nuno Mendes (above) gave Paris St-Germain a two-goal cushion in their Champions League quarter-final tie against Aston Villa. The 3-1 victory in the first leg came despite Morgan Rogers’ 35th minute opener for the visitors. In the night’s other first leg match, Barcelona beat Dortmund 4-0.Football | Liverpool are increasingly confident Mohamed Salah will sign a contract extension beyond this summer after progress in talks over recent weeks. It is a significant boost with the captain, Virgil van Dijk, also likely to extend his stay beyond June.The boat race | The bad blood between Oxford and Cambridge continues to fester in the buildup to Sunday’s University Boat Race, with fallout from the row over a ban on PGCE students competing leading to the abandonment of the women’s trial race on Wednesday morning.The front pagesView image in fullscreenTrump’s 90-day pause on tariffs dominate the front pages today. The Guardian splashes on “Trump pauses global trade war but hits China with 125% tariffs”, the Times leads with “Trump puts the brakes on tariffs for 90 days” and the Daily Telegraph has “Trump blinks first in trade war”. The FT is going with “Stocks soar as Trump presses tariffs pause button and hits China harder”, the Mail leads with “Trump blinks … but doubles down on China” and the Metro has “Trump risks the great maul of China”. In the Mirror, it’s “Great War of China”.In the Express, it’s “Kemi: PM must make more of our Brexit freedoms.” And the Sun runs with a story about Chelsea footballer Moises Caicedo allegedly driving without a licence, and “Police in swoop on £115m Chelsea ace”.Today in FocusView image in fullscreenRats, rubbish and rising taxes: why Birmingham stinks right nowWhy have the city’s bin collectors gone on strike? Jessica Murray reportsCartoon of the day | Ben JenningsView image in fullscreenThe UpsideA bit of good news to remind you that the world’s not all badView image in fullscreenMetuktire, a village in the Indigenous Capoto-Jarina territory in the Brazilian Amazon , stands as a stronghold against logging and mining in the rainforest. The village has preserved its traditional ways while embracing sustainable energy through solar panels.The community actively resists illegal intrusion by patrolling their territory and educating younger generations on environmental protection. They maintain their customs, such as harvesting cassava, while adopting modern conveniences such as mobile phones and solar panels (pictured above).Chief Beptok Metuktire remains a beacon of resilience fiercely defending the local heritage. “We have had goldminers and outsiders who wanted to occupy our lands,” he says. “We show them that this is our territory.”Bored at work?And finally, the Guardian’s puzzles are here to keep you entertained throughout the day. Until tomorrow.

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