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      in UK Politics

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

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      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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      in US Politics

      Trump insists he won’t back down from global trade war as markets slump

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      Donald Trump doubled down on his decision to launch a global trade war, declaring that he would “never” back off from sweeping tariffs on US trading partners.The US president’s announced action sent shock waves around the world this week, prompting fierce threats of retaliation and sharp sell-offs in stock markets.In an all-caps message on his Truth Social social media platform, Trump sought to convey his defiance in the wake of news that Beijing is preparing to hit back with 34% tariffs of its own.“TO THE MANY INVESTORS COMING INTO THE UNITED STATES AND INVESTING MASSIVE AMOUNTS OF MONEY, MY POLICIES WILL NEVER CHANGE,” he claimed. “THIS IS A GREAT TIME TO GET RICH, RICHER THAN EVER BEFORE!!!”Within hours, however, the president was indicating that he might be prepared to change course. “Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.,” Trump wrote on Truth Social, adding that he looked forward to a meeting “in the near future”.The comments came as markets tumbled for the second straight day after Trump’s move to bring in tariffs on scores of countries. He claims the policy – a blanket 10% tariff from Saturday, with higher rates for specific markets from next week – will bring US manufacturing jobs back to the US and raise trillions of dollars for the federal government. Many economists have cautioned it will trigger economic chaos, and likely raise prices.The International Monetary Fund (IMF) has warned that the move may well knock the global economy. Kristalina Georgieva, its managing director, , said: “We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth.”Shortly before Wall Street opened on Friday, Trump claimed China had “panicked” by announcing new retaliatory tariffs on US imports. “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!” he wrote on Truth Social.China’s industry associations have unanimously condemned the tariffs. The country’s National Textile and Apparel Council said it “supported the government’s forceful measures” and that the US had “damaged the resilience of the global textile industry’s supply chain”.The S&P 500 fell 4.4% in early trading, exacerbating a decline that began in February. The index, which tracks 500 of the leading US companies, is now down almost 14% from its peak.Shares in the US bank sector had fallen nearly 6% on Friday, reflecting fears that the trade war could trigger a recession. It could also be an indicator that investors are expecting faster interest rate cuts by the US Federal Reserve, in order to instigate growth.Crude oil prices also plunged by 8% on Friday, heading for their lowest point since the middle of the pandemic in 2021.Trump personally selected the controversial formula for determining what tariffs would be imposed on specific countries from a menu of options, according to the Washington Post.skip past newsletter promotionafter newsletter promotionThe chosen formula was based on two simple variables: the trade deficit with each country and the total value of its US exports.Several Trump aides had apparently been working on crafting country-specific tariffs for weeks, taking into account a broad range of tariff & non-tariff barriers. Sources told the Post that more sophisticated approaches had been developed.Trump reportedly didn’t decide on the final plan until around 1pm Wednesday – less than three hours ahead of his Rose Garden address announcing the tariffs. It is unclear who authored the formula Trump ultimately picked.The US secretary of state, Marco Rubio, told reporters that the markets “will adjust” to the sweeping tariffs imposed by Trump. “The markets are reacting to a dramatic change in the global order in terms of trade … As long as they know what the rules are going to be moving forward … the markets will adjust.”Many Democrats have expressed frustration with the early impacts of the tariffs on the US economy. JB Pritzker, the governor of Illinois, wrote on X: “The biggest tax hike in American history. Donald Trump’s tariffs are throwing the economy into the tank.”California senator Alex Padilla wrote: “I’m not enraged by the stock market crashing because I’m sympathetic towards traders on Wall Street. I’m mad because this hurts the pensions and retirement savings of so many Americans. And Trump couldn’t care less.” More

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      in US Politics

      The Guardian view on Donald Trump’s tariff ultimatum: tribute for access to America’s empire | Editorial

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      When Donald Trump stood before union auto workers in the Rose Garden he declared “Liberation Day”, promising to stand up for Main Street. Whether that pledge will be fulfilled is moot. He will declare victory either way. What the US president offered was not just an economic programme, but an imperial one.Mr Trump’s logic, if it exists, lies in the 397-page report on “foreign trade barriers” he brandished on Wednesday. Its message is brutally simple: you may sell your goods to Walmart shoppers, but only if you let US cloud services hoover up your data, US media flood your screens and US tech monopolies operate on their terms – not yours. TikTok is the test case for Trump’s platform nationalism: only US firms may mine data, reap profits and rule the digital empire.A one-week ultimatum and a fabricated national emergency lay bare the theatrics driving Mr Trump’s agenda. The US president’s proposed tariffs and economic nationalism are not about correcting trade imbalances; they are about coercing others into accepting American economic dominance – without requiring the US to sacrifice its domestic advantage.The US continues to run goods deficits not because it “borrows” from abroad, but because the rest of the world willingly exchanges real goods for dollars it cannot issue. Mr Trump demands tribute for that privilege: control over digital infrastructure, forced access for hi-tech rentiers and suppression of rival technologies. The realpolitik is that you can sell to American consumers – but only if you buy into American rules, platforms and financial dependencies. Though Mr Trump’s foreign policy is transactional, its domestic effect will probably be transformative – and not in a good way. Tariffs raise prices for everyone, especially the poor, while shielding local producers from competition. Meanwhile, as Mr Trump made clear, the revenues are earmarked not for public investment or industrial policy, but for tax cuts that benefit the wealthy. In this regime, tariffs redistribute upward: the poor pay more, so billionaires pay less.This is not so much anti-globalist as post-globalist. It seeks not withdrawal from the world, but a world that submits to new terms. The US empire still earns – but now demands more and spends less. Foreign aid is slashed and multilateral rules are replaced by bilateral bargains struck at speed. If allies want to trade, they must also license Google Cloud services, buy Boeing jets and resist Chinese influence. Trade, technology and security are bundled into a single, rent-seeking foreign policy.Markets, however, are less convinced – and their continued crashing reflects not just recession fears, but a dawning recognition that this model is not a one-quarter adjustment. It is a paradigm shift. The pain, even Mr Trump concedes, may be real. But for him, pain is purgative. It disciplines labour, justifies austerity and remakes the economy in the image of the deal.China’s retaliatory tariffs raise the prospect of a dangerous trade war. But Beijing is signalling that if it can’t win in the US-led system, it will build its own. For other major economies, including the UK, the task is not to replicate American leverage, but to reduce dependence on it – by deepening regional integration, investing in technological autonomy and limiting exposure to US-controlled chokepoints in finance, tech and defence. Resistance may provoke retaliation, but submission ensures subordination. In the long run, strategic cooperation – not bilateral concession – is the only durable answer to tariff imperialism. More

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      in UK Politics

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

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      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

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      in US Politics

      Are Trump’s tariffs for real or an AI hallucination? I’m afraid the answer is both | Marina Hyde

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      There’s a scene in the very first episode of Yellowstone where the casino-owning Native American chief explains the basic financial logic of all casinos to an uncomfortable politician: “The gamblers’ money is like a river – flowing one way. Our way.” Oh no, hang on, wait … Not all casinos. In fact, it could be that when all is said and done, the historians looking for that one key fact to illustrate the eventual legacy of Donald Trump will not go with his two stunning presidential election wins. Instead, they’ll point out that in the 90s, he literally managed to bankrupt casinos. To repeat: this is a man who somehow contrived to bankrupt multiple casinos. Is he the guy to reshape the entire global economic order of the past century? Let’s find out! Either way, only 45 months of his presidency left to go.Anyway: tariffs. Rather than using actual tariff data, the United States of America this week appeared to have genuinely used a basic ChatGPT-style model to calculate the tariffs it would immediately impose on friends/foes/arctic wildlife. This was called either “liberation day”, or the “declaration of economic independence” (sadly not abbreviated – yet – to DEI).It was hosted in the White House Rose Garden by ancient gameshow MC Donald Trump, who was accidentally wearing his indoors makeup outdoors. Like many, I’ve tried to mentally detach from the fact that we live in a time when the US defence secretary has a neck tattoo or whatever, but it makes me feel at least partially alive that the presidential paint job still occasionally retains the power to horrify. Trump leered his way through his tariff presentation while appearing to have been made up by the technique that provided the climax to Joe Wilkinson’s RNLI speech on Last One Laughing (If you saw it, you know). It’s not so much foundation any more as cosmetic bukkake.Forgive me, back to the economics. We know that Trump has always been obsessed with starkly simple numbers. Network TV ratings. The overall trade balance in goods (not services). And – before this week – the stock market. But now, like Bruno, we don’t talk about the stock market, no no no … Certainly not since it dropped 1,679 points in one day alone (the day after Trump announced the tariffs). Although please enjoy the pure hilarious happenstance of scheduling which meant that that day’s opening bell to signal the start of trading on Wall Street had been rung by the staff of wingnut media outlet Newsmax and Rudy Giuliani. Ding, dong – now just watch those stocks crap the bed. Seriously, Rudy – everything you touch! Then again we do have to remember that it was Trump himself who last year declared that “stock markets are crashing, jobs numbers are terrible, we are heading to World War III and we have two of the most incompetent ‘leaders’ in history. This is not good!!!”Is he still marking presidencies on the same metrics? Alas, reporters are going to need to shout that inquiry over the fairways, as Trump has now repaired to one of his Floridian golf courses to host the first domestic event of 2025 on the Saudi-owned LIV Golf tour. It’s called class: look it up. And no doubt it’ll be fun discussing falling oil prices with whoever is over from Riyadh for the event.Trump did offer one last comment on the tariffs before donning his big-boy golf pants. “The operation is over,” he said. “The patient lived, and is healing. The prognosis is that the patient will be far stronger, bigger, better and more resilient than ever before.” A speech I am positive I have heard delivered word-for-word on The Simpsons by ultra-shady physician Dr Nick. Meanwhile, in the back of shot, a Frankenfigure with a fish’s head grafted to a man’s body sits bolt upright, convulses wildly and dies within three foot of the operating table. Listen, you can’t save ‘em all.Incidentally, Trump is not the only one reaching for medical metaphors. Take the chief economist at UBS Global Wealth Management, who this morning observed mildly: “We often hear that when the US sneezes the global economy catches cold. This is not the US sneezing. This is the US cutting off its own arm. The self-inflicted economic cost naturally weakens the dollar.” Mm. One indication that an economic plan is going badly is that there’s no one responding to the above by going “ooh, but is cutting off your arm even a bad thing?”. Different circumstances, of course, but there was a similar mood in the air in the UK after Liz Truss’s “mini-budget”.Speaking of Blighty, Keir Starmer seems to have continued his policy of not poking the bear, and indeed to pretend to really enjoy it when the bear pokes you really hard somewhere really painful. According to Trump, Starmer is “very happy” about the 10% tariff kick he just took up the UK’s backside.Still, perhaps there are already signs of slight directional pivots in the West Wing. Having watched global markets tumble while the White House absolutely insisted that the tariffs were not lazy ChatGPT-assisted gambits to provoke immediate trade negotiations, it wasn’t too long before Trump’s son Eric was venturing on to X with a take. “I wouldn’t want to be the last country that tries to negotiate a trade deal with @realDonaldTrump,” gibbered Trump minor. “The first to negotiate will win – the last will absolutely lose,” he continued. “I have seen this movie my entire life …” Weird, because I don’t remember this particular scene in the aforementioned Trump casino movie – or indeed several epic flops in the franchise.Yet this was also a week where we were reminded that life is not just about the adult sons with whom we are saddled, but the adult sons we choose. Fire up the elegy muzak, then, for there is sadness in the air. Reports – hotly denied, which means nothing – suggest that Elon Musk will fairly soon be leaving his post at the “department of government efficiency” and returning to the private sector. Yeah, let that sink out. And then try to picture his Doge leaving party. “Sorry boys, tariffs mean we can only afford US beer. And, unfortunately, we eliminated spending on paper cups. On the plus side, the president’s makeup artist is just going to spray Bud Light in the general directions of your mouths, and she has a 30% accurate aim. Open wide, victors!”All of which would seem to conclude this week’s look at Trump’s river, which a) is a river of effluent and b) only flows one way. Our way. What can I tell you? Buy shares in paddles today.

      Marina Hyde is a Guardian columnist More

    • 200 Shares199 Views

      in US Politics

      Trump news at a glance: Tariffs send US markets tumbling to worst day since Covid crash

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      Global financial markets were roiled by Donald Trump’s latest tariff announcement – with trillions of dollars knocked off the value of the world’s biggest companies and heightened fears of a US recession.In the US, the main indices saw their worst one-day falls in five years as the president claimed that “the markets are going to boom” in response to his sweeping tariffs.The scale of the sell-off highlights just how alarmed investors are by the tariffs, and the fears they could lead to a recession.Here are the key stories at a glance:Trump insists ‘it’s going very well’ as markets crashDespite the worst markets crash in nearly five years, Trump denied the turmoil presented a problem, telling reporters: “I think it’s going very well … We’ve never seen anything like it. The markets are going to boom. The stock is going to boom. The country is going to boom.”As world leaders reacted to the US president’s “liberation day” tariff policies demolishing the international trading order, about $2.5tn (£1.9tn) was wiped off Wall Street and share prices in other financial centres across the globe.Read the full storyUS markets see worst day since 2020Zooming in on US stock market, all three major US funds closed down in their worst day since June 2020, during the Covid pandemic. The tech-heavy Nasdaq fell 6%, while the S&P 500 and the Dow dropped 4.8% and 3.9%, respectively. Apple and Nvidia, two of the US’s largest companies by market value, had lost a combined $470bn in value by midday.Read the full storyRepublican Senate rebels decry tariffs as ‘bad policy’The first signs of an internal US political backlash against Donald Trump’s declaration of a global trade war are starting to emerge amid tanking stock markets worldwide, including on Wall Street, and widespread international criticism of the move.Read the full storyPete Hegseth faces Signal investigationThe Pentagon watchdog is launching an investigation into US defence secretary Pete Hegseth’s use of the encrypted messaging app Signal to discuss sensitive information about military operations in Yemen.The probe follows a bipartisan request from the Senate armed services committee after allegations emerged that highly precise – and most likely classified – intelligence about impending US airstrikes in Yemen, including strike timing and aircraft models, had been shared in a Signal group chat that included a journalist.Read the full storyTrump fires staffers after Laura Loomer urges him toDonald Trump fired six national security council staffers after an unusual meeting in the Oval Office where the far-right activist Laura Loomer presented opposition research against a number of staffers that she said showed they were disloyal to the US president, according to two people familiar with the matter.Read the full storyDr Oz confirmed for Medicare and Medicaid role amid cuts plansFormer heart surgeon and TV pitchman Dr Mehmet Oz was confirmed to lead the Centers for Medicare and Medicaid Services. Oz became the agency’s administrator in a party-line 53-45 vote.The 64-year-old will manage health insurance programs for roughly half the country, with oversight of Medicare, Medicaid and Affordable Care Act coverage. He steps into the new role as Congress is debating cuts to the Medicaid program, which provides coverage to millions of poor and disabled Americans.Read the full storyEnglish judge orders Trump to pay more than $800,000 in legal costsDonald Trump has been ordered by a judge in England to pay more than £620,000 ($820,000) in legal costs after unsuccessfully suing a company over denied allegations he took part in “perverted” sex acts.The US president brought a data protection claim against Orbis Business Intelligence, a consultancy founded by a former MI6 officer, Christopher Steele, in 2022.Steele authored a report that included allegations – all denied by Trump – that he had been “compromised” by the Russian Security Service. Mrs Justice Steyn threw out the claim in February last year and told Trump to pay an initial £290,000 in costs. Trump decided not to pay and was now ordered to pay £626,058.98.Read the full storySenators try to claw back power over tariffs Senior senators introduced new bipartisan legislation on Thursday seeking to claw back some of Congress’s power over tariffs after Donald Trump unveiled sweeping new import taxes that rattled the global economy.Read the full storyWhat else happened today:

      Canada will retaliate against Trump’s “unjustified, unwarranted” tariffs with a 25% tax on US vehicles, said prime minister Mark Carney. The taxes will target vehicles that are not compliant with the continental free trade deal.

      The method used to calculate the most important numbers in international trade, politics and economics has left some of the world’s leading experts shocked. Here’s how they were calculated.

      JD Vance said that Elon Musk would remain a “friend and an adviser” to the vice-president and Donald Trump after he leaves his current role with the so-called “department of government efficiency”.
      Catching up? Here’s what happened on 2 April 2025. More

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      in US Politics

      Global markets in turmoil as Trump tariffs wipe $2.5tn off Wall Street

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      Global financial markets have been plunged into turmoil as Donald Trump’s escalating trade war knocked trillions of dollars off the value of the world’s biggest companies and heightened fears of a US recession.As world leaders reacted to the US president’s “liberation day” tariff policies demolishing the international trading order, about $2.5tn (£1.9tn) was wiped off Wall Street and share prices in other financial centres across the globe.Experts said Trump’s sweeping border taxes of between 10% and 50% on the US’s traditional allies and enemies alike had dramatically added to the risk of a steep global downturn and a recession in the world’s biggest economy.World leaders from Brussels to Beijing rounded on Trump. China condemned “unilateral bullying” practices and the EU said it was drawing up countermeasures.While Trump timed his Wednesday evening Rose Garden address to avoid live tickers of crashing stock markets, that fate arrived when Asian exchanges opened hours later.Drawing comparisons with the market crashes at the height of the coronavirus pandemic and the 2008 financial collapse, the sell-off swept the globe, sending exchanges plunging in Asia and Europe. The UK’s FTSE 100 index of blue-chip companies closed the day down 133 points, or 1.5%, to 8,474 after suffering its worst day since August.All three main US stock markets were down at the end of trading in their worst day since June 2020, during the Covid pandemic. The tech-heavy Nasdaq fell 5.97%, while the S&P 500 and the Dow dropped 4.8% and 3.9%, respectively. Apple and Nvidia, two of the US’s largest companies by market value, lost a combined $470bn in value by midday.Libby Cantrill, the head of US public policy at Pimco, one of the world’s largest bond fund managers, said investors were growing increasingly concerned as Trump appeared to be unwilling to soften his stance in the face of market turmoil, although hope remained that he would ultimately strike deals with US trading partners.“There is likely a limit to how much pain he and his administration are willing to endure in order to rebalance the economy, but when that is or what that looks like remains to be seen,” she said.“For now, we should assume that his pain tolerance is pretty high and that tariffs stick around for a while.”The US dollar hit a six-month low, falling 2.2% on Thursday morning, amid a growing loss of confidence in a currency previously considered the safest in the world for most of the past century.Warning clients to beware a “dollar confidence crisis”, George Saravelos, the head of foreign exchange research at Deutsche Bank, said: “The safe-haven properties of the dollar are being eroded.”The heaviest falls in share prices on Thursday were reserved for US companies with complex international supply chains stretching into the countries that Trump is targeting with billions of dollars in fresh border taxes.Apple, which makes most of its iPhones, tablets and other devices for the US market in China, was down 9.5% at close of trading, and there were steep declines for other large multinationals including Microsoft, Nvidia, Dell and HP.Commodities fell sharply, including a 7% plunge in oil prices, reflecting growing concerns over the global economic outlook.Speaking to reporters on Thursday, Trump said: “I think it’s going very well. It was an operation like when a patient gets operated on and it’s a big thing. I said this would be exactly the way it is … We’ve never seen anything like it. The markets are going to boom. The stock is going to boom. The country is going to boom.”Trump later said: “Every country is calling us. That’s the beauty of what we do. If we would have asked these countries to do us a favour they would have said no. Now they will do anything for us.”skip past newsletter promotionafter newsletter promotionOver the last nearly 24 hours, Trump has faced widespread backlash from US lawmakers and global leaders over his tariffs plan, with the senior Republican senator Mitch McConnell calling it “bad policy” while Canada – a traditional American ally – called the tariffs “unjustified” and “unwanted”.Tariffs will fall heavily on some of the world’s poorest countries, with nations in south-east Asia, including Myanmar, among the most affected.Cambodia, where about one in five of the population live below the poverty line, was the worst-hit country in the region with a tariff rate of 49%. Vietnam faces 46% tariffs and Myanmar, reeling from a devastating earthquake and years of civil war after a 2021 military coup, was hit with 44%.Analysts warned that garment and sports shoe makers, which rely heavily on production in south-east Asia, face rising costs, which will push up prices for consumers around the globe. The share prices of Nike, Adidas and Puma all fell steeply.Analysts said Trump’s measures would raise the average tariff, or border tax, charged by the US to the highest level since 1933, in a development that threatened to sink the US into recession while increasing living costs for consumers.Trump’s plans involve imposing a 10% tariff on all US trading partners from just after midnight on 5 April, before additional higher tariffs of up to 50% are imposed on countries including China, Vietnam and the EU.The non-partisan Tax Foundation thinktank said it estimated the plan would represent a “$1.8tn tax hike” for US consumers, which would cause imports to fall by more than a quarter, or $900bn, in 2025.While the measures will hit the US hard, researchers at the consultancy Oxford Economics said they could sink global economic growth to the lowest annual rate since the 2008 financial crisis, barring the height of the Covid pandemic.Countries scrambled to assess the fallout and whether to retaliate. The UK, which was hit with the lowest level of 10% tariffs, suggested it may retaliate even as it tries to strike a deal with Washington.It published a 417-page list of US products on which it could impose tariffs, including meat, fish and dairy products, whiskey and rum, clothing, motorcycles and musical instruments.The business secretary, Jonathan Reynolds, told MPs that ministers were still pursuing an economic deal with the US as the priority but “we do reserve the right to take any action we deem necessary if a deal is not secured”.The French president, Emmanuel Macron, said Trump’s decision to impose tariffs of 20% on EU goods was “brutal and unfounded”, while Germany’s outgoing chancellor, Olaf Scholz, called it “fundamentally wrong”.Spain’s prime minister, Pedro Sánchez, said the “protectionist” tariffs ran “contrary to the interests of millions of citizens on this side of the Atlantic and in the US”.The EU is thought to be preparing retaliatory tariffs on US consumer and industrial goods – likely to include emblematic products such as orange juice, blue jeans and Harley-Davidson motorbikes – to be announced in mid-April, in response to steel and aluminium tariffs previously announced by Trump. More