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      in UK Politics

      Tariffs live: White House insists countries need US markets to survive as ‘phones ringing’ to make trade deals

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      Trump declares war on showers to ‘take care of my beautiful hair’The White House has insisted that trade partners ‘need the United States of America’ as global share markets fluctuate after China increased its tariffs on US imports to 125 per cent.Donald Trump’s press secretary said over 75 countries had approached the US government to negotiate fresh trade deals in the wake of his “Liberation Day” measures.“They’ve made it very clear. They need the United States of America. They need our markets. They need our consumer base,” she told a press briefing after China vowed to ‘fight to the end’ in the trade war.China’s tariff hike, hitting back against Donald Trump’s decision to hike duties on Chinese goods to 145 per cent, will come into effect on Saturday.The US president said America was “doing really well” on its tariff policy on Friday afternoon while Chinese President Xi Jinping made his first public comments on the tariff war, urging the European Union to join China to “oppose unilateral acts of bullying”.Reacting to the news, the US dollar index fell 1.2 per cent to 99.50, marking its lowest level since April 2022.Xi Jinping to visit southeast Asian countries amid escalating US-China trade tensionsChinese president Xi Jinping will make his first official foreign trip of the year from Monday to Friday, visiting Vietnam, Malaysia, and Cambodia amid escalating US-China trade tensions.Beijing said Mr Xi is visiting Vietnam at the invitation of president Luong Cuong, marking his first trip there since December 2023.Mr Xi will visit Malaysia from 15-17 April and then ravel to Cambodia on Thursday next week.( More

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      in US Politics

      Trump was playing chicken with tariffs. Then he chickened out | Steven Greenhouse

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      By imposing punitively high tariffs, Donald Trump was playing a high-stakes game of chicken with the US’s trading partners – but it was Trump who chickened out and suspended his tariffs just hours after they took effect. The president couldn’t ignore the worldwide economic havoc that he had caused singled-handedly – stock markets were plunging, business executives were panicking and consumers were seething.Eager to persuade manufacturers to build new plants in the US, Trump said on Monday that many of his tariffs would be permanent. But for Trump, permanent evidently meant two days.Once again, Trump showed that his second term is one of fiat, flub and flip-flop, of bluster and blunder, of shooting first and aiming later. It’s also a mix of cutting, gutting and cruelty.And foolery. Trump’s tariffs are worse than, as the Wall Street Journal put it, the “dumbest trade war in history”: they are the dumbest economic policy that any US president has ever adopted. His tariffs quickly caused vast and totally unnecessary damage to stock markets, industries and diplomatic relations across the globe. Before Trump unexpectedly suspended the tariffs, US stock markets had lost more than $10tn in value, and stock markets overseas plummeted, too. Millions of retirees had seen their 401(k)s plunge in value, consumers were facing substantially higher prices and many workers were already losing their jobs as Trump’s tariffs sent shockwaves through the global economy.Trump’s embarrassing climbdown on tariffs was one of the rare times he bowed to common sense. If only he would do the same when it comes to his dangerously myopic cuts to scientific research, environmental protection and foreign aid.Trump has not climbed down, however, in his showdown with China. In a fit of pique over China’s retaliatory tariffs, Trump has imposed stratospheric 145% tariffs on China. Attention Walmart shoppers: that is going to more than double the price of many things you buy.When it came to tariffs, Trump made some basic political fumbles. Not only did he go golfing and speak at a million-dollar-a-head fundraiser as this economic disaster unfolded, but he failed to give a coherent explanation for his screw-everyone-else tariffs. Trump and his team pointed to a potpourri of often-conflicting goals: to erase trade deficits, to collect trillions of dollars for the treasury, to bring back manufacturing jobs, to give Trump negotiating leverage to crack down on fentanyl and immigration and reduce other countries’ tariffs.Let’s not delude ourselves. There are two main reasons for Trump’s tariffs: first, to satisfy his never-ending thirst for vengeance against those he feels have wronged him (which seems to mean every country in the world except Russia) and second, to fulfill his desire to wield a club over everyone and everything. By using staggeringly high tariffs as a weapon, Trump has been acting like a mob enforcer, telling every business in town: I’m going to clobber you with my baseball bat unless you do what I want.There’s another reason for Trump’s tariffs: his ignorance about how the world’s economy works. Trump’s “liberation day” speech on tariffs gave the looney, but unmistakable, impression that he believes that Vietnam, for instance, is looting and pillaging the US by selling more sneakers and other goods to the US than the US sells to Vietnam. Trump thinks this even though millions of Americans are delighted to buy well-made sneakers from Vietnam (which would cost consumers far more if they were made in the US).With his grievance-driven, zero-sum worldview, Trump no doubt believes that other countries are unfairly taking advantage of the US whenever we trade with them – and he wants to get even.Trump thinks that trade deficits are evil. If Trump had taken a class with Robert Solow, a Nobel Prize-winning economist at MIT, he might have heard Solow’s wisdom about why there’s no big worry about bilateral trade deficits: “I have a chronic deficit with my barber, who doesn’t buy a darned thing from me.”That Trump got to impose his calamitous tariffs at 12.01am on Wednesday reflects the dismal quality of his cabinet and advisers. Too many are lackeys who automatically cheer whatever he does, while some others, like the treasury secretary, Scott Bessent, no doubt realized that his tariffs were dumb and disastrous, but they’re too cowardly to tell the Tariff King. The tariffs would inevitably increase inflation and probably push the US into recession. Even though Republicans have vowed never to raise taxes, Trump’s tariffs are unarguably a tax, a regressive tax and the largest tax increase in 60 years. Trump’s tariffs were bound to destroy smoothly running supply chains and hurt untold numbers of US companies. They were also a disaster for relations with our allies. They were already triggering massive retaliation.If Trump had some smart, principled advisers, they might explain to him that many obstacles might prevent his tariffs from achieving their goals. With the nation’s low 4% unemployment rate, it will be hard to find workers to do the manufacturing jobs that Trump wants to bring back, especially when he’s rounding up and expelling many immigrant workers. Moreover, US corporations have largely lost the technological knowhow to compete in various industries and that complicates hopes to bring back far more factories.Then there’s another big problem – the chaotic Trump is the worst possible president to persuade companies to build factories in the US to produce goods they now obtain from abroad. King Donald the Capricious does not exactly exude the air of stability that executives insist on before they decide to make big investment decisions, like building new factories.Trump trumpeted his tariffs in part to show strength, but he ended up in an embarrassing retreat (he did maintain a 10% tariff on many countries). Trump is eager to get China to heed his wishes, but China, the world’s leading manufacturing country, can now see that Trump will back down when the heat is too great.China doesn’t have clean hands on trade. It improperly subsidizes many industries to help them outcompete manufacturers in the US and elsewhere. China also has ambitions to vastly increase its manufacturing capacity – a strategy that could kill off important industries in the US, Canada, Europe, Japan and other countries. If Trump were smart and strategic, he – instead of alienating those countries with his tariffs – would have formed an alliance with those countries to pressure China. But now those countries are too angry at the Trump to do that.Trump, never one to admit defeat, insists that his climbdown was a victory, that the mess he made was marvelous strategy. He says many countries are eager to make deals with him. “I’m telling you, these countries are calling us up, kissing my ass,” he said on Wednesday. “They are dying to make a deal.”Our allies are no doubt furious with Trump. Not only were they already angry that he stabbed Ukraine in the back and sidled up to Putin, but they’re unhappy that his tariff foolishness violated numerous international agreements and sought to blow up a smoothly running trade system. And then Trump ridicules them by saying they were rushing to kiss his behind.I hardly ever agree with Elon Musk, but he was right that Trump’s tariffs were the work of morons who were “dumber than a sack of bricks”.

      Steven Greenhouse is a journalist and author focusing on labor and the workplace, as well as economic and legal issues. More

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      in US Politics

      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. More

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      in US Politics

      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

    • 188 Shares64 Views

      in US Politics

      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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      in US Politics

      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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      in UK Politics

      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