Lana Lam
Live digital reporter
It’s passed 13:30 in London and 08:30 in Washington. If you’re just joining us, here’s the latest:
- China has increased their retaliatory tariffs on US imports to 84% after Donald Trump’s 104% levies on Chinese goods kicked in earlier today
- This comes after China’s foreign ministry insisted the country will “fight to the end” against Trump’s tariffs if compelled, and accused the White House of “bullying practices”
- In his first comments since China’s announcement, Trump told businesses now is a “great time” to move to the US
- Meanwhile, the European Union is preparing a range of counter-tariffs, including a 25% tax on US products such as motorbikes, luxury boats and orange juice
- This comes as stocks for European drug makers slipped in the wake of comments from Trump about plans for a “major” tariff on all pharmaceutical imports
- Before steeper tariffs on around 60 nations came into effect today, Trump said many countries were “dying” to negotiate deals. “I’m telling you these countries are calling us up, kissing my ass,” he said
- The Bank of England said Britain is well placed to weather the storm but warns of future risks as the UK government said it’s “confident” it will get a US trade deal
We’ll continue to follow the latest developments so stick with us.
The finance ministry has just made an announcement, increasing the 34% tariff on all US goods coming into China to 84%.
Obviously, that’s a clear blow to every US company wanting to sell into this huge market and – no doubt – it’s going to send more shockwaves through the markets, especially in the US.
There may well be other measures from Beijing so, it appears, there’s no backing down from the Chinese government.
Beijing said there would be resolute counter-measures if Donald Trump made good on his promise to increase the US tariff on Chinese goods to 104% – we’re now seeing the beginnings of that.
Across China, state media reporters on social media have been ridiculing other countries going with the begging bowl to Washington to take the tariffs off, saying it plays right into Trump’s hands.
The contrast that’s being made is that Beijing says it supports multilateral trade efforts where rules apply to everybody.
There would be some sympathy for that, especially in South-East Asian countries like Thailand, Cambodia and Vietnam, which have been hit very hard by US tariffs.
China has added six more US businesses to its “unreliable entity” list, its commerce ministry says.
This includes aerospace and defence company Sierra Nevada Corporation, as well as AI firms.
This comes after the Chinese finance ministry announced 84% tariffs on goods imported from the US, after Donald Trump’s 104% levies on Chinese imports kicked in today.
China previously added PVH – the company that owns designer brands Calvin Klein and Tommy Hilfiger – to the list.
The so-called “unreliable entities list” makes it harder to do business in China, as companies included may face sanctions and fines.
European markets – which were already down – have dropped further after China’s announcement of 84% tariffs on US imports.
The FTSE 100 index of the largest firms listed in the UK has dropped 3.3% so far today, while the German Dax is down 4% and the French Cac 40 is down 4%.
Attention will soon turn to how US markets react to the news, when they open at 14:30 BST. Stick with us for the latest.
The price of Brent crude oil has dropped to below $60 a barrel. This is the lowest price since February 2021, when the Covid-19 pandemic pushed prices down as less people used oil.
Brent crude oil is used as a global benchmark of oil prices. Analyst Ashley Kelly suggested that the White House wants oil prices to go down as this could be an advantage for the US.
How could this affect me? The price of Brent crude oil can impact the cost of many things we use every day, including the price of car fuel and heating your home.
It can also impact the cost of shipping imported goods, as well as the production cost for energy intensive industries.
BBC
