Another UK government is doing contradictory things when it comes to China

Approach to expanding trade has been castigated for allowing Beijing to invest heavily in vital UK infrastructure

As even Donald Trump was forced to accept in scaling back his latest tariffs, China is just too big to ignore. And so it is, on a much smaller scale, that yet another UK government is doing several contradictory things at once when it comes to Beijing.

This weekend brought a particularly resonant example. On the one hand, the business secretary, Jonathan Reynolds, was hinting that British Steel’s Chinese owner, Jingye, was to blame for neglect – if not worse – over the fate of the threatened blast furnaces at Scunthorpe.

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UK politics: No 10 ‘confident’ on securing supplies to keep Scunthorpe furnaces burning – as it happened

PM’s spokesperson says ships carrying materials needed by the steel plant have docked in Lincolnshire

Also on the morning media round today was shadow business minister Harriett Baldwin, who endured a torrid time on Sky News while being repeatedly pressed to acknowledge any culpability for the British Steel crisis by the previous Conservative administration that sold the company to current Chinese owners Jingye in 2019.

The MP for West Worcestershire was told the appearance was “a wonderful opportunity for you here right now, with our viewers on Sky News, to say, look, it was a mistake. We understand that, and we support the government. Do you want to do that this morning?”

Well, I think that, you know, I know that it was looked at very rigorously at the time. It was welcomed by the unions. And I think we need to recognise that 2025 is very different from 2019. And we need to focus on the future of this critical national infrastructure in this industry in our country.

I think it’s always got to be a last resort. But, you know, there was a period when the government owned it, before Jingye came in, and so I think you should never have anything off the table, but I think that does need to be a last resort.

It was a deal that was welcomed by the unions and local communities at the time. So can we put that in the past and focus on the future of this critical industry.

I think there’s a general consensus. If you hear the chancellor today talking about investment in our infrastructure, she’s always looking for partnerships with private equity capital. She’s looking for your pension and my pension to be investing in some of these infrastructure.

I think there is always going to be a role for private capital in all of these organisations. And I think it means that there’s less competition in terms of financing for the schools, for the hospitals, which do require exclusive public funding.

These situations are different, which is why this interventionist UK government has an industrial strategy that matches solutions to the problems at hand.

I would contrast the speed with which they [the SNP] can take to social media and take to the airwaves to air their grievances and the speed at which they move to secure Scottish jobs.

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Rightwing media falsely blame Ed Miliband for UK steel crisis, experts say

Net zero and clean energy can actually help save the steel industry, experts point out

Ed Miliband and the UK’s net zero target are being falsely blamed for the UK’s steel crisis, experts have said.

On Saturday, parliament passed a law containing emergency powers to gain control of the last remaining maker of mass-produced virgin steel in England, based in Scunthrope, after its Chinese owner, Jingye, declined government support to keep the plant running over the next few weeks.

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UN calls on Trump to exempt poorest countries from ‘reciprocal’ tariffs

Unctad says many countries targeted with high tariff rates are unlikely to be a threat to US

The UN’s trade and development arm, Unctad, is calling on Donald Trump to exempt the world’s poorest and smallest countries from “reciprocal” tariffs, or risk “serious economic harm”.

In a report published on Monday, Unctad identifies 28 nations the US president singled out for a higher tariff rate than the 10% baseline – despite each accounting for less than 0.1% of the US trade deficit.

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Sky-high US-China tariffs are a mutual trade embargo that will hurt both sides

Effects could tip one into recession and undermine other’s fragile economy but prospects for rapprochement are not hopeless

Sky-high tariffs that now hang heavily over US-China trade mean, effectively, that they have declared a trade embargo on each other, normally an act of war. The economic consequences for both will hurt.

The US’s $150bn (£113bn) or so of exports to China will fall away quickly, while China’s $440bn worth of exports to the US may drop by up to 75% over the next 18 months, unless some sort of negotiation happens. No one will be spared the effects.

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‘The sky won’t fall’: China plays down Trump tariff risks as stock markets rally

Chinese customs official says trade has diversified away from US in recent years and plays up its ‘vast domestic market’

China has played down the risk of damage to its exports from Donald Trump’s tariffs, with an official saying the “the sky won’t fall”, as stock markets rose on Monday amid signs of a retreat on electronics restrictions.

The world’s second-largest economy has diversified its trade away from the US in recent years, according to Lyu Daliang, a customs administration spokesperson, in comments reported by state-owned agency Xinhua.

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British Steel to deploy emergency measures to save Scunthorpe furnaces

Firm in race against time to get key materials as business secretary says no guarantee it will get what it needs

British Steel is to deploy emergency measures in a race against time to save the blast furnaces at Scunthorpe, as the business secretary refused to guarantee the plant could get what it needed in time.

The company is understood to be looking at offers of help from more than a dozen businesses to obtain materials such as iron ore and coking coal, potentially allowing it to avoid the temporary shutdown of one of the two furnaces.

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US stock markets expected to recover after Trump drops tariffs on mobiles

Exemption, seen as a climbdown, includes laptops and chips, and is likely to help firms such as Apple and Nvidia

US stock markets were expected to stage a recovery on Monday after Donald Trump excluded imports of smartphones and laptops from his tariff regime late on Friday night.

Shares in Apple and chip maker Nvidia were on course to soar after tariffs on their products imported into the US were lifted for 90 days.

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Ten things we learned from Anthony Albanese’s speech at the Labor party campaign launch

The PM addressed a crowd of 500 people in Perth, spruiking new policies on housing and tax deductions, celebrating WA and invoking Donald Trump. Here’s what you may have missed

Labor’s election campaign launch in Perth was headlined by a $10bn housing pledge, a vow to help first home buyers and a new $1,000 “automatic” tax deduction for all workers.

It also featured a former prime minister, gags about rugby league and more than a few digs at Peter Dutton alongside Labor’s claims that he is copying Donald Trump’s political playbook.

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Election 2025 live updates: Dutton tells Liberal campaign launch ‘Australia will become a nuclear powered nation’ and Coalition will again ‘stop the boats’

The opposition leader is launching the Liberal party’s campaign at an event in south-western Sydney. Follow live

Albanese tells Australian UFC fighter to ‘go hard’ in message of support before headline match

Some Australians will be glued to a brutal fight between two battle-hardened competitors duking it out in a no-holds barred street fight televised today across the land. And it’s sure to get ugly.

I’m in my own title fight at the moment, but I want to wish you all the best for yours. I know you’ll dig deep and make Australians proud. You are one of Australia’s great sporting champions. When you enter the octagon this weekend, Australians will be cheering you on. Go hard.

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Big brands send out barrage of junk food ads before obesity rules bite

Advertising on snacks rises 26% compared with last year, months before restrictions on promoting unhealthy food come into force

Big food brands dramatically increased their spending on advertising last year, months before new junk food regulations aiming to curb Britain’s obesity crisis are due to come into force, the Observer can reveal.

Food companies spent an extra £420m in 2024, an increase of 26% year on year that coincided with a bumper 12 months for sales of snack foods. Shoppers bought an extra 45.4m packs of chocolate, cakes and crisps from the top-selling brands.

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Bill to save British Steel plant becomes law after king’s approval

Emergency legislation giving government power to instruct British Steel to keep plant open passed unopposed

Proposals to save British Steel’s Scunthorpe blast furnaces have been granted royal assent after an extraordinary parliament sitting on Saturday.

Emergency legislation giving the government the power to instruct British Steel to keep the plant open passed the Commons and Lords in a single day unopposed.

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Dealmaking genius or boy who cried wolf? Trump’s trade retreat sows doubts

Nothing is certain under this president – as seen in the inconsistent implementation of tariffs. And it has a longer-term economic cost

Minutes after Donald Trump unveiled a climbdown on tariffs, softening an extraordinary US attack on trade from much of the world, his press secretary scolded reporters at the White House.

“Many of you in the media clearly missed The Art of the Deal,” said Karoline Leavitt, referring to the 1987 bestseller which laid the foundations of the president’s reputation as a consummate dealmaker.

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Did Trump’s tariffs kill economic populism?

Lasting damage has been done not only to Trump’s political credibility but to globalisation as a system

At the beginning of this helter-skelter week, Downing Street was declaring globalisation not only dead but a failure. Now, only five trading days later, the autopsy is still under way but the victim may instead be economic populism, strangled by Wall Street, the citadel of globalisation. Donald Trump’s so-called liberation day may in fact have been the anti-globalist’s entombment day.

In an effort to deny even a tactical retreat, Trump’s aides insist the White House goal all along was not to weaken globalism, or even to protect the US economy with tariffs, but instead to get into a negotiation to lower tariffs around the world and to punish China. As cover stories go, it is hardly credible, partly because the tariffs were repeatedly lauded by Trump as a macroeconomic revenue-raising measure, or a means to bolster US manufacturing.

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Government scrambles to save British Steel as firm faces crisis within crisis

Union leaders have welcomed moves towards public ownership but it is not an auspicious environment for nationalisation

Blast furnaces have been making steel in Britain for 300 years, ever since they helped start the Industrial Revolution. This weekend, parliament will sit for the first Saturday in decades as it tries to keep the last two furnaces running for a bit longer.

Keir Starmer has recalled MPs to discuss emergency powers to direct steel companies, including British Steel’s Scunthorpe steelworks, to “preserve capability and ensure public safety”. The move would be short of nationalisation, but it would give the government more influence on the steel industry than at any point since Margaret Thatcher.

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Labour MPs urge ministers to focus on rebuilding trading relationship with EU

Call to prioritise reset with Europe comes after top adviser to Trump downplays prospect of US tariffs being reduced

Ministers should focus on rebuilding bridges with the EU, Labour politicians have said, after a senior adviser to Donald Trump downplayed the prospect of a breakthrough with the US.

MPs said the government should “prioritise our trading relationship with the EU” and “get a sugar rush of growth” instead of banking on the prospect of preferential treatment from Washington.

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Tesla stops taking orders in China for two models imported from US

Carmaker removes ‘order now’ buttons for Model S saloon and Model X SUV on its Chinese website amid tariffs war

Tesla has stopped taking orders in China for two models it previously imported from the US, as companies scramble to adapt to prohibitive tariffs imposed in Donald Trump’s trade war.

The manufacturer, run by Trump’s close ally Elon Musk, removed “order now” buttons on its Chinese website for its Model S saloon and Model X sports utility vehicle.

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GDP growth an ‘encouraging sign but we are not complacent’, says Reeves – UK politics live

Chancellor says government ‘will remain pragmatic and cool-headed’ while seeking US trade deal

The care minister has defended the government’s cautious response to developments in global trade after the sweeping imposition of tariffs by the US administration in Washington.

Stephen Kinnock said “If we were to just jump in one direction or the other every time there’s a new development, we would be jumping around all over the place. I don’t think that that’s going to be in the interest of our economy or of our national security or of our business community.”

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UK economy far exceeds forecasts to grow 0.5% in boost to Rachel Reeves

February GDP rise was bigger than forecast – but impact from Donald Trump’s tariff war is yet to come

The UK economy unexpectedly expanded by 0.5% in February, figures show, in a boost for the chancellor, Rachel Reeves, before an expected downturn sparked by Donald Trump’s tariff war.

The increase in gross domestic product in February was five times larger than the 0.1% that a poll of City economists had forecast, while January’s figure of a modest fall of 0.1% was revised up to 0.0% growth.

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China raises US tariffs to 125% as Xi invites EU to team up against Trump ‘bullying’

Chinese leader canvasses Spain and other trading partners on how to tackle economic fallout as market turmoil continues

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.

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