Starmer dismisses claims he’s been ‘played’ by Trump, and says future trade deal could lessen impact of tariffs – UK politics live

Starmer said that a future trade deal with the US might lead to the UK getting some exemptions from the tariffs

Richard Hughes, chair of the Office for Budget Responsibility, is giving evidence to the Treasury committee. There is a live feed here.

Hughes started by telling the committee that he wrote to the chancellor earlier this year to say that, when his five-year term ends later this year, he would like to have a second term in office.

We are of course negotiating an economic deal which will, I hope … mitigate the tariffs.

The US is our closest ally. Our defence, our security, our intelligence are bound up in a way that no two other countries are.

So it’s obviously in our national interest to have a close working relationship with the US, which we’ve had for decades, and I want to ensure we have for decades to come.

We are obviously working with the sectors most impacted at pace on that.

Nobody wants to see a trade war but I have to act in the national interests.

Continue reading...

Large majority of Europeans support retaliatory tariffs against US, poll finds

Survey shows between 56% and 79% across seven countries in favour if Trump introduces ‘Liberation Day’ levies

A large majority of western Europeans support retaliatory tariffs against the US, a survey has suggested, if Donald Trump introduces sweeping import duties for major trading partners as expected this week.

The US president appears likely to unleash a range of tariffs, varying from country to country, on Wednesday, which he has called Liberation Day. He also said last week that a 25% levy on cars shipped to the US would come into force the next day.

Continue reading...

Trump prepares to unveil reciprocal tariffs as markets brace amid trade war fears

President promises he will be ‘very kind’ but critics warn his strategy risks triggering chain reaction and global trade war

As Donald Trump prepared to unveil a swathe of reciprocal tariffs, global markets braced and some Republican senators voiced their opposition to a strategy that critics warn risks a global trade war, provoking retaliation by major trading partners such as China, Canada and the European Union.

The US president said on Monday he would be “very kind” to trading partners when he unveils further tariffs this week, potentially as early as Tuesday night.

Continue reading...

Le boycott: French customers shun McDonald’s, Coca Cola and Tesla to protest against Trump

France has been urged to shun Maga America as #BoycottUSA hashtag spreads, but teenagers say they can’t afford to join the action

On the rainy Grands Boulevards in Paris on Friday, the branches of McDonald’s and KFC were doing brisk business.

There was little sign of “le boycott” – a movement among French customers to reject American brands and products made in the US, in protest at Donald Trump’s trade tariffs and anti-Europe rhetoric.

Continue reading...

Italian PM calls for ‘reasoned’ approach to escalating tariff war between EU and US

Giorgia Meloni says it is her responsibility to defend transatlantic unity in face of looming US levies

Italy’s prime minister, Giorgia Meloni, has called for a “reasoned” approach to an escalating tariff war between the EU and the US and repeated the importance of transatlantic unity.

The US president, Donald Trump, has announced sweeping tariffs on his country’s allies and adversaries, including a 25% levy on car imports starting next week, and a 200% tariff on champagne, wine and other alcoholic drinks from the EU.

Continue reading...

Starmer is warned against ‘appeasing’ Trump with tax cut for US tech firms

Labour MP and Lib Dem leader express concern social media companies could be let off hook just as benefits are cut

Keir Starmer has been warned against “appeasing” Donald Trump as he considers reducing a major tax for US tech companies while cutting disability benefits and public sector jobs.

His chancellor, Rachel Reeves, confirmed on Sunday that there were “ongoing” discussions about the UK’s £1bn-a-year digital services tax that affects companies including Meta and Amazon.

Continue reading...

US-EU trade war could cost Ireland more than €18bn, says report

Report co-authored by Irish government also finds tariffs could cause job losses and relocation of US multinationals

A trade war between the US and the EU could cost Ireland more than €18bn (£15bn), trigger waves of job losses and cause US multinationals to relocate, according to a report co-authored by the Irish government.

Ireland’s GDP could shrink by 3.7% over the next five to seven years under the worst-case scenario, in which Donald Trump imposed 25% tariffs on all exports on the EU and the EU retaliated with counter-tariffs, the study carried by the Economic and Social Research Institute (ESRI) found.

Continue reading...

Carney visits Macron and Starmer as he seeks alliances amid Trump trade war

Canadian PM stresses importance of ‘reliable allies’ in Paris before travelling to London where he was received by king

Canada is the “most European of the non-European countries”, Mark Carney said during his first overseas trip as prime minister to France and the UK, where he is seeking stronger alliances to deal with Donald Trump’s attacks on his country’s sovereignty and economy.

Without mentioning the US president by name, Carney and the French president, Emmanuel Macron, made a joint appearance in Paris to show a united stance against what they said were economic and geopolitical crises – a reference to Trump’s trade war and “America first” diplomacy that has left longtime allies scrambling.

Continue reading...

‘Trump tariffs are reshaping our politics’: Canadians on their election

Voters reflect on their priorities and mood shifts in their communities before a crucial contest

When the Canadian prime minister, Justin Trudeau, resigned in early January, after months of pressure to quit, the approval ratings of the progressive firebrand had dropped from their peak of 65% in September 2016 to 22%.

At the end of last year, the Conservative leader, Pierre Poilievre, described by many as “Trump Lite”, was the clear favourite to win Canada’s next general election, and the top pick of 45% of Canadians for prime minister. At the time, the three biggest issues for voters were all economic: reducing the cost of everyday items, inflation and interest rates, and access to affordable housing.

Continue reading...

Ed Davey calls on Keir Starmer to back Canada against Trump attacks

Lib Dem leader says PM should make public show of support for ally against ‘shocking attacks’ on its sovereignty

The leader of the UK’s Liberal Democrats has called on the prime minister to publicly support Canada and oppose the “shocking attacks” on Canadian sovereignty, as the Trump administration further escalates its global trade war against longstanding allies.

Ed Davey, who leads the third largest political party in the UK, has called on Keir Starmer to travel to Canada in a show of support to the nation’s new prime minister, Mark Carney, as the commonwealth nation faces a generational crisis under Trump’s tariff war and suggestions that the country might become the 51st US state.

Continue reading...

Trump confirms detention of Palestinian activist Mahmoud Khalil: ‘the first arrest of many to come’ – live

Trump says Ice took the Palestinian student protester into custody after his executive order

Secretary of state Marco Rubio has announced that USAid will cancel the majority of its programs, while the rest will be folded into the state department.

Writing on X, Rubio said:

After a 6 week review we are officially cancelling 83% of the programs at USAID.

The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States.

Continue reading...

Risk of ‘Trumpcession’ rising, economists say, as global markets fall

Donald Trump’s brinkmanship and stop-start approach to tariffs rattle investors

The risk that the US economy will enter recession this year is rising, according to economists, as Donald Trump’s chaotic approach to tariffs continued to hit markets.

Shares on Wall Street fell sharply on Monday as investors bet the president’s unpredictable tariff trade war and handling of the economy would hit growth, amid a recent plunge in business and consumer confidence.

Continue reading...

Trump temporarily spares carmakers from US tariffs on Canada and Mexico

After a call with top executives at GM, Ford and Stellantis, president approves one-month exemption from tariffs

Donald Trump has temporarily spared carmakers from sweeping US tariffs on goods from Canada and Mexico, one day after an economic strike on the US’s two biggest trading partners sparked warnings of widespread price increases and disruption.

The US president extended his aggressive trade strategy at midnight on Tuesday by targeting the country’s two closest neighbors with duties of 25%.

Continue reading...

Hong Kong firm to sell stake in Panama ports amid Trump pressure

Deal with US finance giant BlackRock, valued at almost $23bn, comes amid push to curb perceived China influence

CK Hutchison Holdings, the Hong Kong-based logistics giant, announced plans to sell a majority stake in a business that controls ports in Panama to investors including the US financial giant BlackRock in a deal worth almost $23bn.

The sale of a 90% interest in Panama Ports Company, which holds the contract to run the ports of Balboa and Cristóbal until 2047, is part of a wider deal for Hutchinson Port’s global business. The deal comes at a time Donald Trump has piled on pressure to end what he sees as China’s influence and control over the Panama canal.

Continue reading...

China likely to target US agriculture, state media reports, as Trump tariff deadline nears

Global Times signals Beijing’s likely countermeasure after US president threatened a further 10% duty to come into force on Tuesday

China is preparing countermeasures against fresh US import tariffs that are set to take effect on Tuesday, China’s state-backed Global Times reported, with American agricultural exports likely to be targeted.

Donald Trump last week threatened China with an extra 10% duty, resulting in a cumulative 20% tariff, while accusing Beijing of not having done enough to halt the flow of fentanyl into America, something China said was tantamount to “blackmail”.

Continue reading...

Chinese manufacturing surges despite threat of higher Trump tariffs

Fastest expansion in three months as Chinese factories return to growth as new orders rise

China’s manufacturing activity expanded at the fastest pace in three months in February, despite the looming threat that Donald Trump will impose tariffs this week.

Production at China’s factories returned to growth last month, an official survey showed, thanks to higher new orders and purchase volumes.

Continue reading...

Trump says Putin would keep his word on a Ukraine peace deal

President claims presence of US workers in Ukraine would deter Russian aggression after talks with Keir Starmer

Donald Trump has insisted that Vladimir Putin would “keep his word” on a peace deal for Ukraine, arguing that US workers extracting critical minerals in the country would act as a security backstop to deter Russia from invading again.

During highly anticipated talks at the White House with the prime minister, Keir Starmer, the US president said that Putin could be trusted not to breach any agreement, which could aim to return as much of the land as possible to Ukraine that was seized by Russia during the brutal three-year conflict.

Continue reading...

Trump’s threatened 25% tariffs on EU imports could trigger ‘economic turmoil’

US president’s plan could prove to be an economic shock to both blocs, German thinktank says

Donald Trump’s threatened 25% tariffs on EU imports could trigger “economic turmoil”, sharply push down growth and send inflation soaring, according to a German thinktank.

The Kiel Institute said the US president’s promise on Wednesday that he would impose the levies “very soon” was a profound moment in the postwar relationship between Washington and Brussels and could prove to be an economic shock to both parties.

Continue reading...

Ukraine’s economy could grow by 5% next year if hostilities end, EBRD says

European reconstruction bank will help rebuild country if peace is agreed but a lasting end to conflict is needed

The war-torn Ukrainian economy could expand by 5% next year if a ceasefire is agreed, the European Bank for Reconstruction and Development (EBRD) has predicted – but prospects for reconstruction depend on a lasting peace.

The London-based lender has invested $6.2bn (£4.9bn) in projects in Ukraine over the course of the three-year conflict.

Continue reading...

Donald Trump orders new tariff investigation into US copper imports

President opens new front in assault on global trade norms as advisers claim China moving to dominate copper market

Donald Trump on Tuesday opened yet another front in his assault on global trade norms, ordering a new investigation into possible tariffs on copper imports to rebuild US production of a metal critical to electric vehicles, military hardware, semiconductors and a wide range of consumer goods.

Trump, looking to thwart what his advisers see as a move by China to dominate the global copper market, signed an order directing commerce secretary Howard Lutnick to start a new national security investigation under Section 232 of the Trade Expansion Act of 1962, the same law that Trump used in his first term to impose 25% global tariffs on steel and aluminum.

Continue reading...