Starmer warns ‘world as we knew it has gone’ as countries mull tariff responses – live updates

PM says he will use policy to shelter British businesses following the stock market turmoil prompted by Trump’s announcement

Starmer orders economic reset amid Trump’s tariff mayhem

Welcome back to our live coverage of the economic fallout from Donald Trump’s announcement of sweeping tariffs last week.

Almost $5tn (£4tn) was wiped off the value of global stock markets after the US president made his shock announcement last Wednesday, which included a 10% base tariff on imports into the US from the UK.

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Jaguar Land Rover pause US shipments to assess impact of Trump’s tariffs

Carmaker says action will allow it to consider how to mitigate cost of 25% tariff on imports

Jaguar Land Rover (JLR) will pause shipments of its UK-made cars to the US for a month as it considers how to mitigate the cost of Donald Trump’s tariffs.

The 25% tariff imposed by the US on imported cars and light trucks took effect on 3 April.

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IMF warns of ‘significant risk’ to global economy from Trump tariffs as markets plunge

Fund boss Kristalina Georgieva says it is important that US and trading partners avoid escalating trade war

The International Monetary Fund (IMF) has warned that Donald Trump’s implementation of swingeing tariffs poses a “significant risk” to the global economy, as stock markets were hit by a punishing worldwide sell-off by investors.

Kristalina Georgieva, the managing director of the IMF, said it was important that the US and its trading partners avoided further escalating Trump’s trade war, while stock markets plunged on Friday as China retaliated against the tariffs.

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UK ministers will respond to US tariffs with ‘calm heads’, Starmer tells business chiefs

Prime minister says tariffs will be ‘a challenge’ but UK is better placed with 10% rate than EU at 20%

Keir Starmer has told heads of business in Downing Street that “clearly there will be an economic impact” from US tariffs but that ministers would respond with “cool and calm heads”.

The prime minister gathered senior business figures in No 10 after Donald Trump announced he would introduce 10% blanket tariffs on imports from the UK, and 25% on car imports.

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Canada Trump tariff exemption ‘like dodging a bullet into the path of a tank’, says business leader

Automotive industry and prime minister Mark Carney note that 25% tariffs on Canadian steel, aluminum and automobiles will still come into effect within hours

Canada’s exemption from Donald Trump’s global tariffs was “like dodging a bullet into the path of a tank”, say business leaders as other levies are poised to hit key industries that drive the country’s economy.

In a theatrical unveiling of tariffs on countries with “unfair” practices on Wednesday afternoon, Canada was noticeably absent, alongside trade ally Mexico.

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Trump hits UK with 10% tariffs as he ignites global trade war

Britain gets off comparatively lightly but US president’s action could still cost billions in lost growth

Donald Trump has hit the UK with tariffs of 10% on exports to the US as he ignited a global trade war that could wipe billions off economic growth.

The US president accused other nations, including allies, of “looting, pillaging, raping and plundering” the US, as he announced tariffs on economic rivals including 20% on the EU and 34% on China as part of what he dubbed “liberation day”.

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Wednesday briefing: What the latest wave of tariffs mean for the US, UK, Europe – and you

In today’s newsletter: The administration’s sweeping tariffs have left markets bracing for volatility – but what impact will they have on an unsteady global economy?

Good morning. According to Donald Trump, it’s “liberation day”: the advent of a new trade order in which Americans reap the benefit of massive tariffs on imports, and the rest of the world picks up the tab.

Unsurprisingly, the United States’ trading partners tend to take a very different view. And they are doing everything they can to avoid being passive targets for the White House’s carnivorous vision of American exceptionalism.

Israel-Gaza war | Israeli Defence Minister Israel Katz announced a major expansion of the military operation in Gaza on Wednesday, saying large areas of the enclave would be seized and added to the security zones of Israel. Follow the latest here.

Israel-Gaza war | Some of the bodies of 15 Palestinian paramedics and rescue workers, killed by Israeli forces and buried in a mass grave in Gaza, were found with their hands or legs tied and had gunshot wounds to the head and chest, according to two eyewitnesses. The accounts add to evidence pointing to a potentially serious war crime on 23 March.

UK news | More than 20 women have contacted police to say they fear they may have been attacked by the serial rapist Zhenhao Zou, with detectives fearing there may be even more victims to come. Zou, 28, was convicted last month of raping three women in London and seven in China between 2019 and 2024.

US politics | Cory Booker, the Democratic US senator from New Jersey, has broken the record for longest speech ever by a lone senator by spending 25 hours and five minutes inveighing against Donald Trump in the chamber. Booker’s speech was intended to highlight the “grave and urgent” danger that Trump poses to democracy.

Cinema | Val Kilmer, the actor best known for his roles in Top Gun, Batman Forever and The Doors, has died at the age of 65. His daughter Mercedes told the New York Times that the cause of death was pneumonia.

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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.

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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.

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End of an era for Canada-US ties, says Carney, as allies worldwide decry Trump’s car tariffs

Canadian PM says Donald Trump has permanently altered relations, as countries around the globe insist import taxes are harmful to all, including Washington

Canada’s prime minister has said the era of deep ties with the US “is over”, as governments from Tokyo to Berlin to Paris sharply criticised Donald Trump’s sweeping tariffs on car imports, with some threatening retaliatory action.

Mark Carney warned Canadians that Trump had permanently altered relations and that, regardless of any future trade deals, there would be “no turning back”.

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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.

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Trump’s expansionism threatens the rules-based order in place since second world war

UN charter says members ‘shall refrain from the threat or use of force’ against a country’s territory or independence

The post-second world war taboo on acquiring territory through force or by the threat of force is being unravelled by a generation of political leaders, led by expansionist threats from Donald Trump that are unprecedented for a US president.

Experts are warning that a combination of the Russian aggression against Ukraine and Trump’s comments explicitly pushing for the US to acquire Greenland, Canada, the Panama canal and Gaza is fuelling a permissive environment that threatens long-recognised borders and the international rules-based order that has existed since the end of the war.

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Government debt costs in richest nations at highest since 2007

Payments by OECD countries outstrip amount spent on defence, police services and housing, report finds

The cost of government debt payments in the world’s richest nations last year reached its highest level since 2007, outstripping the amount spent on defence, police services and housing, a report has found.

Across the 38 members of the Organisation for Economic Co-operation and Development (OECD), debt service costs as a percentage of national income rose to 3.3% in 2024, from 2.4% in 2021.

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‘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.

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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.

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UK drops down list of affluent nations after decade of stagnation, NIESR finds

Districts in Birmingham now ranked below poorest areas of France, Malta and Slovenia as institute urges rethink on planned welfare cuts

The UK has tumbled down the league of affluent nations after almost a decade of welfare cuts and stagnant incomes, according to a report that found the poorest districts in Britain now rank below the lowest-income areas of Malta and Slovenia.

In a warning for ministers to protect welfare spending before Rachel Reeves’s spring statement later this month, the National Institute of Economic and Social Research (NIESR) said the UK’s reputation for high living standards was under threat.

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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.

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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.

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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”.

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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.

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