Thursday briefing: Trump puts global tariffs on pause – but hikes them for China

In today’s newsletter: White House officials send mixed messages over Trump’s stunning U-turn

Good morning. Two main pieces of news from Donald Trump yesterday: he has rolled back water efficiency standards to “make America’s showers great again”, because he likes “to take a nice shower to take care of my beautiful hair”; and he has rolled back the exorbitant tariffs he applied to many countries last week to 10% – but increased them for China. “No longer will showerheads be weak and worthless,” the White House said. This will come as welcome news for the many investors who have recently been taking a bath.

It was a pretty chaotic change, all told: there were contradictory messages from Trump’s advisers on which countries would be affected, why he did it, and what Beijing should expect to happen next. Still, the markets breathed a large sigh of relief, and the S&P 500 had one of the strongest days of its postwar history. This morning, share indices in Asia have jumped in turn.

Gaza | Israeli aircraft struck a residential block in war-ravaged northern Gaza on Wednesday, killing at least 23 people, including eight women and eight children health officials said, as the Israeli military is reportedly preparing to seize the entire city of Rafah.

Trade | The UK and India have agreed 90% of their free trade agreement, businesses were told on a call with negotiators this week. There are hopes the UK government will succeed in finalising a highly coveted trade deal with India, a booming economy of 1.4 billion people, this year.

Smartphones | Almost all schools in England have banned mobile phone use by pupils, according to a survey run by Rachel de Souza, the children’s commissioner for England. Among 15,000 schools, 99.8% of primaries and 90% of secondaries have some form of ban.

Defence | Hot weather is expected to bring highs of 24C to the UK as fire services continue to warn of wildfires across the country. The Met Office said temperatures would peak on Friday in London and south-east England, which could make it the hottest day of the year so far, while temperatures could hit 23C on Thursday.

BBC | A controversial sculpture outside the BBC’s headquarters has been restored and put back on display behind a screen after being vandalised, with the corporation saying it in no way condoned the “abusive behaviour” of its creator, Eric Gill. There have long been calls for Gill’s works to be removed since his diaries revealed he had sexually abused his two eldest daughters.

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Gordon Brown calls for ‘economic coalition of the willing’ to tackle Trump tariffs

Former PM says it is also the moment for the UK to go even further in renewing ties with the EU

Gordon Brown has called for an “economic coalition of the willing” to respond to Donald Trump’s tariffs with coordinated economic policies, including a reduction of interest rates.

The former prime minister also said it was a moment for the UK to go even further in renewing ties with the EU, suggesting it should mean “collaboration that is even more extensive than removing post-Brexit trade barriers”.

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Trump orders DoJ to investigate two former officials who defied him

Miles Taylor and Chris Krebs, who served under Trump, targeted as president’s persecution of critics intensifies

Donald Trump’s persecution of critics intensified on Wednesday when he ordered the justice department to investigate a whistleblower and a cybersecurity director who refuted unfounded claims of election fraud.

The US president signed memorandums targeting Miles Taylor and Chris Krebs, former homeland security officials who served in the first Trump administration.

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Trump signs executive order on water pressure to ‘restore shower freedom’

White House says order will ‘make America’s showers great again’ and ‘end the Obama-Biden war on water pressure’

A global trade-war rollercoaster was not enough to distract Donald Trump from fulfilling one of his longtime priorities on Wednesday: changing the federal definition of “shower head”, a move the White House said would “end the Obama-Biden war on water pressure”.

Trump has complained for years about inadequate water pressure in American showers, sinks and toilets, and has blamed federal water-conservation standards for the problem.

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Conservative CDU/CSU and SPD form coalition government in Germany

Two of the country’s biggest parties freeze out rightwing AfD and prepare for impact of Trump’s new tariffs

Germany’s biggest mainstream parties have sealed an agreement to form a government keeping the far right out of power, as Europe’s top economy struggles to reverse a downturn and gird itself for the potentially catastrophic impact of new US tariffs.

The prospective chancellor Friedrich Merz’s conservative CDU/CSU announced the breakthrough deal with the centre-left Social Democrats (SPD), which had led the ruling coalition since 2021.

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EU to impose retaliatory 25% tariffs on US goods from almonds to yachts

Bloc says it ‘considers US tariffs unjustified and damaging, causing economic harm to both sides’

The EU has agreed to impose retaliatory tariffs on €21bn (£18bn) of US goods, targeting farm produce and products from Republican states, in Europe’s first act of retaliation against Donald Trump’s tariffs.

The EU plans to introduce 25% tariffs on scores of goods from almonds to yachts, with the first duties being collected from 15 April, while the bulk apply from 15 May and the remainder from 1 December.

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Trump brags world leaders are ‘kissing my ass’ as tariff chaos rocks markets

President boasts at National Republican Congressional Committee dinner: ‘I know what I’m doing’

Donald Trump has insisted “I know what the hell I’m doing” by imposing sweeping tariffs and bragged that world leaders are “kissing my ass” as they try to negotiate trade deals.

The US president was speaking to political donors at the National Republican Congressional Committee’s annual fundraising dinner in Washington on Tuesday night.

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US air force reverses ban on pronouns in email signatures and websites

Department will follow rest of Trump’s anti-DEI order while adhering to 2024 defense bill barring any pronoun policy

The US air force has reversed its ban on the use of preferred pronouns in email signatures and other professional communications.

In a memo dated last Wednesday, the Department of the Air Force announced that it has “rescinded” the directive it issued earlier this year prohibiting “the use of ‘preferred pronouns’ to identify one’s gender identity in professional communications”, including email signatures, memoranda, letters, papers, social media and official websites.

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Asian markets fall as Trump’s sweeping global tariffs, including 104% against China, due to take effect – business live

Stock markets down from Australia to Japan and Taiwan as Trump presses ahead with plans to hit China with huge retaliatory tariffs

Today’s tariffs follow Trump’s 10% tariff on all imports from many countries, including Australia, which came into effect at the weekend.

US customs agents began collecting the unilateral tariff at US seaports, airports and customs warehouses on Saturday. Today’s measures are higher levies on goods from 57 larger trading partners.

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White House freezes funds for Cornell and Northwestern in latest crackdown

Pauses come after Trump officials sent warning letters to 60 US universities for ‘failure to protect Jewish students’

In early March, the Trump administration sent warning letters to 60 US universities it said were facing “potential enforcement actions” for what it described as “failure to protect Jewish students on campus” in the wake of widespread pro-Palestinian protests on campuses last year.

The president of Cornell University, which was on the list, responded with a defiant op-ed in the New York Times, arguing that universities, and their students, could weather debates and protests over the war in Gaza.

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Trump flags ‘major tariff on pharmaceuticals’ as trade chief says US ‘running up score’ on Australia

US president says he will shortly announce the new tariff on pharmaceuticals but does not give any details

Donald Trump says the US will soon introduce “a major tariff on pharmaceuticals” designed to force more manufacturing giants to relocate to America, a move that could further strain relations with Australia.

His comments come hours after his trade representative, Jamieson Greer, said the US should be “running up the score” with Australia and using money generated by tariffs to address a broader $1.2tn trade deficit with the rest of the world. The US maintains a trade surplus with Australia.

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As Trump ignites tariff war, a US city is embracing Canadians with all its heart

An estimated 300,000 Canadians visit Palm Springs each year and Trump’s levies threaten tourism in the region

Worried that Donald Trump’s policies are scaring away Canadians, a key segment of their tourist industry, a California resort city has put up “Palm Springs Loves Canada” signs across its downtown.

“It was a gesture to let our Canadian visitors know that what happens in Washington DC, is not the way that Palm Springs is looking at Canada,” Ron deHarte, the city’s mayor, said of the signs, which were installed on Friday.

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Trump signs orders to allow coal-fired power plants to remain open

Move aimed at addressing rise in power demand for datacenters, AI and EVs, but environmentalists call it a step back

Donald Trump signed four executive orders on Tuesday aimed at reviving coal, the dirtiest fossil fuel that has long been in decline, and which substantially contributes to planet-heating greenhouse gas emissions and pollution.

Environmentalists expressed dismay at the news, saying that Trump was stuck in the past and wanted to make utility customers “pay more for yesterday’s energy”.

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British Steel could be nationalised as PM and chancellor consider ‘all options’

Whitehall sources say Starmer and Reeves aligned in seeing steel as of ‘huge strategic importance’

Keir Starmer and Rachel Reeves are actively considering nationalising British Steel in an escalation of plans first revealed in the Guardian last year.

The prime minister said all options were on the table to secure the future of the Scunthorpe plant, which is owned by the Chinese firm Jingye and employs about 3,500 people.

Defended the welfare cuts as being based on “dignity” and criticised the Office for Budget Responsibility for not taking into account possible behavioural changes of people affected by the cuts when assessing the consequences of the policy.

Said threats from foreign powers targeting people in the UK were “growing” and the issue was constantly being raised in international talks. He added: “I think we generally underestimate that threat, and it’s very important we’re alive to it.”

Stepped up his criticism of regulators, telling MPs he was “astonished” by how many there were and saying he was “frustrated” by the barriers they put up.

Called for an inquiry into the killing of 15 aid workers in Gaza and said international law “underpins everything we do bilaterally and multilaterally” when questioned about the conflict in the Middle East.

Said he would speak to the intelligence agencies and the Kyiv government after Volodymyr Zelenskyy, the Ukraine president, said two Chinese citizens had been captured fighting as part of the Russian army.

Said changes to the social care system could come as soon as next year amid a review led by Lady Louise Casey.

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Iran says talks with US will be indirect, contrary to Trump’s words

US president had trailed ‘direct talks’ and said Iran would be in ‘great danger’ if they failed

Iran, wrongfooted by Donald Trump’s revelation that “direct talks” between the US and Iran on its nuclear programme are set to start in Oman on Saturday, insisted the talks would actually be in an indirect format, but added that the intentions of the negotiators were more important than the format.

Trump on Monday threw Tehran off guard by revealing the plan for the weekend talks and saying that if the talks failed Iran would be in “great danger”. There has been an unprecedented US military buildup across the Middle East in recent weeks, and Trump’s decision to make the talks public looks designed to press Iran to negotiate with urgency.

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How Trump tariffs could push Vietnam into the arms of China

The move has sent shock waves through a region of US strategic importance that had respected Trump as tough on Beijing

Vietnam had tried to appease Donald Trump: tariffs on US goods were reduced; regulations were passed to allow Elon Musk’s SpaceX to launch its Starlink in the country. The prime minister, Pham Minh Chinh, even joked in January that he would happily “play golf all day long” at Trump’s Mar-a-Lago home in Florida if it could “bring benefits to my country and my people”.

The strategies do not appear to have worked. Trump has inflicted an extraordinary 46% tariff on Vietnam that threatens to devastate its economic growth plans and undermine relations between the two countries. The tariff has sent shock waves through Vietnam, a manufacturing powerhouse where Trump has always been fairly popular, and across south-east Asia.

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US workers feel effects of Trump cuts: ‘I am seeing my work dry up’

President’s effort to rapidly shrink federal government is already reaching private sector as recession fears loom

Americans are grappling with climbing costs, falling sales and dwindling work as Donald Trump moves to overhaul the federal government and economy.

As the US president pushes forward with an array of controversial policies, from sweeping cuts to blanket tariffs, the Guardian asked US workers how they have been affected. Some requested anonymity for fear of retaliation.

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US Supreme Court clears way for Alien Enemies Act deportations – but migrants must get court hearing | First Thing

Family members of many deported Venezuelans deny alleged gang ties. Plus, global executions hit 10-year high in 2024

Good morning.

The supreme court on Monday allowed the Trump administration to use an 18th-century wartime law to deport Venezuelan people, but said they must get a court hearing before they are taken from the US.

What was the reaction? Lee Gelernt, an attorney with the American Civil Liberties Union, which filed suit against the deportations, said the court’s ruling that deportees were entitled to due process was an “important victory”. Donald Trump posted: “The Supreme Court has upheld the Rule of Law in our Nation by allowing a President, whoever that may be, to be able to secure our Borders, and protect our families and our Country, itself. A GREAT DAY FOR JUSTICE IN AMERICA.”

What did Beijing say on Tuesday? China’s commerce ministry accused the US of “blackmail” and said Trump’s threats of additional 50% tariffs if Beijing did not reverse its own 34% reciprocal tariff were a “mistake on top of a mistake”.

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Bank ‘should cut UK interest rates to at least 4% in May amid tariff turmoil’

Ex-Bank of England deputy governor Charlie Bean says cut of 0.5 points needed because of ‘crazy situation’ in US

The Bank of England should use its meeting next month to cut interest rates by at least half a percentage point to 4% in response to the financial turmoil created by Donald Trump’s trade tariffs, the former deputy governor Charlie Bean has said.

He believes an aggressive strategy is needed to combat the fallout from Trump’s tariff war, which has knocked trillions of pounds off global stock markets, undermining business and consumer confidence.

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Netanyahu discusses Gaza and tariffs with Trump at White House meeting

President says the pair had a ‘great discussion’ while prime minister says Israel will eliminate trade deficit with US

The Israeli prime minister, Benjamin Netanyahu, met with Donald Trump on Monday for the second time since the US president’s return to office, marking the first effort by a foreign leader to negotiate a deal after Trump announced sweeping tariffs last week.

Speaking alongside Trump in the Oval Office, Netanyahu said Israel would eliminate the trade deficit with the US. “We intend to do it very quickly,” he told reporters, adding that he believed Israel could “serve as a model for many countries who ought to do the same”.

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