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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US-China trade war intensifies as Beijing’s tariffs come into effect after Trump pause

China’s 84% tariffs against US products comes into force amid market relief at Donald Trump’s move to pause steep reciprocal tariffs around the world

Donald Trump’s trade war with China entered a new phase on Thursday, as Beijing’s 84% retaliatory tariffs came into effect hours after the US president announced a pause of steep reciprocal tariffs on dozens of countries except China.

Markets rebounded after Trump’s announcement of the sudden pause, after the most volatile episode in financial markets since the pandemic.

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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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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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EU drug companies warn of exodus to US as Trump threatens import tariffs

Von der Leyen urged to take ‘rapid and radical action’ as president says tariffs on pharmaceuticals coming ‘shortly’

Pharmaceutical companies in the EU have warned of a “risk of exodus” to the US as stocks in the sector slid around the world on the back of Donald Trump’s renewed threat to impose tariffs on US drugs imports.

Drugmakers’ shares across Europe and India, another foreign drugs hub, slipped on Wednesday after Trump indicated further carnage was on the way in addition to the 20% “reciprocal tariffs” on imports that kicked in overnight.

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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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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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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 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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China vows to ‘fight to the end’ against latest Trump tariff threat

Beijing accuses US of blackmail and adding a ‘mistake on top of a mistake’ as Wednesday deadline for latest levies looms

China’s government says it will “fight to the end” if the US continues to escalate the trade war, after Donald Trump threatened huge additional tariffs in response to China’s retaliatory measures.

On Tuesday, China’s commerce ministry accused the US of “blackmail” and said the US president’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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Rightwing group backed by Koch and Leo sues to stop Trump tariffs

New Civil Liberties Alliance says president’s invocation of emergency powers to impose tariffs is unlawful

A libertarian group backed by Leonard Leo and Charles Koch has mounted a legal challenge against Donald Trump’s tariff regime, in a sign of spreading rightwing opposition to a policy that has sent international markets plummeting.

The New Civil Liberties Alliance filed a suit against Trump’s imposition of import tariffs on exports from China, arguing that doing so under the International Emergency Economic Powers Act (IEEPA) – which the president has invoked to justify the duties on nearly all countries – is unlawful.

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UK politics: Starmer sticks by manifesto pledge not to raise taxes amid tariff turmoil – as it happened

Prime minister says ‘no one is pretending tariffs are good news’ during speech on car industry

In his Times article Keir Starmer describes the Trump tariffs as “the beginning of a new era”. He has been saying this at least since last Thursday, when he spoke about the tariffs at a Q&A with journalists at Labour’s local elections campaign launch. The speech this afternoon is being described as the PM’s most considered response so far to the global economic turmoil generated by the tariffs, but we have already heard quite a lot from Starmer on this topic already, in a Sunday Telegraph article yesterday and in No 10 briefings on the calls he had with world leaders about the situation over the weekend.

Is there a coherent strategy? On the basis of what he has said so far, there are at least five elements in the mix at the moment.

John Ryan is a local hero and we are truly humbled that he has publicly endorsed Reform UK ahead of May’s elections in Doncaster.

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Falling Australian dollar spells bad news for travellers and shoppers

The value of one Australian dollar dropped to a low of 59.64 US cents, its lowest point since April 2020

Consumers and travellers will face higher prices after the Australian dollar fell to Covid-era lows, as markets reel from Donald Trump’s “liberation day” tariff plan.

Fears of a global recession dragged the Australian dollar sharply lower on Monday against the country’s major trade partners and to its lowest point against the Euro, pound and US dollar since 2020.

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Asian markets plunge further amid tariff fallout; Trump says ‘sometimes you have to take medicine’ – business live

Japan’s Nikkei 225 tumbles nearly 9% on Monday as Hong Kong’s Hang Seng down 8% and South Korea trading temporarily halted amid Trump tariff concerns

Hong Kong stocks have plummeted more than 9% at open, while Singapore stocks dropped over 7%, according to reports.

Hong Kong and Chinese stocks dived on Monday as markets around the world crumbled in the face of the widening global trade war and fears it will unleash a deep recession, Reuters says.

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Asian markets plunge further amid tariff fallout; Trump says ‘sometimes you have to take medicine’ – business live

Japan’s Nikkei 225 tumbles nearly 9% on Monday as Hong Kong’s Hang Seng down 8% and South Korea trading temporarily halted amid Trump tariff concerns

Hong Kong stocks have plummeted more than 9% at open, while Singapore stocks dropped over 7%, according to reports.

Hong Kong and Chinese stocks dived on Monday as markets around the world crumbled in the face of the widening global trade war and fears it will unleash a deep recession, Reuters says.

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Asian share markets routed in early trading as Trump says ‘you have to take medicine’

US president tells reporters the levies are ‘medicine to fix something’ as Nikkei tumbles nearly 9% in early trading, worsening huge losses from last week’s announcement

Donald Trump said foreign governments would have to pay “a lot of money” to lift sweeping tariffs that he characterised as “medicine,” as markets in Asia plunged in early trading on Monday.

Speaking to reporters aboard Air Force One late on Sunday, the US president indicated he was not concerned about market losses that have already wiped out nearly $6tn in value from US stocks. “I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he said.

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Asian share markets routed in early trading as Trump says ‘you have to take medicine’

US president tells reporters the levies are ‘medicine to fix something’ as Nikkei tumbles nearly 9% in early trading, worsening huge losses from last week’s announcement

Donald Trump said foreign governments would have to pay “a lot of money” to lift sweeping tariffs that he characterised as “medicine,” as markets in Asia plunged in early trading on Monday.

Speaking to reporters aboard Air Force One late on Sunday, the US president indicated he was not concerned about market losses that have already wiped out nearly $6tn in value from US stocks. “I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he said.

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Government will step in to support key industries amid tariff turmoil, says Starmer

Carmakers will be given more flexibility over targets on transitioning to electric vehicles

Keir Starmer has said the government will step in to support key British industries, as business grapples with the economic turmoil unleashed by Donald Trump’s global tariffs.

As the government attempts to counter the impact of the White House hitting the UK with a 10% base levy on exports to the US, the prime minister will promise to help shelter vulnerable sectors and will implement key parts of the industrial strategy months early.

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