Tariffs: Global markets brace as US confirms China to be hit with 104% levies overnight
Trump’s total new levies climb to 104% on Chinese goods imported into US this year
The White House has confirmed China will be hit with a 104 per cent tariff rate from 12:01am ET on Wednesday.
Donald Trump’s press secretary confirmed that the measures will come into place after Beijing did not lift its retaliatory tariffs on US goods by a Tuesday noon deadline.
Earlier, the US president threatened to impose an extra 50 per cent levy on top of the existing 54 per cent tariff on Chinese imports, bringing the total levies on Chinese products imported to the US to over 100 per cent.
The Chinese foreign ministry vowed its country would “fight till the end”, amid reports it is preparing for a US imports block, as it accused America of “typical unilateralism and protectionist economic bullying”.
It is not yet clear what counter-measures Beijing is planning to impose, although the BBC reported, citing state media, that the US agricultural sector could be impacted, including a potential total ban on poultry.
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Reeves says ‘nothing off the table’ in US trade talks
Rachel Reeves has said “nothing is off the table” in US trade talks.
The UK chancellor told MPs today that a trade war is in “nobody’s interests” as she warned that the impact of Donald Trump’s sweeping global tariffs could be “profound”.
She added that the Government would remain “pragmatic” as it looks into a deal with the US.
Ms Reeves told Commons today: “This Government is clear-eyed that our response to global change cannot be to watch and wait, but instead to act decisively, to take the right decisions that are in our national interest.”
She added: “A trade war is in nobody’s interests, it is why we must remain pragmatic, cool-headed and pursue the best deal with the United States that is in our national interest.
“This remains our priority, and that was part of the discussion that I had with US treasury secretary Scott Bessent last week, but we have been clear, nothing is off the table.”
She referred to measures announced since the weekend, including on electric vehicles, and shortening times to set up clinical trials.
Ms Reeves added: “I know that the challenges facing the global economy and the potential impact could be profound, and as a Government we must step up to that challenge to deliver security for working people.”
Reeves calls Trump's tariffs a 'disproportional response'
Rachel Reeves described the United States' approach to tariffs as a "disproportional response to a genuine problem of global trade imbalances".
Conservative MP Nick Timothy asked the Chancellor in the Commons: "The Chancellor talked earlier about the Government's response to the new US trade policy, but what is the Government doing about China's abuse of the world trade system?
"In particular, what will the Government do to challenge China's status as a developing country at the WTO (World Trade Organisation) because this is the means by which China dodges so many of the rules imposed on countries like Britain and others in the West."
Ms Reeves replied: "Trade issues are for the Secretary of State for Business and Trade, but I would say this: there are rightly concerns around global trade imbalance, but the response of the United States by putting tariffs on all countries - including the UK, that does not have a trade surplus - I think, is a disproportional response to a genuine problem of global trade imbalances."
Trump backer Ackman calls for pause of at least 30 days before tariffs implemented
Billionaire Trump backer Bill Ackman has called for a pause of at least 30 days before tariffs are implemented tomorrow.
In the post on X, he added that he is “totally supportive” of the US president’s use of tariffs “to eliminate unfair trading practices”.
Badenoch urges Starmer to collaborate with other countries 'feeling brunt' of US tariffs
Kemi Badenoch has urged the prime minister to collaborate with other countries that are "feeling the brunt" of US tariffs.
"What the Prime Minister needs to do that is tough, is work with other countries where we have trade agreements, collaborating with them - whether it's the EU, the Trans-Pacific Partnership which has got Japan and Mexico, all these countries are feeling the brunt of tariffs," the Tory leader said.
"We should work with them to lower tariffs but the most important thing that he should do is get on with a UK-US trade deal."
She added: "What I'm asking the prime minister to do is pick up where we left off and make sure that we get meaningful gains for both our economies, not just get us to where we were last week before the tariffs came in."
China initiates WTO dispute over US tariffs
China has initiated a World Trade Organisation (WTO) dispute regarding US tariffs, the WTO has said.
EU says all instruments are on the table to avoid trade war, including energy
The European Union has many instruments on the table to avoid a trade war with United States, including a rise in US energy imports, a EU spokesperson said on Tuesday.
"We are absolutely ready to discuss and negotiate with the US on energy," she said.
Farage signals he would not eat chicken washed with chlorine imported from US under trade deal
Nigel Farage has signalled he would not eat chicken washed with chlorine if it was imported from the US into Britain as a result of a future trade deal.
Asked during a visit to County Durham, if he would eat chlorinated chicken, the Reform UK leader told reporters: "I have got a confession to make: I eat chlorinated salad - I bought a bag last week from a major leading supermarket. Every single bag of salad you buy in Britain is chlorine-treated.
"Do I like the sound of chlorinated chicken? No, not very much, but do you know what the most important thing with all of this is?
"If we want to free the whole thing up, provided food is labelled properly, consumers can make their own decisions.
"Frankly, we wouldn't be buying much chlorinated chicken because the cost of it being produced in America and being shipped here means it wouldn't be competitive anyway."
Watch live: Starmer faces grilling from MPs in ongoing Trump tariff turmoil
Chancellor rejecting calls for 'Buy British' campaign is 'insult' to businesses on brink, say Lib Dems
Responding to the Chancellor rejecting Liberal Democrat calls for a ‘Buy British’ campaign as “inward looking”, Liberal Democrat Treasury spokesperson Daisy Cooper MP said: “The Chancellor’s comments are an insult to businesses being pushed to the brink by Donald Trump’s trade war. This is completely out of touch with the British people who are rallying behind local businesses in their time of need.
“Instead of talking down our high-streets, the Government needs to send a clear message to the White House that they stand squarely behind British businesses and against Trump’s damaging tariffs.
“We Liberal Democrats have been clear that we want to see the Government going further and faster on working with our European and Commonwealth allies at the same time as launching this Buy British campaign as part of a national effort to boost British businesses at home and abroad.
“Buying British is a powerful way that people can get behind local businesses and show that as a country we won’t give in to Donald Trump’s bullying.”
Trump claims China 'badly wants to make a deal'
Donald Trump has claimed China “wants to make a deal, badly”.
However, in the post on Truth Social, he claimed China just “don’t know how to get it started”.
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