In This Article:
Emmanuel Macron has vowed that Europe will retaliate to any metal tariffs imposed by Donald Trump’s administration days after his meeting with the US president.
The French leader pledged to impose “reciprocal” tariffs on US steel and aluminium if the White House presses ahead with 25pc duties on European imports.
Mr Macron said: “Europeans will respond and therefore there will be reciprocal tariffs.”
During a state visit to Portugal, the French president said the Continent “must protect ourselves, defend ourselves”.
The comments come days after he met with Mr Trump in the White House, with the pair sharing awkward handshakes during appearances in front of the press.
Read the latest updates below.
05:56 PM GMT
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05:49 PM GMT
Investors underestimating Trump tariffs, economist warns
The market is underestimating the probability of major tariff hikes by Donald Trump, an economist has said.
Jonas Goltermann, of Capital Economics, said: “We think that the probability of significantly higher tariffs is still being underestimated and that the dollar will appreciate as Trump follows through on his threats.
“Admittedly, whether the mooted tariffs on China, Canada, and Mexico will in fact come into effect next week remains unclear. Given Trump’s unpredictability and the torrent of sometimes contradictory announcements, investors’ ‘I’ll believe it when I see it’ approach is not all that surprising. But our assessment remains that the administration will follow through on the bulk of Trump’s threats over the coming months, even if the timing and exact levels of tariffs implemented are hard to predict.
“It seems clear that the perceived risk of higher tariffs has increased in the wake of Trump’s pronouncements this week. It is harder to judge the extent to which market participants are building in higher US tariffs though.
“Given that China, Mexico, and Canada appear first in the firing line, it remains surprising that both the [Chinese] renminbi and the [Mexican] peso have held up relatively well this week, and over the period since Trump’s election win as a whole.”
05:35 PM GMT
FTSE 100 rises amid hopes of new UK-US trade deal
The FTSE 100 rose today as hopes increased of a potential trade deal between the UK and the US, following a week of crunch talks in Washington.
London’s main stock market index was up 0.6pc, to end the day at 8,809.74.
The FTSE 100, which is internationally-focused, was also lifted amid a positive start to trading over in New York.
Sir Keir Starmer returned to the UK today following a trip to the White House to meet with Donald Trump, who suggested a trade deal could spare British exports from US tariffs.
Mr Trump has said he plans to impose tariffs on Canada and Mexico starting next Tuesday, and to double the 10pc universal tariff charged on imports from China.
Investors have also been digesting the potential impact of greater defence spending in Europe amid crunch talks with leaders over Russia’s war in Ukraine.
Kathleen Brooks, research director at XTB, said that with Mr Trump’s “fondness for the UK, and another invitation for a state visit at Buckingham Palace, this means that the UK is now the golden child of Europe”.
“This is reflected in the UK’s asset prices: the FTSE 100 is higher on Friday as hopes grow for a quick trade deal with the US,” she said.
“The UK is also expected to avoid tariffs, after a successful trip to the US by Sir Kier Starmer.”
Elsewhere in Europe, top indexes enjoyed a late-afternoon rebound having been declining during the day. In Paris, the Cac 40 rose 0.1pc and, in Frankfurt, the Dax was flat at close.
05:22 PM GMT
HP considers boosting US manufacturing amid tariff threats
The boss of HP has said the printer and PC maker is considering more US manufacturing.
Enrique Lores told Bloomberg Television that moving some manufacturing to the US is “one of the scenarios that we are contemplating”.
However, he said that this would bring supply chain challenges. “It is not only the assembly that we would be doing - it is what will it take to bring all of the different components and different suppliers we have and have them manufacture here?
“This is going be a much longer process, and it is part of the evaluation that we are doing.”
He added: “There are benefits to building products locally, and this is why we’ve gone from a very centralised model that we had a few years ago to a more decentralised model.”
05:00 PM GMT
Trump-fuelled crypto boom hit by ‘meltdown’
Bitcoin slumped below $80,000 today for the first time since November amid fears of a “full-blown bear market” for cryptocurrencies.
Concerns about the global economy fuelled by fears of a global trade war, coupled with disappointing results this week from AI chip darling Nvidia, have led investors to exit investments seen as risky.
One of the most volatile assets currently is Bitcoin, which briefly dived below $80,000 on Friday for the first time since November.
Its low of $78,225.84 was more than 25 percent off the levels above $109,000 touched last month as Trump entered office, and was down 20 percent in the past week alone. It is currently priced at $84,504.
David Morrison, an analyst at Trade Nation, said: “The crypto sector is suffering a bit of a meltdown today.”
He noted that another popular cryptocurrency, ethereum, had lost nearly half its value since mid-December.
“According to some analysts, that represents not just a correction, but a full-blown bear market,” he added, noting that Bitcoin had lost most of the gains made since Trump was elected in November.
Mr Morrison said the gains were driven by hopes of a much friendlier regulatory environment, which have now unravelled to some extent.
04:53 PM GMT
BYD plans third European factory after tariff hike
China’s BYD intends to build a third European factory as the electric carmaker responds to EU tariffs.
Bloomberg reported that Stella Li, one of BYD’s most senior managers, told reporters that a decision on the possible location would take place in the next 18 months. It has already committed to factories in Hungary and Turkey.
04:45 PM GMT
Shipping giant warns over Trump tax on Chinese ships
Donald Trump’s plans to hit Chinese-made vessels with high port fees would hit all firms in a container shipping industry in which most vessels are built in China, a French shipping giant has warned.
The Trump administration has proposed charging up to $1.5m (£1.2m) for Chinese-built vessels entering US ports as part of its investigation into China’s expansion in the shipbuilding, maritime and logistics sectors.
But Ramon Fernandez, finance chief of France’s CMA CGM said: “China builds more than half of all container ships in the world, so this would have a significant effect on all shipping firms.”
CMA CGM, the world’s third-largest container shipping line, has a large US presence, operating several port terminals while its subsidiary APL has 10 US-flagged vessels.
04:19 PM GMT
Commodity prices fall as investors turn to dollars
The dollar has risen in value against a basket of leading rivals, as traders turn to a safe-haven amid concerns about rising tariffs.
Axel Rudolph, senior technical analyst at online trading platform IG, said: “Most commodity prices slid on the last day of the month as the US dollar appreciated on safe haven flows triggered by renewed tariff threats by US President Trump.
“Tuesday March 4 is crunch day when it’ll become clear whether the US president bluffed once more or is going to go ahead with up to 25pc tariffs on his neighbours Canada and Mexico.”
Brent Crude, the global benchmark for oil, is down 0.1pc at $73.29 a barrel. Steel prices fell 0.9pc.
The US dollar index rose 0.9pc.
04:00 PM GMT
‘Buy the dip’ buyers missing on Wall Street, says Goldman Sachs
Investors who like to “buy the dip” when Wall Street stocks fall are missing, Goldman Sachs traders have said.
Bloomberg reported that the investment bank’s note to clients said: “Imagine everyone is looking to play for a bounce, but right now with possible tariffs looming, positioning and technicals, the dynamics don’t line up that well to follow the ’ole playbook.”
The note said traditional opportunity to buy when prices go down has been undermined by “manic headline roulette”, amid a string of announcements by US president Donald Trump that various tariffs are on their way.
However, the bank said that there was no evidence of panic selling. “We haven’t seen any capitulatory flows on our desk that could suggest investors are throwing in the towel,” the note said.
Yesterday, the Nasdaq fell 2.8pc, while the S&P 500 lost 1.6pc.
03:49 PM GMT
Wall Street rises in choppy trading
Wall Street’s main indexes have risen this afternoon, despite choppy trading as investors took stock of fresh economic figures.
A US Commerce Department report showed that inflation rose in line with expectations last month. However, consumer spending, which accounts for more than two-thirds of the economy, dropped 0.2pc after a 0.8pc increase in December.
Peter Cardillo, chief market economist at Spartan Capital Securities, said: “Spending came in lower than we were looking for... most of it I would attribute to a cooling economy, which presents a dilemma for the Fed in the sense that you still have inflation and you have an economy that is moving lower. If you add them together, that equals stagflation.”
Traders see the Fed lowering borrowing costs twice by December, little changed from before the new data.
The Dow Jones and Nasdaq are up 0.5pc, while the S&P 500 is up by 0.4pc.
The Vix, also known as Wall Street’s fear gauge, touched a one-month high shortly after trading began this afternoon but has been dropping since.
03:41 PM GMT
Pound rises as US inflation drops
The pound strengthened against the dollar as the Federal Reserve’s preferred measure of inflation declined last month.
Sterling was up 0.1pc against the US currency to $1.262 as the US PCE index fell from 2.6pc to 2.5pc in January.
The pound is on track for its strongest month against the dollar since September.
With that, I will thank you for following these updates and hand you over to Alex Singleton.
03:17 PM GMT
Canadian economy expands before Trump tariff blow
Canada’s economy grew faster than expected in the final three months of last year, official figures show as uncertainty looms over Donald Trump’s tariff plans.
Gross domestic product rose by 2.6pc in the fourth quarter, Statistics Canada said amid rising household spending, business investment and exports.
Canada was the first G7 economy to begin cutting interest rates last year after raising borrowing costs to tame inflation.
“Canada’s economy showed some evident sparks of life in the final quarter of 2024 as it responded to lower interest rates,” CIBC economics said in a note on the latest GDP numbers.
“But that flame could still be extinguished in 2025 if the country faces a tariff wall.”
US President Trump had announced - then halted - 25pc tariffs on Canadian and Mexican imports this month over illegal immigration and deadly fentanyl.
He said on Thursday that the pause would end on Tuesday March 4.
02:59 PM GMT
Europe must not be weak over Trump tariffs, says Macron
Emmanuel Macron said that Europe “must not be weak” in the face of 25pc metal tariffs threatened by Donald Trump.
Europe “will have to respond” if tariffs go ahead, the French president said in a press conference alongside Portuguese prime minister Luis Montenegro.
Mr Trump vowed on Wednesday to hit the European Union with 25pc tariffs - the same level set to apply to imports from Canada and Mexico starting next week.
He said the new tariffs would hit products including cars, adding that the EU has “really taken advantage of us”, further fuelling tensions between Washington and its European allies.
Montenegro said: “Of course Europe will have to react to the tariffs, at the same or similar level.”
He added it “would make no sense not to do the same”.
02:37 PM GMT
US stock indexes lacklustre as inflation measure slows
Wall Street’s main indexes had a subdued start after data showed inflation came in as expected in January.
The Dow Jones Industrial Average rose 20.3 points, or 0.1pc, at the open to 43,259.84 amid concerns that Donald Trump’s policies could further fuel price pressures.
The S&P 500 fell 4.8 points, or 0.1pc, to 5,856.74​, while the Nasdaq Composite dropped 67.2 points, or 0.4pc, to 18,477.17.
02:34 PM GMT
Macron vows to hit back at Trump tariffs days after meeting
Emmanuel Macron has vowed that Europe will retaliate to any metal tariffs imposed by Donald Trump’s administration days after his meeting with the US president.
The French leader pledged to impose “reciprocal” tariffs on US steel and aluminium if the White House presses ahead with 25pc duties on European imports.
Mr Macron said: “Europeans will respond and therefore there will be reciprocal tariffs.”
During a state visit to Portugal, the French president said the Continent “must protect ourselves, defend ourselves”.
The comments come days after he met with Mr Trump in the White House, with the pair sharing awkward handshakes during appearances in front of the press.
02:18 PM GMT
Petrol prices ‘uncomfortably close’ to Ukraine war highs, says AA
Petrol prices remain “uncomfortably close” to their highs during the first two years of the Ukraine war, the AA has warned as oil prices slump globally.
The average price at the pump has remained at 139.8p a litre over the last week despite a “nosedive” in wholesale prices over the last fortnight, according to the motoring group.
Brent crude, the international benchmark, fell as much as 1.4pc today to $73 a barrel, putting it on course for a fall of more than 4pc from more than $76 at the start of in February.
As a rule of thumb, every $2 change in the cost of oil leads to a 1p a litre change at the pump, at a constant $/£ exchange rate (oil and commodity fuel are traded in dollars).
However, the AA’s own figures show prices are actually higher since the start of the month, when they stood at 139.2p.
Data from the Department for Energy Security and Net Zero shows average prices at pump have actually increased from 138.7p at the start of the month to 139.6p.
AA spokesman Luke Bosdet said that if prices “don’t start falling pronto” the competition regulator might start to take an interest.
He said: “We also have to remember that the Chancellor maintained the freeze on fuel duty. Had she ended Rishi Sunak’s 5p fuel duty cut (6p with VAT), we would be talking about petrol at around 146p a litre.
“That would have pitched us back into the ‘perma-high’ pump price period of post covid and the first two years of the Ukraine war. Right now, we are uncomfortably close again.”
01:49 PM GMT
US consumers face higher prices from Trump’s oil squeeze, say economists
Rising refinery costs as a result of Donald Trump’s squeeze on the oil market means that consumers are likely to face higher prices for goods that use crude, according to economists.
Hamad Hussain of Capital Economics said the recent drop in oil prices is a result of the Trump administration “turning the screws on oil producers”.
This week the US has confirmed tariffs on Canada and Mexico, tightened sanctions on Iran and revoked Chevron’s licence to operate in Venezuela.
Mr Hussain said: “The latter is notable given that Chevron exports about 200,000 barrels per day of crude oil to the US, which is around one-quarter of Venezuela’s total crude output.
“Whilst this accounted for about 3pc of total US crude oil imports, these flows are almost entirely imported by Gulf Coast refiners and make up over 10pc of their total imports.
“This is because some of these refineries are geared towards processing heavier grades of oil, which Venezuela produces.
“Given that tariffs are set to be implemented on Canada and Mexico – two other key sources of heavy crude oil – the upshot is that refinery costs are more likely to rise and be passed through to US consumers.”
01:33 PM GMT
US inflation gauge drops in boost for Trump
The Federal Reserve’s preferred measure of inflation fell as expected last month in a boost for Donald Trump’s hopes for interest rate cuts.
The US personal consumption expenditure (PCE) index fell from 2.6pc in December to 2.5pc in January.
The core PCE measure fell from 2.8pc to 2.6pc.
The US president has long called for the Federal Reserve to cut interest rates in a bid to stimulate the American economy.
01:21 PM GMT
German inflation stronger than expected
German inflation was unchanged in February, official figures show, in a further blow to Europe’s largest economy.
The consumer prices index had been expected to drop to 2.7pc but was flat at 2.8pc, the federal statistics office Destatis said.
The data outlines the challenge faced by the European Central Bank, which is expected to cut interest rates next week amid the threat to growth from US tariffs and sharply declining inflation in France, its second largest economy.
12:59 PM GMT
Wall Street poised for rebound after tariff turmoil
US stock indexes were slughtly higher in premarket trading after a volatile week.
Investors are looking ahead to crucial inflation data that is expected to guide the Federal Reserve’s monetary policy decisions.
The personal consumption expenditure (PCE) index, the Fed’s preferred inflation measure, is due at 1.30pm UK time.
The data is expected to show prices increased by 2.5pc in January on an annual basis, compared with a 2.6pc rise in the month before.
It comes after a sharp sell-off this week amid concerns that AI company valuations are overblown and concerns about Donald Trump’s tariff plans.
In premarket trading, the Dow Jones Industrial Average was up 0.4pc and the S&P 500 gained 0.2pc but the Nasdaq 100 was flat.
12:23 PM GMT
FTSE 100 bucks global sell-off
The FTSE 100 bucked the global gloom after several stocks were boosted by strong annual results.
The blue-chip index was up 0.3pc and heading for its fourth consecutive day of gains and a weekly gain of 1.4pc.
British Airways owner IAG climbed 5.3pc to the top of the index after reporting a 27pc surge in annual operating profit, exceeding market forecasts, alongside plans for share buybacks.
Engineering firm IMI rose 5pc following the announcement of a 10pc dividend hike from 2023 levels and a new share buyback program.
After surging more than 6pc in January, the FTSE 100 is poised to close February with a modest gain of over 1pc, maintaining its positive momentum in 2025.
Other stock indexes in Europe, meanwhile, were under pressure after President Trump announced that a 25pc tariff on imports from Canada and Mexico would start on March 4, and that goods from China would incur an additional 10pc duty.
The Cac 40 in Paris and the Dax in Frankfurt were both last down 0.4pc.
Focus will later shift to the US personal consumption expenditure (PCE) data, which could provide insights into potential monetary policy decisions for the world’s largest economy.
11:57 AM GMT
Investors ‘lulled into a false sense of security’ on tariffs
Investors had been “lulled into a false sense of security” over Donald Trump’s tariff threats before this week’s sell-off, according to analysts.
The US president had delayed 25pc tariffs on Mexico and Canada for a month but confirmed on Thursday that they would come into force as expected next week. It prompted sharp falls on global stock markets.
Kathleen Brooks, research director at XTB, said: “The market had been lulled into a false sense of security regarding tariffs, but their risks to economic growth and inflation are coming back to haunt investors.
“The immediate knock to sentiment has seen equity indices fall around the world.”
11:44 AM GMT
Oil prices plunge as Trump ramps up trade war
Oil prices are on track for their biggest monthly loss since September after Donald Trump stepped up his global trade war.
Brent crude, the international benchmark, was down 1.4pc today to $73 a barrel, putting it on course for a fall of more than 4pc in February.
US-produced West Texas Intermediate slid 1.5pc towards $69 after the US President said he would impose import levies on Canada and Mexico next week as planned, as well as a further 10pc tariff on China.
The tariff plans have pushed up the value of the dollar, making oil priced in the currency more expensive.
Chris Weston at Pepperstone Group said: “Tariffs are back in the crosshairs.
“A market that had reduced its sensitivity to recent tariff headlines has had to reconsider that reaction function.”
10:58 AM GMT
FTSE 100 rises amid surging dollar
The FTSE 100 has given up its earlier losses and was trading higher on the day in contrast to its major European peers.
The UK’s blue-chip stock index was up 0.2pc as it was boosted by the strengthening dollar.
The US currency is moving higher as investors respond to Donald Trump’s latest tariff threats, which could force the Federal Reserve to keep interest rates higher to suppress a likely jump in inflation.
A large proportion of FTSE 100 companies measure their finances in dollars, and are thus boosted when the global reserve currency strengthens.
10:45 AM GMT
The EU deal that could wreck Starmer’s relations with Trump
Sir Keir Starmer met Donald Trump in the Oval Office on Thursday to discuss everything from Ukraine to trade deals.
The Prime Minister smoothed the way with a letter from King Charles personally inviting the US president for a state visit.
No date has been confirmed. Yet officials would do well to make sure it is not in May.
That month, Starmer will host the UK’s first summit with the EU, an opportunity to foster better cooperation on matters ranging from Channel migrants to vegetable imports.
Read how it leaves the Prime Minister facing a delicate balancing act.
10:14 AM GMT
Debt markets calmed by sharp drop in French inflation
Contrary to what might be expected, bond yields are falling in the wake of Donald Trump’s latest tariff threats, following a boost from French inflation figures.
The yield on the 10-year UK gilt, a benchmark for government borrowing costs, was down four basis points to 4.47pc, while the US 10-year yield edged down to 4.25pc.
Investors snapped up bonds despite US President Donald Trump floating the idea of a 25pc “reciprocal” tariff on European cars and other goods, sparking renewed worries of a possible trade war.
Yields fell as figures showed French inflation fell from 1.8pc in January to a four-year low of 0.9pc in February.
It ramped up expectations that the European Central Bank will cut interest rates next month, with traders pricing in another quarter of a point reduction.
09:41 AM GMT
Pound surges against dollar amid inflation fears
The pound is on track for its strongest month against the dollar since September amid fears higher inflation will keep interest rates higher in Britain.
Sterling was up 1.2pc against the US currency after the unwind of so called Trump trades and figures showing UK inflation jumped to 3pc in January.
After Donald Trump’s election, investors had expected the dollar to go higher and the Federal Reserve to hold off cutting interest rates as a result of the US president’s tariff policies.
There was speculation that this would not play out after data showed weakening consumer confidence in America.
However, the pound was last down 0.1pc against the dollar today at $1.264 after the US president said he would impose tariffs on Canada and Mexico next week and ramp up tariffs on China.
09:18 AM GMT
Bitcoin plunges as investors flee riskier assets
Bitcoin has plunged 25pc over the last month as the market uncertainty also dealt a blow to the crypto sphere.
Bitcoin dived below $80,000 for the first time since November this week, tumbling as much as 7.1pc today.
Its low of $78,956 was more than 25pc off the levels above $109,000 touched last month.
Caroline Bowler, chief executive of BTC Markets, said sentiment was last like this in 2022 when prices plummeted during the so-called “crupto winter” amid rising interest rates and the collapes of the FTX exchange.
She said: “This tanking can be viewed as a response to macro fears on Trump’s tariffs and geopolitical uncertainty.”
08:53 AM GMT
Uncertainty means interest rates must not be cut too quickly, warns Bank of England deputy
The Bank of England must not cut interest rates too quickly because inflation is rising and productivity remains weak, according to its deputy governor.
Sir Dave Ramsden dashed hopes of a faster drop in borrowing costs as he warned that pay growth was much stronger than he expected.
The former Treasury official, who called for faster rate cuts last year pointed to “increased uncertainty” in the economy against a backdrop of rising prices and weaker growth.
Inflation hit 3pc last month and is forecast to rise to close to 4pc towards the end of the year, almost double the Bank’s target.
While Sir Dave said there was still a risk that Rachel Reeves’s record tax raid could inflict more damage to growth through faster job losses, he said he no longer believed the Bank would have to slash rates more quickly to support the economy because of the risk it could stoke inflation.
Speaking in Cape Town, South Africa, Sir Dave said: “Because of the evidence of recent months I no longer think that risks to hitting the 2pc inflation target sustainably in the medium term are to the downside. Instead, I think they are two sided.”
He added: “Given the increased uncertainty and risks to inflation on both sides – from the near-term outlook to inflation, and from developments in the global economy – I am even more certain than I was that taking a gradual and careful approach to the withdrawal of monetary restraint is appropriate.”
08:45 AM GMT
European shares hit by Trump tariff concerns
European shares extended declines after US President Donald Trump said his proposed tariffs on Mexican and Canadian goods would take effect next week.
The pan-European Stoxx 600 index fell as much as 0.9pc, with losses of 2pc in industrial resources companies as metal prices came under pressure due to the imminent tariff plans.
Mr Trump also vowed a fresh 10pc duty on Chinese imports on top of the already existing 10pc tariff levied on February 4.
Technology stocks lost 1.9pc, following a sell-off in AI darling Nvidia on Wall Street after its earnings report failed to impress investors.
Car makers also dropped 1pc, continuing their decline from the previous session when Trump floated a 25pc “reciprocal” tariff on European cars and other goods.
Valeo fell 8.1pc after the car parts supplier reported its annual results. Chief executive Christophe Perillat said he saw a marginal impact on earnings from US tariffs on steel and aluminium.
08:37 AM GMT
Asian shares plummet as Trump announces new tariffs on China
Asian markets have plunged in the wake of Donald Trump’s announcement of an extra 10pc tariff on China from next week.
Seoul tanked more than 3pcand Tokyo lost 2.9pc, while Shanghai and Jakarta were at least 2pc lower.
Sydney, Mumbai and Bangkok dropped more than 1pc, with Singapore and Manila also in the red.
Among the worst-hit were chip firms, with Samsung and SK hynix well down in Seoul.
Advantest plunged almost 9pc in Tokyo, and Tokyo Electron shed more than 4pc. Japanese tech investor SoftBank was also sharply lower.
Among car makers, Toyota, Nissan and Suzuki all fell deep into the red in Tokyo.
Hong Kong was off more than 3pc, with high-flying tech firms also weighed by profit-taking at the end of a blockbuster February that has helped the Hang Seng Index to a three-year high.
Kok Hoong Wong of Maybank Securities said: “Trump tariffs threats are obviously on everyone’s mind and sentiments are fragile throughout.”
08:23 AM GMT
European stocks plunge over tariff fears
European stock markets fell heavily as Donald Trump’s latest tariff threats rattled investors.
The Cac 40 in Paris dropped by 0.7pc to 8,037.02 while the Dax in Frankfurt dropped 0.7pc to 22,401.15.
08:15 AM GMT
China accuses US of using ‘tariff pressure and blackmail’
Beijing accused the United States of exerting “tariff pressure and blackmail” after President Donald Trump’s latest threat to slap an extra duty of 10pc on imports from China.
The fresh China tariffs, in addition to a tariff of 10pc levied on February 4, coincide with Wednesday’s start of China’s annual parliamentary meet, a setpiece political event at which Beijing is expected to roll out its 2025 economic priorities.
Washington had “used the fentanyl issue to insist on tariff pressure and blackmail,” foreign ministry spokesperson Lin Jian told a daily briefing.
“It has created a serious impact, pressure, coercion and threat to the dialogue and cooperation between the two sides in the field of drug control,” Lin said of the tariffs, warning that they would backfire.
“Remarkable results have been achieved,” he added, from China’s anti-drug cooperation with the United States, saying China was the world’s first country to officially control fentanyl-like substances.
On Thursday, Trump said his proposed 25pc tariffs on Mexican and Canadian goods would take effect on Tuesday, along with the extra duty of 10pc on Chinese imports.
The announcement leaves Beijing less than a week to publish countermeasures, as Trump’s administration shows signs of a hardening stance towards its strategic rival despite backing down on the threat of tariffs of up to 60pc when he took office.
08:09 AM GMT
UK markets fall amid tariff fears
The FTSE 100 fell at the open amid concerns that Donald Trump’s latest tariffs will impact global trade.
The UK’s internationally-focused stock index fell 0.3pc to 8,727.28 while the midcap FTSE 250 dropped by 0.8pc to 20,254.77.
08:07 AM GMT
China faces ‘numerous difficulties’ admits Xi
Xi Jinping has admitted the country’s economy still faces “numerous difficulties” as the world’s second largest economy prepares for fresh tariffs to be imposed by Donald Trump.
The Chinese President said: “At present, the unfavourable impact of changes in the external environment has deepened, and China’s economy still faces numerous difficulties and challenges.”
Xi, who was writing in an article in Qiushi, the ruling Communist Party’s official journal, said: “At the same time, it must be recognized that China’s economic fundamentals remain solid, with numerous advantages, strong resilience, and vast potential.
“The conditions supporting long-term growth and the overall positive trajectory have not changed.”
It comes as China’s foreign ministry said it strongly opposes the threat of an additional 10pc tariffs from the US President and will take “all necessary measures to firmly safeguard its legitimate interest”.
The US is once again using the fentanyl issue as a pretext to threaten China, ministry spokesperson Lin Jian told a regular press conference, adding that there are no winners in trade and tariff wars.
08:02 AM GMT
Markets plunge worldwide as Trump launches new trade war threats
Stock markets have plunged around the world after Donald Trump raised the stakes in his global trade war.
European markets were on track to drop after Hong Kong’s Hang Seng index dropped 3.4pc, its biggest fall since October, while Japan’s Nikkei 225 sank by 2.9pc in its sharpest decline since September.
It comes after the US president announced he would push ahead with 25pc tariffs on imports from Mexico and Canada and to double tariffs on Chinese products to 20pc.
He has also warned the European Union that it could be hit with 25pc duties.
However, in a boost for Britain, Mr Trump suggested the UK could be exempted from his tariffs following his meeting with Sir Keir Starmer.
He also said that the two countries would end up with a very good trade agreement that would be finalised quickly.
07:58 AM GMT
Good morning
Thanks for joining me. Global stock markets are sinking after Donald Trump announced he would ramp up tariffs on China and follow through with planned levies on Mexico and Canada.
Asian markets ended a volatile week on a painful note, with European stocks on track to do the same.
5 things to start your day
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HSBC says bias against fossil fuels must end | Bank joins backlash against green finance with call to acknowledge role of ‘carbon economy’
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Gatwick Airport’s second runway delayed by Transport Secretary | Decision on £2.2bn expansion pushed back despite pledge to ‘defy eco-warriors’
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Starmer’s hopes of an EU deal clash with Trump’s tariffs | Britain faces delicate balancing act as ties between the US and Europe are tested
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Ambrose Evans-Pritchard: No Mr Trump, the EU was created to ‘screw’ Russia | US threat of 25pc tariffs on Europe is the bitter fruit of 30 years of grievances
What happened overnight
Shares retreated in Asia, with benchmarks in Japan, Hong Kong and South Korea tumbling more than 2pc over Donald Trump’s decision to push ahead with 25pc tariffs on imports from Mexico and Canada and to double tariffs on Chinese products to 20pc left investors reeling.
Tokyo’s Nikkei 225 index lost 2.9pc to 37,155.50, pulled lower by plunging prices for shares in technology companies.
Computer chip test equipment maker Advantest sank 8.8pc, Disco, another equipment maker, lost 10.3pc and Tokyo Electron shed 4.5pc.
Hong Kong’s Hang Seng index dropped 3.4pc to 22,905.52, while the Shanghai Composite index lost 2% to 3,320.90.
Trump said Thursday that “the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled” for imports from Canada and Mexico.
China’s Commerce Ministry issued a statement Friday protesting Trump’s decision to raise tariffs on imports from China by 10pc, saying it violated international trade rules and would add to the “burden on American companies and consumers and undermine the stability of the global industrial chain.”
South Korea’s Kospi gave up 3.4pc to 2,532.78.
In Australia, the S&P/ASX 200 shed 1.2pc to 8,172.40.
On Wall Street, the S&P 500 dropped 1.6pc to end the day at 5,861.57 points, as the Nasdaq tumbled 2.8pc to 18,544.42 points, its biggest single-day rout in a month.
The Dow Jones Industrial Average gave up earlier gains, finishing down 0.5pc at 43,239.50 points.
In the bond market, the yield on benchmark 10-year US Treasury notes dipped to 4.265pc from 4.281pc on Wednesday night.