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Donald Trump and Xi Jinping cancelled a scheduled phone call on Tuesday after China announced retaliatory tariffs on the US.
Mr Trump had been scheduled to speak to Mr Xi on Tuesday, just hours after the US president imposed fresh tariffs on the world’s second largest economy.
China retaliated within minutes, imposing levies on US imports and putting several companies, including Google, on notice for possible sanctions.
President Trump said on Tuesday night that he is in “no rush” to speak with his Chinese counterpart Xi Jinping despite expectations of a phone call to discuss the escalating US-China trade war.
Mr Trump said the tariffs on China were merely “an opening salvo”.
“If we can’t make a deal with China, then the tariffs would be very, very substantial,” he added.
The call was cancelled despite Peter Navarro, Mr Trump’s trade adviser, earlier claiming that the pair would discuss a potential tariff pause, according to the Wall Street Journal.
Asked if the discussions could lead to a reprieve for Beijing similar to the ones extended to Mexico and Canada, Mr Navarro said: “It’s up to the boss. I never get ahead of the boss.”
He added: “Let’s see what happens with the call today.”
American tariffs on imports from Canada and Mexico had also been set to go into effect on Tuesday before Mr Trump agreed to a 30-day pause as the two countries acted to address his concerns about border security and drug trafficking.
John Gong, a professor at the University of International Business and Economics in Beijing, called China’s response a “measured” one.
“I don’t think they want the trade war escalating,” he said. “And they see this example from Canada and Mexico and probably they are hoping for the same thing.”
During his first administration, China and the US engaged in an escalating tit-for-tat trade war in 2018, when Mr Trump repeatedly raised tariffs on Chinese goods, prompting retaliation from Beijing.
This time, China said it would implement a 15 per cent tariff on coal and liquefied natural gas products as well as a 10 per cent tariff on crude oil, agricultural machinery and large-engine cars imported from the US.
“The US’s unilateral tariff increase seriously violates the rules of the World Trade Organization,” China’s state council tariff commission said in a statement.
“It is not only unhelpful in solving its own problems, but also damages normal economic and trade cooperation between China and the US.”
The impact on US exports may be limited. Though the US is the biggest exporter of liquid natural gas (LNG) globally, it does not export much to China.
In 2023, the US exported 173,247 million cubic feet of LNG to China, about 2.3 per cent of its total natural gas exports, according to the US Energy Information Administration.
However, experts have predicted the engine levy could be painful for General Motors, which is adding the Chevrolet Tahoe and GMC Yukon to its China line-up.
Ford, which exports the Mustang and F-150 Raptor pickup could feel similar pain.
Meanwhile, hedge funds scrambled to sell shares in North American and European companies last month in a sign that the world’s top money managers are preparing for a global recession.
Hedge funds piled out of stocks which might be vulnerable to an economic slump in January, according to data from Goldman Sachs, amid growing concerns about market turmoil and the prospect of a global downturn.
The funds instead focused on buying shares that are most likely to withstand any incoming recession, including by picking up stocks that generate reliable returns regardless of the state of the economy, such as healthcare and utilities companies.
Elsewhere, the European Union said it wants to engage swiftly with the United States over Mr Trump’s planned tariffs.
Trade chief Maros Sefcovic said he wanted an “early engagement” and was awaiting confirmations of the appointment of Mr Trump’s picks for commerce secretary, financier Howard Lutnick, and US trade representative, Jamieson Greer.
“We are ready to engage immediately and we hope that through this early engagement, we can avoid the measures which would bring a lot of disturbance to the most important trade and investment relationship on this planet,” he told reporters.
Mr Navarro said Europe was hurting the United States with its value added tax on cars. EU countries apply VAT to sales of all cars, domestic and foreign.
Mr Trump is considering plans to impose a 10 per cent tariff on the block, The Telegraph understands.
A source close to Mr Trump’s administration said there was not broad agreement “but some want to put a 10 per cent tariff on the EU”. The source added: “They’re talking about doing it on all imports from the EU.”
A second source told The Telegraph: “Trump is testing the water with Canada and Mexico and what he can get away with.”
Read the latest updates below.
08:23 PM GMT
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08:05 PM GMT
Trump says China retaliatory tariffs are ‘fine’
Donald Trump has told reporters that he is in no rush to speak to Mr Xi.
He said “that’s fine” when asked about China’s retaliatory tariffs.
07:43 PM GMT
Wall Street climbs after investors ‘breathed sigh of relief’
Wall Street’s three major indexes climbed today after investors turned optimistic for a trade breakthrough between the US and China.
New 10pc US tariffs on Chinese imports took effect this morning, which China countered with levies on US goods. It is unclear when the country’s leaders would talk.
Mr Trump had said over the weekend he would impose a 25pc tariff on goods from Mexico and Canada. But he agreed to a 30-day pause on Monday, in return for border and crime concessions from both countries.
Sam Stovall, chief investment strategist at CFRA Research, said: “The president was so quick to offer a 30-day stay of execution to Mexico and Canada, so you get the idea that maybe what he’s really trying to do is embrace a quick declaration of victory which doesn’t change much from a trade perspective.
“Investors have been breathing a sigh of relief today and we’ll see if a month from now they can continue to breathe that sigh of relief.”
The S&P 500 rose 0.8pc, the tech-heavy Nasdaq jumped 1.2pc and the Dow Jones rose 0.4pc.
Alphabet was up 2pcpc ahead of its quarterly results, which are due after Wall Street closes, while Nvidia advanced 2.3pc.
07:26 PM GMT
US job openings fall
US job openings fell by the most in 14 months in December, but steady hiring and low levels of redundancies suggested the labour market was not abruptly slowing down.
The US Labor Department’s report, issued today, showed there were 1.1 job openings for every unemployed person, down from 1.15 in November.
After the figures were issued, traders were still betting that the US Federal Reserve would cut interest rates once before the end of July.
Fed chairman Jerome Powell told reporters last week: “We do not need to be in a hurry to adjust our policy stance.”
Conrad DeQuadros, senior economic advisor at Brean Capital, said: “Fed officials are likely to judge this report as suggesting that the labour market has cooled from a previously overheated state, but that job demand remains solid relative to the available supply of workers.”
Job openings had decreased by 556,000 to 7.6m by the last day of December, the Labor Department. The decline was the largest since October 2023.
07:11 PM GMT
Britain braces for flood of cheap Chinese cars as trade war spreads
Britain has so far managed to avoid Donald Trump’s blitz of threatened tariffs. But even if the US president steers clear of direct charges on imports from the UK, the impact of his trade war will be felt on our shores.
Trump’s move to slap 10pc tariffs on all Chinese goods imported into the US this week was the opening shot in an escalating trade war.
China has already announced retaliatory tariffs of 15pc on coal and liquefied natural gas from the US, as well as a 10pc tariff on crude oil and agricultural machinery that will kick in on Feb 10.
Although the US president has delayed plans to introduce 25pc tariffs on goods from Canada and Mexico after emergency negotiations with both countries, these charges are still expected to take effect in a month’s time barring any changes.
Trump warned on Sunday that tariffs on the European Union will “definitely happen” and could hit “pretty soon”.
Whatever the particulars, his message to the world is clear: this is just the beginning.
For the UK, tariffs on other countries will mean frozen investment, lower growth and a potential flood of diverted goods landing on our shores.
Foreign exporters – chiefly China – will race to offload stock they can no longer sell competitively in the US, possibly undercutting British producers.
All eyes will be on the car industry. China will be looking for buyers for its electric vehicles (EVs). Meanwhile, Germany’s mighty auto industry must also find new buyers for its vehicles if Trump hits the EU with tariffs.
06:53 PM GMT
Nasdaq jumps as investors ‘buy the dip’
Wall Street is rising today after investors opted to “buy the dip” and sentiment was helped by company profit forecasts.
The tech-heavy Nasdaq rose 1.2pc, while the S&P 500 rose 0.6pc and the Dow Jones added 0.1pc.
Craig Johnson, at investment bank Piper Sandler, told Bloomberg: “Short-term market jitters have proven good short-term buying opportunities.”
It came as Palantir Technologies surged 23.3pc after it said underlying profits would be $1.56bn (£1.25bn) for the year, rather than $1.37bn that the market was expecting.
06:19 PM GMT
Pound rises as UK looks set to avoid new tariffs
The pound rose today against the dollar as the UK looked set to avoid the disruption of US tariffs that might hit the Continent.
Sterling rose 0.4pc. It dipped less than 0.1pc against the euro.
Francesco Pesole, a foreign exchange strategist at ING, said the pound “seems to be retaining some solid footing after an American trade war was averted.
“The reason is simple: the UK has little to lose from US tariffs. UK exports to the US are less than 2pc of GDP and those to China less than 1pc.”
Market participants also awaited the Bank of England’s policy meeting later this week.
06:02 PM GMT
EU seeks early US talks to avert Trump tariffs
The European Union wants to engage swiftly with the United States over President Donald Trump’s planned tariffs, trade chief Maros Sefcovic said today.
Mr Sefcovic said he wanted “early engagement” and was awaiting confirmations of the appointment of Trump’s picks for Commerce Secretary, financier Howard Lutnick, and US Trade Representative, Jamieson Greer.
“We are ready to engage immediately and we hope that through this early engagement, we can avoid the measures which would bring a lot of disturbance to the most important trade and investment relationship on this planet,” he told reporters.
In a sign of how tough negotiations will be, Mr Trump’s senior trade adviser Peter Navarro said Europe was hurting the United States with its value added tax on cars. EU countries apply VAT to sales of all cars, domestic and foreign.
EU officials say contacts with the new Trump administration have been limited, noting that Mr Trump’s picks for top jobs are not able to speak to foreign counterparts until they are confirmed. Ms Von der Leyen and Mr Trump have not been in touch since Trump’s inauguration.
05:48 PM GMT
Trump call with Xi Jinping cancelled after Chinese retaliation
A call between Donald Trump and the Chinese president Xi Jinping will no longer go ahead after the world’s second largest economy retaliated against tariffs imposed by the US.
Mr Trump had been scheduled to speak to Mr Xi this evening, just hours after the US President imposed fresh tariffs.
China retaliated within minutes, imposing levies on US imports and putting several companies, including Google, on notice for possible sanctions.
Mr Trump said the tariffs on China were merely “an opening salvo”. He said: “If we can’t make a deal with China, then the tariffs would be very, very substantial.”
The Wall Street Journal reported that the call was off, despite Mr Trump’s trade adviser Peter Navarro earlier claiming that the discussions were planned for Tuesday. Asked if the discussions could lead to a reprieve for Beijing similar to the delay to tariffs on Canadian and Mexican goods, Mr Navarro said: “It’s up to the boss. I never get ahead of the boss.”
He added: “Let’s see what happens with the call today.”
05:27 PM GMT
Trump and Xi reportedly not talking today
US president Donald Trump and Chinese leader Xi Jinping will not have a call today, a US official told the Wall Street Journal.
Earlier, the White House trade adviser Peter Navarro had said a conversation was planned.
05:15 PM GMT
European shares rise despite tariff worries
British stocks fell for a second straight day on Tuesday but the indexes ended well off their lows after Donald Trump said he would speak with Chinese President Xi Jinping.
The intervention sparked hopes of a de-escalation in the trade war.
The FTSE 100 ended 0.1pc lower after falling as much as 0.7pc. The domestically focussed mid-cap FTSE 250 also ended down 0.1pc.
European shares edged higher, as investors shifted their focus to quarterly earnings reports from companies such as UBS, BNP Paribas and Ferrari among others. But caution prevailed about potential US tariffs.
The pan-European Stoxx 600 index rose 0.3pc. France’s Cac 40 rose 0.7pc and Germany’s Dax rose 0.4pc.
04:55 PM GMT
Traders weight up effect of Trump on bonds
Global bond markets are unsettled this week as traders scramble to make sense of Donald Trump’s trade negotiations.
The yield on 10-year gilts - UK government bonds - rose to 4.526pc today, from 4.488pc yesterday. Meanwhile, the US equivalent dropped to 4.539pc from 4.579pc last night.
German bund yields rose today, after falling for three days.
Rabobank analysts said the market expected tariffs to have an inflationary impact on the euro zone in the short term, and a negative impact on growth, to which the European Central Bank would have to respond by cutting rates.
“The Federal Reserve can adopt a more cautious stance on the inflationary impact as it has more room to sacrifice growth without causing a recession (unlike the ECB),” they added.
The ECB cut borrowing costs for the fourth straight meeting last Thursday, a day after the Fed left rates unchanged.
Markets slightly pared bets on further ECB easing on Tuesday, after adding to bets on Monday, as investors digested the paused tariffs on Canada and Mexico.
04:27 PM GMT
China likely to boost consumer spending in response to Trump tariffs, says economist
Trump tariffs could encourage China to encourage more spending at home, an economist specialising in the Asian economy has said.
Larry Hu, head of China economics at Macquarie said that the country is being restrained it its response to Mr Trump because it has “more to lose”.
He said: “A full-blown tariff war is not in China’s interest. Instead, China is likely to respond to tariffs mainly through domestic stimulus.”
Last July, the Chinese Politburo, a top decision-making body of the ruling Communist Party, issued a statement saying that “it is necessary to focus on boosting consumption to expand domestic demand”.
Consumption accounts for around 75pc of GDP globally with the remaining quarter driven by investment, according to the World Bank. But in China, consumption accounts for just 53pc.
04:18 PM GMT
Panama ponders cancelling port deal with Hong Kong conglomerate
Panama is considering axing its port deal with Hong Kong’s CK Hutchison after repeated criticism from Donald Trump, according to a report.
It followed a visit from US secretary of state Marco Rubio. He told the Central American country that concerns over Beijing’s “control” over the canal could force the US to “take measures necessary to protect its rights”.
Mr Trump has repeatedly criticised Chinese involvement with the canal. He said: “China is running the Panama Canal that was not given to China, that was given to Panama foolishly, but they violated the agreement. And we’re going to take it back, or something very powerful is going to happen.”
Yesterday, Panama said it would pull out of China’s Belt and Road initiative in an early victory for the Trump administration.
CK Hutchison runs 53 ports in 24 countries. In the UK, it is best known as the owner of Superdrug and as the founder of mobile network Three.
03:54 PM GMT
Tariffs are good for jobs, claims Trump aide
Donald Trump’s key adviser on trade has said that the US president’s trade policies would boost American wages without causing inflation to get out of control.
Peter Navarro said: “When we put a tariff (as the biggest market in the world) on a country that is heavily export dependent, the first thing that happens is they reduce their prices.
“The second thing that happens is that supply chains move around in a way to moderate any inflationary effects. The third thing that happens is that we get more investment here rather than there, and that creates jobs and improves wages here.
“So what I can promise you is that the president’s agenda will create a golden age of prosperity, real wages will go up as they did in the first term of the Trump administration, while they went down in Biden’s, we’ll have robust GDP growth and we’ll have security here.”
But Iain Murray and Narupat Rattanakit of the Washington DC-based Competitive Enterprise Institute have said that tariffs are counterproductive for jobs and growth. They pointed to Barack Obama’s imposition of tariffs on car and lorry tyres.
They said: “The tariffs reportedly saved up to 1,200 jobs, costing $900,000 per job saved, despite average industry compensation [salaries] being $40,000 per year. However, reduced consumer spending on other goods may have caused 3,731 job losses in other sectors.”
03:41 PM GMT
Xi to hold call with Trump today
Xi Jinping will hold a call with Donald Trump today after US tariffs came into effect against the world’s second largest economy.
Peter Navarro, the White House’s senior counsellor for trade and manufacturing, said it was “up to the boss” whether China would also be able to secure a pause to Mr Trump’s tariff plans like Mexico and Canada.
He told a Politico event: “Let’s see what happens with the call today. We could have sat here yesterday and you’d have said the same thing about Mexico.”
He said Mr Trump will “proceed in a measured way” on tariffs and “it’s going to be done in a way that will benefit the American people”.
“By now, it’s trust in Trump. He does stuff,” he said.
“It looks like things are a little chaotic. It’s not.”
He added: “Tariff revenues are going to play a really important role and are going to be part of a long-term transition. Countries don’t need to pay tariffs if they’re invested.”
03:37 PM GMT
Trump pursuing a ‘fair trade agenda’, says trade adviser
Donald Trump is pursuing a “fair trade agenda”, a White House adviser on trade has claimed.
Peter Navarro told a Politico conference: “We have the lowest tariffs in the world - that’s a fact. We have the lowest non-tariff barriers in the world. That’s a fact. We run a $1 trillion a year trade deficit, which has, among other bad things besides shipping off factories and jobs [involved] transferring a million dollars of American assets to foreigners, many of whom are not our friends.
He said: “The context for the president’s fair trade agenda is simply to have fair trade.”
03:23 PM GMT
Trudeau accepted Trump is fighting ‘a drug war, not a trade war’, says advisor
Justin Trudeau made concessions to Donald Trump to avoid tariffs on Canada after “he came to understand this is a drug war, this is not a trade war”, according to one of the US president’s closest advisors.
Peter Navarro, the White House’s senior counsellor for trade and manufacturing, said the Canadian prime minister’s initial reaction to the US tariff threat was a “similar reaction to the first term”, saying “we’re gonna tariff you if you tariff us”.
Mr Navarro said the media been too quick to suggest the introduction of tariffs was about trade rather than drugs.
He told a Politico event: “The why is 75,000 Americans dying every year from deadly fentanyl that originates its precursor chemicals in China that is processed by Mexican drug cartels both in Mexico and in Canada.”
03:05 PM GMT
China ‘considers competition probe into Intel’
China is considering a new competition investigation into Intel, it has been reported, as a trade war deepens between Washington and Beijing.
China’s State Administration for Market Regulation said it has opened a competition investigation into Google, making the announcement minutes after US tariffs against the world’s second largest economy took effect.
Regulators, who announced a similar investigating into Nvidia in December, are also aiming to launch a formal probe into Intel, according to the Financial Times.
Intel shares were down as much as 4pc but have recovered to be up 0.1pc.
02:39 PM GMT
US stocks lack direction at opening bell
Wall Street’s main indexes were subdued at the open after China retaliated against tariffs announced by Donald Trump.
The Dow Jones Industrial Average rose 47.5 points, or 0.1pc, at the open to 44,469.46.
The S&P 500 rose 3.6 points, or 0.1pc, at the open to 5,998.14​, while the Nasdaq Composite rose 30.2 points, or 0.2pc, to 19,422.17.
02:31 PM GMT
Oil prices slump as tariffs threaten to disrupt supply chains
The price of oil has plunged as the tariff trade war between the US and China raised concerns about global growth and supply chains.
Brent crude oil, the international benchmark, was down 2pc towards $74 a barrel, led lower by US-produced West Texas Intermediate (WTI), which has dropped 3pc to below $71.
Charu Chanana of Saxo Markets said: “The volatility in the oil market is a reflection of the policy uncertainty that the new Trump administration brings.”
Economics said they are focused on the impact of tariffs on oil flows and supply chains in North America after the US imposed tariffs on Mexico and Canada, which account for more than 70pc of crude oil imports into the US.
The tariffs were delayed for a month last night but, as it stands, are due to come into force at the beginning of March.
David Oxley of Capital Economics said markets would see how Canada and Mexico re-route oil exports away from the US to other countries and how by how much US oil refiners have to put up prices.
He added: “Finally, from a monetary policy perspective, the key consideration will be how any disruption to oil imports and refinery activity in the US translates into upward pressure on gasoline prices.”
02:18 PM GMT
Canada halts threat to Musk after Trump pauses tariffs
Canada’s largest province has backtracked on a decision to cancel a C$100m (£55m) contract with Elon Musk’s Starlink after Donald Trump agreed to delay tariffs on the country.
Doug Ford, the premier of Ontario, had said on Monday that he was ripping up a deal with Starlink to provide satellite internet to 15,000 households, saying the province “won’t do business with people hell-bent on destroying our economy”.
It came as part of a fightback against the US in response to the 25pc tariffs ordered by Mr Trump, who counts Mr Musk as a close adviser.
Read what happened after Mr Ford said Ontario would “pause its retaliatory measures”.
02:02 PM GMT
Companies around the world warn of blow from tariffs
A growing list of companies are warning that Donald Trump’s tariffs are already impacting their bottom line.
Estee Lauder said it was more than doubling job cuts to 7,000 ahead of tariffs expected to be imposed by the US around the world.
Johnnie Walker and Guinness maker Diageo has warned that the proposed US tariffs could deal a $200m (£161m) blow to profits.
ZF, a major car supplier exporting from Mexico to the United States, said on Monday it would have little choice but to pass at least some of the cost of tariffs onto consumers via higher prices.
Global freight company DSV said today that duties threatened by Mr Trump could impact demand slightly, potentially denting its earnings this year.
01:39 PM GMT
Estee Lauder to cut 7,000 jobs as tariff threat looms
Estee Lauder has revealed it will cut as many as 7,000 jobs worldwide as part of a cost-saving overhaul as it braces for a tariff war triggered by Donald Trump.
The group behind well-known beauty brands Estee Lauder, Clinique and Jo Malone said it plans to ramp up job losses from 3,000 to between 5,800 and 7,000 as it seeks to drive savings of up to $1bn (£805m).
It said the figure was revised after taking account of some staff it is looking to retrain and redeploy in other roles.
The jobs are set to go by the end of June next year.
Estee Lauder said the move to slash more jobs and costs is partly down to concerns over possible tariff increases, which follow plans by Mr Trump to slap penalties on goods from Mexico, Canada and China.
A company spokesman said: “The expanded plan is designed to further transform the company’s operating model to fund a return to sales growth and restore a solid double-digit adjusted operating margin over the next few years, and continue to manage external volatility, such as potential tariff increases globally.”
Estee Lauder - which employs around 62,000 people worldwide - did not say what the impact might be in the UK or how many jobs are going per country.
01:21 PM GMT
Bitcoin falls as cryptocurrency loses ‘safe haven status’
Bitcoin slumped back below $100,000 as China imposed retaliatory tariffs on the US.
The world’s largest cryptocurrency was down nearly 2pc today to about $99,500.
It plunged as low as $93,000 on Monday after Donald Trump announced tariffs on Mexico, Canada and China but recovered to about $102,000 after the US president suspended tariffs.
David Morrison of Trade Nation said: “Bitcoin remains volatile. The leading crypto lost around 13pc between the start of Friday and yesterday’s low.
“Support held around $91,000 and bitcoin pushed back above $100,000 yesterday evening. But it has since drifted lower, and remained below this key level in mid-morning European trade.”
01:06 PM GMT
Wall Street lacks direction as China escalates trade war
US stock indexes were mixed after China deployed retaliatory tariffs against the world’s biggest economy.
“The events of the last few days have once again shown that anything can be expected of Trump,” Commerzbank economists wrote to clients.
“There is still a high risk that significant tariffs and disruptions in international trade will ultimately occur.”
The S&P 500 had come as close as eight points away from all-time highs on Friday before selling off as the tariffs commentary rattled global markets.
Three Fed officials warned on Monday trade tariffs come with inflation risks, with one arguing that uncertainty over the outlook for prices calls for slower interest-rate cuts than otherwise.
Traders think the next reduction in interest rates by the Federal Reserve could come as late as September, amid concerns that tariffs will stoke inflation.
In premarket trading, the Dow Jones Industrial Average was down 0.1pc, the S&P 500 was up 0.1pc and the Nasdaq 100 rose 0.2pc.
12:49 PM GMT
Lib Dems: Starmer must express total solidarity with Denmark
Sir Ed Davey urged Sir Keir Starmer to express “total solidarity” with Denmark over the Greenland row with Donald Trump when the Prime Minister meets his Danish counterpart this evening.
Sir Ed said Sir Keir should make clear to Mette Frederiksen when they meet for dinner at No 10 that the UK “has a proud history of standing with our allies when their sovereignty is threatened”.
“Donald Trump’s attempts to bully Denmark over Greenland are totally unacceptable and must be called out for what they are,” he said.
“His attempts to threaten a NATO ally with military force are dangerous and wrong, and will just embolden the likes of Putin who want to see the West divided.
“I hope Keir Starmer will express the UK’s total solidarity in his meeting with the Danish Prime Minister today. The UK has a proud history of standing with our allies when their sovereignty is threatened, and we must do the same with Denmark now.”
12:39 PM GMT
Starmer invites EU leaders to UK for talks on May 19
Sir Keir Starmer will welcome EU leaders to a summit in the UK on May 19 as they look to “further strengthen” ties between Britain and the bloc.
The summit on improving relations has been long-expected but No 10 today announced the date for the talks.
The Prime Minister’s official spokesman said: “We can confirm that the UK will welcome European leaders to the UK for the first UK-EU leaders summit on May 19.
“The Prime Minister will host the president of the European Council Antonio Costa and the president of the European Commission Ursula von der Leyen.
“The first UK-EU summit will provide an opportunity to make further progress on areas which will deliver tangible benefits for the people of the UK and the EU and further strengthen the relationship between the UK and the EU.”
12:24 PM GMT
Starmer won’t get involved in Trump Greenland row, signals No 10
Sir Keir Starmer will not use a meeting with the Danish PM to act as a mediator in the row with Donald Trump over Greenland, Downing Street has signalled.
Sir Keir is due to hold talks with Mette Frederiksen at Downing Street this evening.
Asked if Sir Keir could act as an interlocutor between Denmark and the US after Mr Trump set out his desire to take control of Greenland, the Prime Minister’s official spokesman said: “No. But the Prime Minister will be hosting Mette Frederiksen for dinner at Downing Street.
“Denmark is an important Joint Expeditionary Force member, it is a vital partner on migration and a key Nato ally.”
Asked if the UK accepted Danish sovereignty over Greenland, the spokesman said: “Of course. Greenland is a part of Denmark and constitutional arrangements in relation to that is a matter for Greenland and Denmark.”
11:59 AM GMT
FTSE 100 falls as tariffs upend markets
The FTSE 100 slipped as the mood in global markets was cautious over a possible trade war between the United States and China.
Britain’s benchmark stock index was down 0.3pc to 8,562.19, while the domestically-focused mid-cap FTSE 250 was down 0.2pc at 20,676.59.
The oil and gas sector was the worst performer, falling as much as 1.3pc after US crude prices fell by nearly 2pc as Donald Trump’s tariffs on China took effect.
The biggest individual drag on the FTSE 100 was Diageo, which dropped as much as 4.4pc, touching its lowest since November.
The spirits maker withdrew its medium-term organic sales growth target as it took steps to try and mitigate the impact of tariffs on its tequila and Canadian whisky.
Vodafone was the worst performing company, falling more than 7pc after the mobile group reported another deterioration in Germany, its biggest market, in the third quarter.
Adding to the uncertainty, the Bank of England is expected to cut interest rates on Thursday.
11:31 AM GMT
Pound steadies as Trump ‘wants to negotiate’
The pound has steadied against the dollar as analysts suggested Donald Trump “wants to negotiate” over tariffs.
Sterling was down 0.2pc to $1.242, having dropped as low as $1.225 on Monday after Donald Trump announced import taxes on Mexico, Canada and China.
The currency has steadied after Mr Trump delayed the tariffs on Mexico and Canada in return for concessions on border control and policing.
Marcus Widén, an economist at SEB, said: “That Trump wants to negotiate is clear.
“But at the same time, there is a basic idea that tariff revenues should finance tax cuts, and from that perspective, one could wonder if one can go back on tariff plans every time.”
11:17 AM GMT
Lord Frost: UK can react to Trump tariff threat in ‘best possible way’ thanks to Brexit
Brexit has put the UK in a good position to avoid Donald Trump’s trade tariffs, Lord Frost has argued.
The former Brexit minister said striking out on its own meant Britain could respond to external events “in the best possible way” while the larger and slower-moving EU could not be so quick on its feet.
Lord Frost was responding to a Sky News article which suggested the UK had almost entirely by accident ended up in a good position to deal with the threat of tariffs.
The Tory peer tweeted: “Not by accident though. I have consistently argued that being in charge of your own national affairs is the best thing for any country.
“However big you are, you can’t control external events. But you can put yourself in a position to react to them in the best possible way. That’s what we can now do after getting out of the EU.”
11:07 AM GMT
Von der Leyen: Europe ‘derisking’ relationship with China
The President of the European Commission said the EU would keep “derisking” its relationship with China amid the threat of a global trade war.
Ursula von der Leyen told the EU Ambassadors Conference in Brussels that the bloc has room to engage “constructively” with Beijing.
It comes after China announced tariffs against the US in response to levies ordered by Donald Trump, which came into effect today.
10:55 AM GMT
EU looking for ‘reliable partners’, says von der Leyen
Ursula von der Leyen said the EU would protect its own interests and was looking for “reliable partners” amid the threat of tariffs from Donald Trump.
The US president said at the weekend that the bloc “definitely” faces future tariffs from his administration, after new levies against Chinese goods came into force today.
Ms von der Leyen, the President of the European Commission, said the EU is ready for tough negotiations with the US, adding that businesses on both sides of the Pond depend on the Transatlantic relationship.
She said the primary goal had to be to avoid a race to the bottom.
She said: “Our first priority is now to work on the many areas where our interests converge, from critical supply chains to emerging technologies.
“To work out any grievances and to set the foundations for a stronger partnership.
“We will be open and pragmatic in how to achieve that. But we will make it equally clear that we will always protect our own interests – however and whenever that is needed.”
10:48 AM GMT
Europe must stay ‘level-headed in hot-headed world’, says von der Leyen
Ursula von der Leyen said the EU has the “strongest of ties” with the US but warned “a lot is at stake on both sides” as the bloc faces the threat of tariffs from Donald Trump.
Addressing the EU Ambassadors Conference in Brussels, the President of the European Commission said the world is “in the era of hyper-competitive and hyper-transactional geopolitics”.
She said: “In this hot-headed world, Europe’s best approach is to remain level-headed”.
She added: “A deal with us comes with no hidden strings attached.”
10:36 AM GMT
Gas prices fall as China hits US energy industry
The price of natural gas fell for the first time in six days after China announced tariffs impacting the US energy sector.
Dutch front-month futures (TTF), the benchmark for Europe, were down 2.9pc as China said it would place a 15pc tariff on US liquefied natural gas (LNG) products.
Donald Trump’s additional 10pc tariffs on all Chinese goods came into effect just after 5am UK time.
Arne Lohmann Rasmussen, chief analyst at Global Risk Management, said: “On the margin it should push down LNG prices and therefore also TTF-prices in the EU as it becomes more attractive to divert LNG vessels to Europe instead of China.”
10:27 AM GMT
UK promises ‘ruthless pragmatism’ in pursuit of closer EU ties
The UK will approach improving relations with the EU with “ruthless pragmatism”, Nick Thomas-Symonds said today.
The minister for EU relations said increased cooperation between the two sides will create a “stronger” UK and EU.
He told the EU-UK Forum Annual Conference in Brussels:
The time for ideologically driven division is over. The time for ruthless pragmatism is now.
It is through a new partnership between the UK and the EU that we will deliver for the people of the United Kingdom and for people across the continent.
The future of the EU and the UK lies beyond the status quo, reaching forward to deliver benefits for all our people to share.
So let us rise to our shared challenges and grasp this opportunity because together we will create a stronger UK and we will create a stronger Europe.
10:20 AM GMT
Starmer-Von der Leyen summit will deliver ‘balanced, yet ambitious’ deal
A summit between Sir Keir Starmer and Ursula von der Leyen will help to deliver a “balanced, yet ambitious” relationship between the UK and the EU, according to Nick Thomas-Symonds.
The minister for EU relations said: “On prosperity, if we want to grow our economies and boost our living standards then we need to reduce barriers to UK and EU trade.”
He told the EU-UK Forum Annual Conference in Brussels that the two sides were already “making progress” thanks to “greater cooperation”.
He said a meeting between the Prime Minister and the president of the European Commission is due to take place in May “where we hope we can deliver a balanced, yet ambitious outcome to benefit all our citizens”.
10:14 AM GMT
Minister: UK-EU relationship can be upgraded
The relationship between the UK and the EU can be “upgraded”, according to Cabinet Office minister Nick Thomas-Symonds, who spoke in Brussels as the US and China announced tariffs against each other.
The minister for EU relations told the EU-UK Forum Annual Conference in Brussels: “Even though we voted to leave the EU, our role as a key ally and trade partner remains.”
He added: “We see real opportunities to improve the status quo.”
Mr Thomas-Symonds said that there remained “many unnecessary barriers to trade and investment” and he agreed with the assessment that “following the election of new governments in the EU and UK there is a clear opportunity to upgrade the relationship to deliver for businesses and citizens”.
10:10 AM GMT
UK and EU have mutual goal of better relationship, says minister
Nick Thomas-Symonds, the minister for EU relations, said Britain and Brussels have a “mutual goal” of reaching a “better EU-UK relationship”.
The minister told the EU-UK Forum Annual Conference in Brussels this morning that the two sides have “many mutually aligned interests and challenges”.
“We want increased prosperity, we want to strengthen our security and we want our citizens to be safe,” he said.
Mr Thomas-Symonds said that “low growth is not the destiny of our economies” as he urged increased cooperation.
10:08 AM GMT
EU Brexit chief ‘very optimistic’ relationship with UK will grow
Maroš Šefčovič, executive vice-president of the European Commission, said the EU and UK are seeking “closer and deeper cooperation”.
The EU’s lead post-Brexit negotiator made the comments as he addressed the EU-UK Forum Annual Conference in Brussels this morning.
He said: “As we work towards the first EU-UK summit later this year we are engaged in identifying areas and elements for closer and deeper cooperation.
“In doing so we will of course remain fully respectful of the limits the UK has set in particular when it comes to economic cooperation.”
Mr Šefčovič said he was “very optimistic that the strong mutually beneficial relationship between the EU and the UK will continue to grow”.
09:38 AM GMT
Trump’s tariffs ‘are themselves retaliatory’
Donald Trump has done more “to bring the world back from abyss” in his first 10 days in office than other politicians have done in years, according to Telegraph readers.
Read why others think “Trump has just been trumped” and you can join the debate in our comments section below:
09:21 AM GMT
Google faces China competition investigation
China has launched an investigation into Google hours after Donald Trump’s tariffs on the country came into force.
The State Administration for Market Regulation said it would investigate allegations the US search giant has broken China’s anti-monopoly laws.
“Because Google is suspected of violating the anti-monopoly law of the People’s Republic of China, the State Administration for Market Regulation has initiated an investigation into Google in accordance with the law,” it said in a one-sentence announcement.
Google has been blocked in China since 2010 and does not run other services such as its Android Play Store or YouTube there.
Although it does have operations in the country allowing Chinese businesses to advertise to the rest of the world, the timing and nature of the investigation could lead to suggestions the investigation is in response to US tariffs on China.
It came as Chinese authorities announced their own tariffs on coal, oil and vehicles from the US, and added the clothing company PVH and biotech firm Illumina to its “unreliable entity” list, meaning Chinese firms are restricted in dealing with them.
Mr Trump has previously hit out at foreign regulators cracking down on Google, criticising the EU in 2018 for fining “one of our great companies”.
Google was contacted for comment.
09:10 AM GMT
Trump views tariffs as ‘answer to every problem’
Donald Trump “honestly believes that tariffs are the right answer to almost every problem”, a former US ambassador to the EU has said.
Anthony Gardner also said the US president wrongly believes that tariffs do not have any downside.
“He thinks it is a cost-free way to get what he wants,” he told Sky News.
But he added: “The idea that tariffs are this wonder drug that can do everything is misplaced.”
08:59 AM GMT
Stocks fall as tariffs leave ‘lingering uncertainty’
European stocks have continued to fall as the threat of tariffs from Donald Trump looms.
The FTSE 100 in London, the Cac 40 in Paris and Dax in Frankfurt were all lower, although losses were not as sharp as those seen on Monday.
Mr Trump agreed delays to tariffs with Mexico and Canada last night in exchange for concessions on border control and drug policing.
Jim Reid, an analyst at Deutsche Bank, said: “Some immediate concessions on the border issues have avoided immediate severe escalation, but Trump’s comments suggest that he will look to use the delay to leverage broader economic concessions.
“Indeed, with tariffs being arguably the strongest economic tool that is almost fully at the President’s discretion, we should surely expect that these will continue to be used to both create negotiating leverage and pursue different objectives such as supply security, revenue generation and trade deficit reduction.
“And some of these, notably using tariff revenue to help fund offset tax cuts, would require actual implementation of new tariffs. So there are reasons to expect lingering uncertainty in markets, and we are seeing this to some extent.”
08:47 AM GMT
Ex-US ambassador to EU: UK not in Trump’s tariffs bullseye
Anthony Gardner, a former US ambassador to the EU, said the UK was currently not the target of Donald Trump’s trade tariffs.
He said Britain was “out of the bullseye” but warned it would be “very tough” in the long term for the UK to keep the US president on side.
Mr Gardner told Sky News: “So far the UK is out of the bullseye which is good news but it is a very tough line to walk.
“First of all because leaving the EU means the UK is more exposed, the EU has greater deterrent power, so to speak, in terms of retaliatory punch and also a very difficult line to walk because Trump will probably want the UK to do things that it may not want to do, i.e. to move away from EU regulation and to move closer to US regulation.
“So it is a very tough thing to do. So far it looks like the UK has a better case to make to Donald Trump not to impose tariffs because it is unclear whether the UK runs a [trade] surplus or a deficit because each side has its own calculations in that regard.
“But very tough long term to pull this off.”
08:42 AM GMT
China tariffs to take effect next week
To recap, Beijing has announced a flurry of retaliatory countermeasures to Donald Trump’s additional 10pc tariffs on Chinese goods entering the US.
China will impose a 15pc tariff on coal and liquefied natural gas products as well as a 10pc tariff on crude oil, agricultural machinery and large-engine cars imported from the US.
The tariffs are scheduled to go into effect next Monday.
Beijing also launched a competition probe into Google and placed two American companies on an unreliable entities list: PVH Group, which owns Calvin Klein and Tommy Hilfiger, and Illumina, a biotechnology company with offices in China.
The listing bars them from engaging in China-related import or export activities and from making new investments in the country.
08:30 AM GMT
Asian shares rebound ahead of talks between Trump and Xi
Asian shares climbed despite the tariff war between the US and China.
The Hang Seng Index in Hong Kong grew 2.6pc to 20,741.66 while Japan’s benchmark Nikkei 225 closed up 0.7pc to 38,798.37.
South Korea’s Kospi grew 1.1pc to 2,481.69 but Australia’s S&P/ASX 200 declined 0.1pc to 8,374.00.
The White House earlier said Donald Trump would speak with Chinese President Xi Jinping as soon as this week, sparking hopes that a deal could be reached that could avert a broader trade war.
Earlier, Asian shares had risen following news that Canada and Mexico had negotiated with the US for a one-month reprieve on 25pc tariffs.
08:16 AM GMT
‘Poor negotiator’ Starmer does not have skills to take on Trump
Sir Keir Starmer is a “poor negotiator” and does not have the skills to strike a good trade deal with Donald Trump, a Tory frontbencher has claimed.
Richard Fuller, the shadow chief secretary to the Treasury, questioned whether Sir Keir would be able to deliver for Britain in a trade negotiation with the US president.
He told GB News: “There are lots of things where we can have agreement with the US but there are some important points… where there is a difference and we need the Prime Minister to be able to negotiate those with the US administration.
“I’m afraid so far the Prime Minister has shown he is a very poor negotiator, he doesn’t have the skills, and he is up against President Trump who is a good negotiator, you can see that every day, even just today with the changes that Mexico has made and the roll back on tariffs on Mexico because they got the point.
“With Sir Keir Starmer we have got to ask ourselves, do we have someone in charge who has our nation’s interests at his heart and is a good negotiator to make sure those interests can get the best results for Britain?”
08:04 AM GMT
FTSE 100 falls as China retaliates to US tariffs
UK stocks declined at the open after China deepened the global trade war by announcing its tit-for-tat tariffs against the US.
The FTSE 100 fell 0.3pc to 8,562.14 while the midcap FTSE 250 dropped 0.3pc to 20,648.87.
Both indexes ended Monday more than 1pc lower as traders reacted to Donald Trump’s tariffs against China, Canada and Mexico.
08:00 AM GMT
Starmer’s EU dinner sent wrong signal to Trump, Tories warn
The Tories claimed Sir Keir Starmer had sent the wrong signal to Donald Trump by choosing to attend a European Council dinner on the same day the US president warned of potential tariffs against the EU.
Richard Fuller, the shadow chief secretary to the Treasury, suggested Sir Keir “popping over for dinner” in Brussels last night was ill-advised.
Mr Trump said the UK was “out of line” in its trade with the US but he believed “that one can be worked out”.
However, he said the EU was “really out of line” and “it’s an atrocity what they’ve done”.
Mr Fuller told GB News:
He [Sir Keir] should be prioritising British interests and that was the point of Brexit five years ago which is our leaders need to focus on what is in our best interests.
If that is doing a trade deal with the United States, he should put his energies there, if it is about doing something with the EU that furthers our interests then he should do that.
Him popping over for dinner to the EU the same day as president Trump has himself said there is a difference between the UK and the EU about how the US will look at future trade relations doesn’t send a good signal to President Trump.
07:46 AM GMT
Farage: UK should target US, not diminishing EU, for more trade
Nigel Farage suggested the UK should prioritise improving trade links with the US rather than the EU after Sir Keir Starmer’s trip to Brussels on Monday.
The Reform UK leader said the EU was “diminishing every single year” and the UK should “think bigger” in terms of where its trading focus should be.
Sir Keir attended a European Council summit as a guest and sought closer defence and security ties with the bloc as part of a wider “reset”.
Mr Farage told the BBC Radio 4 Today programme: “We are a global trading nation. The European Union is diminishing every single year and I keep hearing this stuff about what an important trading partner it is. Every single year that goes by it becomes smaller and smaller and smaller.”
Mr Farage said the UK “can do a free trade deal with the USA, we can look across the rest of the world”.
“Yes of course the EU is an important market, no one is denying that for a moment,” he said. “But with every year that goes by it becomes less important. Let’s think bigger.”
07:38 AM GMT
Guinness-maker Diageo removes forecasts amid tariff uncertainty
The maker of Guinness has scrapped its sales target as it grapples with the threat of tariffs from Donald Trump’s administration.
Diageo, which is also behind Johnnie Walker whisky and Smirnoff vodka, said it had removed its medium-term forecasts of 5pc to 7pc organic sales growth, blaming “current macroeconomic and geopolitical uncertainty”.
Chief executive Debra Crew said the company had “anticipated and planned for a number of potential scenarios regarding tariffs in recent months”.
She warned that implementation of the levies could impact the company’s “momentum” after it reported organic net sales returned to growth and increased by $101m (£81.4m) or 1pc.
She said: “It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation.
“We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.”
Last month Diageo denied reports it is exploring an £8bn sale of the Guinness brand as the Irish stout enjoys a surge of popularity.
07:19 AM GMT
Shein’s £50bn London float at risk from Trump tariffs
Shein’s planned £50bn London listing has been cast into doubt after Donald Trump moved to close a tax loophole central to the fast fashion company’s business model.
President Trump over the weekend promised to scrap the de minimis exemption for small packages worth less than $800 (£645) that are shipped from China, Canada and Mexico to the US.
The rules mean small packages mailed directly to US home addresses currently avoid import taxes.
Read how Mr Trump’s promise to close the tax loophole casts doubt over fast fashion retailer’s plans to list on stock market.
07:14 AM GMT
Global currencies tumble against dollar as tariffs take effect
The dollar has strengthened against global currencies after Donald Trump’s tariffs against China came into effect.
The US currency was 0.7pc stronger against the pound at $1.23, which had recovered from the sharp sell-off on Monday.
It was a similar story for the euro, with the dollar was up 1.1pc to $1.024 as the threat of tariffs hang over the EU.
The dollar is strengthening amid expectations that tariffs will cause inflation, which in turn would likely mean the US Federal Reserve cannot lower interest rates as quickly as the market previously expected.
Shane Oliver chief economist at AMP in Sydney said: “(The) trade war story remains alive and well and this has a lot further to play out.”
The Canadian dollar and Mexican peso weakened despite earlier winning a reprieve on their own US tariffs.
The Chinese yuan edged down about 0.3pc to 7.3213 per dollar in offshore trading, although that was well back from the record trough reached overnight at 7.3765 yuan.
The Australian dollar, which often acts as a liquid proxy for the yuan, sank 0.7pc to $0.6186, but that was well above Monday’s low of $0.60886, the weakest level in nearly five months.
06:43 AM GMT
China stocks surge despite tariff blow
Chinese stocks listed in Hong Kong shrugged off the new trade war between Washington and Beijing.
The benchmark Hang Seng index added 2pc, with its Hang Seng China Enterprises index up 2.2pc, off the three-month high it hit earlier in the day, and the Hang Seng Tech index surged 3.6pc.
The jumps came as investors loaded up on artificial intelligence and electric vehicle shares.
AI-related stocks led the rally as investors continued to pile up wagers on home-grown firms after startup DeepSeek released a large language model at a cheap cost.
China’s top chipmaker SMIC was also trading near the record high it hit early in the day, and peer Hua Hong Semiconductor advanced 8.7pc.
Capital Economics said the additional 10pc tariff that Donald Trump has applied on Chinese goods will have a relatively modest impact on China’s economy, especially if the People’s Bank of China allows the yuan to adjust.
However, the consultancy predicted the trade war with the US will be protracted.
06:21 AM GMT
Global trade war concerns grow
China’s tit-for-tat tariffs on the US have reignited concerns about a widening global trade war, which had receded somewhat overnight following Mr Trump’s last-minute deals with Canada and Mexico.
“Unlike Canada and Mexico, it is clearly harder for the US and China to agree on what Trump demands economically and politically,” said Gary Ng, senior economist at Natixis.
“The previous market optimism on a quick deal still looks uncertain. Even if the two countries can agree on some issues, it is possible to see tariffs being used as a recurrent tool, which can be a key source of market volatility this year.”
05:57 AM GMT
Stocks and dollar on rollercoaster as China hits back
US stock futures slipped, the dollar jumped and Hong Kong shares toppled from two-month highs on Tuesday after the US imposed tariffs on Chinese imports and China quickly responded by imposing counter levies.
S&P 500 futures, which had bounced in relief that Mexico and Canada had cut deals to delay a tariff hit, swung to a 0.4pc loss.
European futures slipped 0.2pc and the euro skidded beneath $1.02 on nerves Europe may be next.
Hong Kong’s Hang Seng pared gains of more than 2pc to trade about 1.8pc higher for the day.
05:37 AM GMT
China imposes counter tariffs on US
China will implement counter tariffs against the US on multiple products from next Monday.
China’s Ministry of Commerce announced on Tuesday it would implement a 15pc tariff on coal and liquified natural gas products, as well as a 10pc tariff on crude oil, agricultural machinery and large-displacement cars.
05:32 AM GMT
US tariffs on China take effect
The United States’ tariffs of 10pc on Chinese imports began on Tuesday at 12.01am ET on Tuesday (5.01am GMT).
While there are hopes of a reprieve, a White House spokesperson said Donald Trump would not be speaking with Chinese President Xi Jinping until later in the week.
It comes as Mr Trump warned he might increase tariffs on China further unless Beijing stemmed the flow of fentanyl, a deadly opioid, into the US.
“China hopefully is going to stop sending us fentanyl, and if they’re not, the tariffs are going to go substantially higher,” he said on Monday.
China has called fentanyl America’s problem and said it would challenge the tariffs at the World Trade Organization and take other countermeasures, but also left the door open for talks.
05:18 AM GMT
Markets likely to retain gains after tariff delays
Analysts said that markets on Tuesday were driven by the postponement of tariffs on countries like Canada and Mexico.
Mr Trump last week imposed a tariff of 10pc on Chinese imports that came into effect at 12.01am. ET on Tuesday (5.01am GMT).
“The sharp pullback in the US dollar, along with tariff relief hopes, are likely to see markets retain their gains, barring any unexpected souring in US-China talks ahead,” said Yeap Jun Rong, market strategist at IG in a note.
Mr Yeap said that the postponement of the tariffs provides immediate relief for risk sentiments and “underscores President Trump’s willingness to negotiate, potentially with tariff moves as bargaining chips rather than firm policy decisions”.
05:09 AM GMT
5 things to start your day
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Reeves to review £700m tech tax as trade war looms | Pressure to reassess levy on US tech giants grows as Britain seeks to avoid looming tariffs
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Jaguar Land Rover EU factory move backfires as tariffs loom | Carmaker risks getting caught in US trade war after moving production from Solihull to Slovakia in 2018
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US hedge fund tycoon defeated in bid to take over City funds | Investors in two Baillie Gifford trusts vote against Boaz Weinstein’s boardroom coup
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Andrew Orlowski: Radical reform is needed to grasp this technological revolution | Britain’s entrenched prejudice against engineering and manufacturing must be rewired
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Ben Marlow: The railway blob has taken virtue-signalling to extremes | Rather than fix abysmal service failures, Network Rail is putting on a spectacular display of navel-gazing nonsense
05:08 AM GMT
What happened overnight
On Wall Street, the Dow Jones Industrial Average fell 0.3pc, to 44,421.91, the S&P 500 fell 0.8pc, to 5,994.57, and the Nasdaq Composite fell 1.20pc, to 19,391.96.
In the bond market, yields on benchmark 10-year US Treasury notes dropped as investors flocked to the safety of US government debt. They fell to 4.533pc, from 4.567pc late on Friday.
Asian shares climbed on Tuesday after President Donald Trump said tariffs on Mexico and Canada would be delayed for a month.
Stocks across Asia were up, with the Hang Seng Index in Hong Kong growing 2.10pc to 20,642.58.
Japan’s benchmark Nikkei 225 increased 1.61pc to 39,140.41, while South Korea’s Kospi ticked up 1.63pc to 2,493.99 and Australia’s S&P/ASX 200 rose 0.13pc to 8,390.20.
05:02 AM GMT
Good morning
Thanks for joining us.
US President Donald Trump has delayed the start of tariffs on Mexico and Canada for a month, but China has been hit with a 10pc tariff on goods.
Canada, China and Mexico are the United States’ three biggest trading partners.
Wall Street’s three main indices fell sharply in early deals, but clawed back ground after Mr Trump’s announcement of the Mexico deal.
Follow our live blog for the latest today.