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Donald Trump has threatened to impose “unfairness” tariffs on other countries as he singled out the EU as being a “terrible abuser”.
Suggesting that some of these tariffs could come within days, he said: “Our country has been ripped off by everybody. That stops now. I had it stopped in my first term and we’re going to really stop it now.”
He claimed that the US “has be absolutely ripped off by every country in the world - Canada, Mexico, you [can] just go way down the line.”
“The EU has been a terrible abuser of this country. The EU was formulated to take advantage of the United States and they have taken advantage. They’re not taking advantage while I’m in charge,” he said. “America will be very strong.”
He is planning to impose a single new tariff rate for each country, which will collectively reflect all the tariffs and non-tariff barriers imposed on the US.
The move comes after Mr Trump pledged to impose “reciprocal” tariffs globally.
Speaking in the Oval Office, he criticised America’s past trade policies, including the North America Free Trade Agreement (Nafta) for causing 90,000 US factories to close since the 1990s. He pledged to bring many of those factories back and said that countries were now planning to cut tariffs on US goods as a result of his tax policies.
But in a swipe at his predecessor’s legacy, Mr Trump claimed that the US Chips Act, which was introduced to subsidise US chip manufacturing, is “a waste of money”.
Earlier this afternoon, his trade adviser Peter Navarro told CNBC that “unfairness” tariffs would involve a single tariff rate being added to each country’s exports to the US, based on an assessment of all their barriers on US goods. He said: “The concept here is one number-one number that reflects, in the aggregate, the unfairness embedded in the higher tariffs and non-tariff barriers that countries impose on us.”
The three main Wall Street indexes are falling this afternoon, with the S&P 500 down 1.2pc, the Nasdaq down 1.6pc and the Dow Jones down 0.9pc.
Read the latest updates below.
06:26 PM GMT
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06:14 PM GMT
US to hold hearing on China’s efforts to boost chip industry
The US Trade Representative’s Office will hear evidence on Tuesday on Chinese-made “legacy” chips. The investigation could lead to higher US tariffs on chips from China that power everyday goods from car to washing machines to telecoms gear.
The probe, which was started under President Joe Biden in December, aims to protect American and other chip producers from China’s massive state-driven build-up of its chip industry. A 50pc US tariff on Chinese chips started on Jan 1.
05:59 PM GMT
Fed expects ‘bumpy’ path to inflation target
Jerome Powell, the US Fed chairman, has said that the path to 2pc inflation will be “bumpy”.
Speaking in New York, he said: “Inflation has come down a long way from its mid-2022 peak above 7pc without a sharp increase in unemployment - a historically unusual and most welcome outcome.
“While progress in reducing inflation has been broad based, recent readings remain somewhat above our 2pc objective.
“The path to sustainably returning inflation to our target has been bumpy, and we expect that to continue.”
He added: “Beyond the next year or so, however, most measures of longer-term expectations remain stable and consistent with our 2pc inflation goal.”
05:38 PM GMT
Powell says Fed waiting for more clarity about Trump’s policies
The US central bank will be in no rush to cut interest rates while it waits for more clarity on how the policies of the new Trump administration affect the economy, the chairman of the Federal Reserve has said.
Jerome Powell said: “The new administration is in the process of implementing significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation. Uncertainty around the changes and their likely effects remains high.
“We are focused on separating the signal from the noise as the outlook evolves. We do not need to be in a hurry, and are well-positioned to wait for greater clarity.”
05:23 PM GMT
Trump rails against Canadian tariffs on US dairy and timber
Donald Trump has railed against what he called tremendously high Canadian tariffs on dairy and timber, and said his administration could impose reciprocal tariffs on Canadian products as early as Friday.
“Canada has been ripping us off on for years on tariffs for lumber and for dairy products,” he told reporters in the Oval Office. “They’ll be met with the exact same tariffs, unless they drop it, and ... we may do it as early as today or we’ll wait ‘til Monday or Tuesday.”
He said: “It’s not fair. Never has been fair, and they’ve treated our farmers badly.”
05:19 PM GMT
Biden’s Chips Act ‘a waste of money’
Donald Trump has said that the US Chips Act, which was introduced to subsidise chip manufacturing under his predecessor, is “a waste of money”.
05:19 PM GMT
Trump promises to bring back lots of factories back
Donald Trump has said that he is planning to bring back many of the 90,000 factories that were lost in the US since Nafta was introduced under the Clinton administration.
05:13 PM GMT
India has agreed to cut tariffs ‘way down’, Trump says
Donald Trump has said that countries are planning to cut tariffs as a result of his policies with India promising to bring them “way down”.
05:12 PM GMT
FTSE 100 slumps after Trump’s erratic tariff policies
The FTSE 100 failed to make up any ground on Friday after a week of losses fuelled by US President Donald Trump’s chaotic changes of policy around trade tariffs.
London’s blue-chip index sank three points to finish the day at 8,680, roughly flat.
The Friday performance draws to an end a momentous week for global stock markets, in which investors have tried to assess the impact of US tariffs on Canada, Mexico and China.
All the while, Mr Trump has made policy, then reversed it, including temporarily halting tariffs on Canada and Mexico on Thursday for the second time in as many months.
Wall Street’s S&P 500 also suffered a week of losses, down another 1.1pc as UK markets were closing, though it was also affected by US jobs data released earlier on Friday. The Dow Jones was down 0.8pc.
When asked about the effect his tariffs were having on markets, Mr Trump said: “Well, a lot of them are globalist countries and companies that won’t be doing as well. Because we’re taking back things that have been taken from us many years ago.”
05:11 PM GMT
Taiwan ‘stole’ chip business
Donald Trump has said that Taiwan ‘stole’ America’s chip business. He paid tribute to Andy Grove, the former Intel boss, but said that America has failed to keep the business since he died.
05:07 PM GMT
Trump: EU a ‘terrible abuser’ on trade
Donald Trump has launched a verbal attack on other countries’ tariffs, accusing the EU of being a ‘terrible abuser’.
He said that countries were now planning to cut tariffs on US goods as a result of his tax policies.
04:58 PM GMT
US planning deal with India over tariffs, weapons and the dollar
Howard Lutnick, the US Treasury secretary, wants a major trade deal with India that would also veer into arms sales and a proposal to take on the dollar.
In comments reported by Bloomberg, Mr Lutnick said: “The United States is interested in doing a macro, large scale, broad-based trade agreement with India that takes everything into account, and that I think can be done.
“Let’s bring India’s tariff policy towards America down, and America will invite India in to have really an extraordinary opportunity and relationship with us.”
He added: “India has historically bought significant amounts of its military from Russia, and we think that is something that needs to end.”
He said that India’s high tariffs and involvement in a project to reduce the use of the US dollar in trade “don’t create the love and affection that we really deeply feel toward India.”
“We would like those things to end, and we would like trade to be more fair,” he said.
India is part of the Brics grouping of counties which are seen as favouring replacing the dollar.
However, Subrahmanyam Jaishankar, India’s external affairs minister, told an event in London this week: “We have never had a problem with the dollar. Our relations with the US are probably at the best that they have ever been.”
04:47 PM GMT
Eurozone bonds regain footing after biggest two-day drop since 1970s
A sharp sell-off in eurozone government bonds abated today, after the biggest two-day fall in German Bunds since the 1970s.
The sell-off came on the back of Germany’s plans to completely rewrite its fiscal rules.
Germany’s 10-year bond yield, the benchmark for the euro zone bloc, dipped to 2.835pc from 2.837pc at end of trading yesterday. Yields move in the opposite direction to bond prices.
“A memorable week is drawing to a close, allowing markets to take stock of the seminal changes in German fiscal politics as well as tariffs and the European Central Bank,” said Michael Leister, head of interest rates strategy at Commerzbank.
The yield soared on Wednesday, when Germany’s plan to change its fiscal rules was announced, the biggest one-day rise since the late 1990s.
It then rose again Thursday after the ECB cut rates but said it was watching European spending plans closely, making the two-day sell-off the biggest since 1974.
04:40 PM GMT
Trump says tariffs on Canada and Mexico may rise over time
Donald Trump has said tariffs affecting Canada and Mexico could go up in the future, in an interview that was broadcast this afternoon. It came a day after he provided temporary reprieve from some steep levies hitting America’s neighbours.
US tariffs of up to 25pc targeting Canada and Mexico took effect early this week, spooking markets, but Mr Trump yesterday halted levies for certain goods until April 2.
The pause applies to imports covered by the United States-Mexico-Canada Agreement that Mr Trump signed in his first term.
Asked in a Fox Business interview if companies might get more clarity on his trade policies, Mr Trump said: “I think so. But, you know, the tariffs could go up as time goes by.”
“I don’t know if it’s predictability,” he added.
He reiterated plans for reciprocal levies as soon as April 2, saying: “What they charge us, we charge them. It’s a big deal.”
On Friday, White House senior counsellor Peter Navarro told CNBC in a separate interview he rejected the idea that there is uncertainty surrounding Trump’s trade policies.
“The uncertainty is created by the fact that people don’t take President Trump at his word,” he said.
On Canada and Mexico, Navarro added: “It’s a negotiation, and we’re winning.”
04:32 PM GMT
Trump to host crypto elite at White House
Cryptocurrency industry elite are set to meet with Donald Trump at the White House today to discuss how the the US will enact Trump’s vision of making the country the “crypto capital of the world”.
Crypto investors were major supporters of Mr Trump’s presidential campaign, contributing millions of dollars toward his victory in hopes of ending the Biden administration’s deep scepticism toward digital currencies.
“We will have our conversation about rolling back Biden’s war on crypto regulations,” a senior White House official told reporters.
Mr Trump now has significant financial ties to the sector, partnering with exchange platform World Liberty Financial and launching the “Trump” memecoin in January.
First Lady Melania Trump announced a meme coin of her own, $MELANIA, one day before the inauguration.
On Thursday, Mr Trump signed an executive order establishing a “strategic Bitcoin reserve”, a move Mr Sacks said made good on a campaign promise to an increasingly important component of his coalition.
Summit guests include twins Cameron and Tyler Winklevoss, founders of crypto platform Gemini.
03:58 PM GMT
Trump’s ‘bewildering’ policies continue to make investors nervous
Donald Trump’s “bewildering” tariff policies continue to make investors nervous after hedge funds ditched stocks at their fastest rate ever.
Axel Rudolph, senior technical analyst at online trading platform IG, said: “The uncertainty created by the US administration with regards to tariffs is starting to hurt investor confidence with US stock indices hitting five-month lows.
“President Trump’s bewildering tariff policy is creating heightened uncertainty and investor concern with hedge funds having liquidated global equity positions at the fastest rate on record.
“While US indices are heading toward their third straight week of losses and are trading in five-month lows, German and French stock indices [this week] hit new record highs.
“The euro is set for its best week in 16 years amid high hopes of a German €500bn stimulus package while the US dollar is on track for its fifth consecutive week of losses.”
03:52 PM GMT
Trump mulls restrictions on China’s DeepSeek
The White House is considering plans to restrict use of China’s AI service DeepSeek and ban it on US government devices, the Wall Street Journal has reported.
The newspaper said that the Trump administration had national-security concerns about use of the chatbot with government data. Officials are reportedly worried about DeepSeek storing data on servers in China and how the data may be used.
The Telegraph has approached DeepSeek for comment.
03:44 PM GMT
Trump planning single reciprocal tariff per country, says trade adviser
Donald Trump is reportedly planning to apply a single new tariff for each country as he gears up to apply so-called reciprocal tariffs on America’s trading partners.
Reuters has reported that Peter Navarro, Mr Trump’s trade and manufacturing adviser, has said that there will be one new rate applied per country to reflect all that nation’s tariff and non-tariff barriers.
“The concept here is one number-one number that reflects, in the aggregate, the unfairness embedded in the higher tariffs and non-tariff barriers that countries impose on us,” Mr Navarro said, adding that tariff actions will be at the industry level as well as country-specific investigations.
It had been expected that the tariffs might be applied on product-by-product basis.
03:33 PM GMT
Gas prices jump as Trump threatens Russia with sanctions
The price of wholesale gas spiked after Donald Trump said he could impose sanctions on Russia.
The benchmark European contract jumped as much as 7.1pc having earlier been as much as 4.8pc lower today.
It comes after the US president threatened to impose banking sanctions or tariffs on Moscow as he pushes for a peace deal over the war in Ukraine.
It’s fair to say it’s been a lively week on the markets so I’m off for a lie down. There’s still plenty of action due this evening so I’ll leave you in the hands of Alex Singleton.
03:24 PM GMT
US stocks mixed ahead of Powell speech
Wall Street’s main indexes ticked up in choppy trading as assessed the jobs report and awaited comments from Federal Reserve Chair Jerome Powell later.
The Dow Jones Industrial Average was down 0.1pc but the benchmark S&P 500 gained 0.3pc and the Nasdaq Composite was up 0.1pc.
Energy led sectoral gains on the S&P 500 with a 1.8pc rise, tracking a 2pc increase in oil prices, which have been hit hard this week.
Later Jerome Powell will give a speech where he may offer more clarity on the central bank’s latest policy towards interest rates in light of the turmoil caused by US tariff plans.
Broadcom rose 7pc after the chipmaker calmed investor worries about artificial intelligence infrastructure demand with a strong second-quarter forecast.
The latest official employment figures showed job growth picked up in February from the previous month. However, the growth missed economists’ expectations, adding to worries about the economy’s resilience.
Peter Cardillo, chief market economist at Spartan Capital Securities said: “This is not an overly weak report and it’s not overly strong.
“It is within the average job creations over the past several months and that suggests that the economy is still somewhat resilient, although challenges persist.”
02:54 PM GMT
EU preparing to give Ukraine access to Single Market in peace deal
Ursula von der Leyen is ready to push EU rules to “breaking point” to give Ukraine privileged access to the bloc’s Single Market as part of a final peace deal, The Telegraph can reveal.
Lucrative access to a market of 449 million consumers would bring a much-needed economic boost to help rebuild the war-torn country, which is a candidate country to join the EU.
The plan would see Brussels choose which sectors to open up to Kyiv and which to keep closed.
During the Brexit negotiations, Brussels warned Britain against trying to “cherry pick” access to the Single Market without taking on the full obligations of EU membership, such as freedom of movement.
02:40 PM GMT
US stock fall as Musk swings axe on federal jobs
Wall Street’s main indexes opened lower after data showed less-than-expected improvement in job growth in February and the first signs of the impact of Elon Musk’s efficiency drive on the federal government.
The Dow Jones Industrial Average fell 76.0 points, or 0.2pc, at the open to 42,503.07.
The S&P 500 fell 12.5 points, or 0.2pc, to 5,726.01​, while the Nasdaq Composite dropped 39.4 points, or 0.2pc, to 18,029.85.
02:29 PM GMT
Pound hits four-month high after US jobs figures
The pound climbed back towards a fresh four-month high after the weaker-than-expected improvement in job growth in February.
Sterling rose as much as 0.4pc today to $1.295 and nearest those levels again after official figures showed the US economy added 151,000 jobs in February.
It was up from 125,000 in the previous month but weaker than the 160,000 rise that had been expected by economists.
Joe Gaffoglio, chief executive of Mutual Of America Capital Management said: “Deteriorating indicators like hiring intentions, new job listings and temporary staffing suggest a potential slowdown in employment growth.
“Even with these conditions, we don’t expect the Fed to cut rates at its next meeting or even in the next few months.”
The dollar weakened as traders backed away from betting on the Federal Reserve lowering interest rates in May and added to expectations that the central bank will lower borrowing costs for the first time in June, according to data compiled by LSEG.
02:00 PM GMT
Uncertainty still ‘high’ after US jobs figures
Uncertainty remains high for investors despite the apparently solid US employment figures, according to economists.
George Lagarias, chief economist at Forvis Mazars, said: “Coming in at slightly below expectations, new US payrolls didn’t really confirm some prior data suggesting a possible sudden arrest in US economic activity.
“Make no mistake, uncertainty is high, and we would not be overly surprised if US growth undershoots in the near future.
“But so far, US employment conditions are still healthy enough for the Fed to maintain its cautious stance.”
01:48 PM GMT
US axes 10,000 federal jobs as Musk cuts take shape
Some 10,000 federal jobs were lost last month as the efficiency drive led by Elon Musk began to take effect.
The US economy added a weaker than expected 151,000 jobs in February, according to the Labor Department, which also revealed the scale of federal job losses.
The figures do not show the full effect so far of the cuts being made by Mr Musk’s Department of Government Efficiency (Doge) as they only cover the period up to February 15.
01:42 PM GMT
Wall Street stocks rise despite rising unemployment
Stocks on Wall Street edged higher in premarket trading amid signs the American jobs market remains solid.
The S&P 500 and Nasdaq 100 jumped at least 0.5pc despite the unemployment rate in the US edging up from 4pc to 4.1pc last month.
Average annual earnings growth slipped from 4.1pc to 4pc as non-farm payrolls grew by 151,000 people, according to the Labor Department.
Richard Carter of Quilter Cheviot said: “The US jobs market continues to trudge on despite gloomier headlines on the economy increasing.
“The economy added a solid, if unspectacular, 151,000 jobs, as businesses continued to hire, particularly as a result of unseasonably warm weather, and companies on the West Coast bounced back following the wildfires in LA.
“However, there is concern that things may begin to turn sour in the coming months. The Trump administration has presented a fairly cloudy picture when it comes to economic policy, with harsh tariffs announced, only to be suspended for a month following backlash from markets.”
01:31 PM GMT
US economy adds fewer jobs than expected
The US economy added fewer jobs than expected last month in a sign Donald Trump’s trade war has begun to impact confidence.
US non-farm payrolls grew by 151,000 in February, according to the Labor Department, which was weaker than the 160,000 expected by analysts.
Meanwhile, the previous month’s total was also revised down from 143,000 to 125,000.
It comes as the US president wages a trade war with allies and China, potentially denting business confidence.
Meanwhile, the Department of Government Efficiency (Doge) led by Elon Musk has been carrying out sweeping cuts to federal government departments.
01:25 PM GMT
FTSE 100 set for worst week of 2025
The FTSE 100 is on track for its worst week since December, as investors remained cautious amid mounting uncertainty over US tariffs.
UK shares have slipped a further 0.6pc today, with the index closing in on a 2pc decline for the week.
Diageo’s stock dipped as much as 3.1pc amid backlash from pubs over its decision to hike Guinness draught prices by 4.2pc from May.
Justifying the price hike, a Diageo spokesperson said: “We have today informed our on-trade customers of a Cost Price Increase (CPI) on Guinness Draught products.
“Guinness is a high-quality beer that is a significant footfall generator for hospitality, and this CPI ensures we can sustain investment levels in, and continue to grow, the Guinness brand.”
Schroders fell as much as 5pc, reversing some of Thursday’s 12.6pc gains, as the money manager unveiled plans for cost reductions.
Oil companies Shell and BP dragged the index down over the course of the week, while defence companies BAE Systems and Rolls-Royce were by far the best performers - buoyed by calls to ramp up defence spending.
Richard Hunter, head of markets at interactive investor, said: “Well-worn though the phrase may be, markets hate uncertainty – and investors are getting it in spades.
“The constant changes of tack emanating from the White House on tariffs are beginning to test investors’ patience, not least because the differing messages have different implications for highly interconnected global markets.”
01:13 PM GMT
Tariff wars ‘lead to recession’
Donald Trump’s “dithering” over tariffs has had added more uncertainty to the world economy, Telegraph readers have said as they warned the policy leads to recession.
Here is a selection of views from the comments section of this article and you can join the debate below:
12:57 PM GMT
Borrowing costs edge down following bond market rout
The sharp sell-off in bonds has abated after the biggest two-day surge in German government borrowing costs since the 1970s.
Germany’s 10-year bund yield, the benchmark for the eurozone bloc, fell three basis points (bps) to 2.8pc.
The bond had surged higher, along with other sovereign debt costs, after Germany’s likely next chancellor Friedrich Merz said he would set up a €500bn fund for defence spending that would completely rewrite its fiscal rules.
The yield soared 30 basis points on Wednesday, when Germany’s plan to change its fiscal rules was announced, the biggest one-day rise since the late 1990s.
Michael Leister, head of interest rates strategy at Commerzbank, said: “A memorable week is drawing to a close, allowing markets to take stock of the seminal changes in German fiscal politics as well as tariffs and the European Central Bank.
Bond yields were slightly lower today, with the 10-year UK gilt yield at about 4.66pc.
12:33 PM GMT
US economy to go through ‘detox period’ says Treasury Secretary
The American economy may slow down as it goes through a “detox period” after becoming addicted to government spending, the US Treasury Secretary has said as he refused to rule out cuts to Medicaid.
Scott Bessent said the US could yet enjoy a smooth transition as its economy shifts away from central government support.
Donald Trump’s administration is enacting sweeping cuts to public spending through the Department of Government Efficiency (Doge) led by tech billionaire Elon Musk.
It comes as markets and the economy face turmoil from the threat of US tariffs.
Mr Bessent said he did not know if there would be cuts to Medicaid, the medical insurance programme used by 72m Americans, but said he was looking at the system.
“There’s going to be a natural adjustment as we move away from public spending,” Mr Bessent told CNBC.
“The market and the economy have just become hooked.”
12:15 PM GMT
Taiwan becomes ‘obvious target’ for Trump tariffs as US exports soar
Taiwan has become an “obvious target” for Donald Trump’s tariffs after exports surged far beyond expectations.
Shipments from Taiwan rose 31.5pc year-on-year in February to $41.3bn, nearly double the forecast of a Reuters poll and marking the 16th consecutive monthly rise.
It comes as buyers rushed to stockpile artificial intelligence-related technologies ahead of mooted US tariffs.
“Some customers made orders ahead of the US tariff uncertainty,” the finance ministry said, as Donald Trump continues to tout tariffs on semiconductors.
Exports to the US soared 65.6pc year-on-year, compared with a 0.7pc jump in January, placing the nation firmly in Trump’s crosshairs.
Gareth Leather of Capital Economics said: “Given its large trade surplus with the US, Taiwan is an obvious target.
“In the short term at least, we doubt the hit to Taiwan’s economy from semiconductor tariffs would be huge. Given Taiwan’s dominant position in the industry – it accounts for around 60pc of global production and over 90pc of the most advanced chips – importers would have little alternative to paying extra.”
However, Mr Leather pointed to this week’s announcement from TSMC, the world’s biggest semiconductor manufacturer, of intentions to invest $100bn in the US as a potential threat of long-term relocation out of Taiwan.
The loosening of US dependency on Taiwanese semiconductors would further jeopardise the Asian nation’s defence in a climate where Trump appears to favour economic gain to respecting long-standing alliances.
“Taiwan’s spending on defence will need to rise,” Mr Leather said, noting that the government’s pledge to increase defence expenditure to 3pc of GDP this year still fell short of Me Trump’s demand for Taiwan to up spending to 10pc of GDP.
11:40 AM GMT
China stocks fall amid trade war uncertainty
Chinese markets ended the week modestly lower amid the threat of US tariffs.
Chinese stocks had jumped earlier in the week after Beijing announced a growth target of around 5pc at its annual meeting of the National People’s Congress.
The CSI 300 index and the Shanghai Composite both closed down 0.3pc today as foreign minister Wang Yi warned that Beijing will “firmly counter” US pressure on trade.
He said: “China-US economic and trade ties are mutual. If you choose to cooperate, you can achieve mutually beneficial and win-win results. If you use only pressure, China will firmly counter.”
11:21 AM GMT
US stocks on track to rise ahead of jobs figures
Wall Street’s stock markets are poised to rise at the opening bell but that could all change when key jobs figures are published.
The Dow Jones Industrial Average was up 0.2pc in premarket trading, with the S&P 500 0.3pc higher and the Nasdaq 100 up 0.4pc.
Stocks have endured their most volatile week this year, with Wall Street’s fear gauge trading near levels not seen since mid-December amid Donald Trump’s tariff threats.
On Thursday, the Nasdaq confirmed a 10pc drop from its December all-time high, while the benchmark S&P 500 appeared to have reversed its gains since Trump’s election victory.
Stocks will be influenced by the Labor Department’s non-farm payrolls data, which are expected to show the economy added 160,000 jobs in February, higher than the 143,000 reported for January.
Stocks have been boosted today by Broadcom, which rose 12.6pc in premarket trading after the chipmaker delivered a strong second-quarter forecast - a day after peer Marvell disappointed investors.
Marvell rose 1.5pc after Thursday’s 20pc slide, while Nvidia and Micron added 1.3pc and 1.5pc, respectively.
10:52 AM GMT
Europe’s economy grew more than expected
Some positive news for Europe, where official figures have shown the economy expanded by more than expected at the end of last year.
Gross domestic product in the eurozone expanded by 0.2pc in the final quarter of 2024, compared to previous estimates of 0.1pc.
It comes a day after the European Central Bank downgraded this year’s growth outlook to 0.9pc and next year’s to 1.2pc as it cut interest rates for the sixth time since last summer.
However, the outlook remains uncertain amid the threat of tariffs from the US and as investors digest what will happen as a result of Germany’s €500bn spending plans on defence and infrastructure.
Neil Birrell of Premier Miton said: “Historic GDP data is hardly top of the agenda at present, but it will boost sentiment within the eurozone that the economy grew more than expected at the end of last year.
“With the ECB rate cut yesterday and their positive forecast for inflation, the outlook for the economy is improving.
“Geo-political factors and government policy will dominate for now, but the economic fundamentals are shaping up nicely.”
10:24 AM GMT
China imports slump amid trade war fears
China imports have tumbled in the first two months of the year as sabre rattling over a fully-fledged trade war with the US knocked confidence.
Shipments to China dropped 8.4pc year-on-year in January and February to $369.4bn (£285.6bn), new customs data revealed, falling well short of the 1pc growth forecasted by analysts.
In addition to weak spending, the fall suggested a decline in purchasing raw materials and parts for the purpose of re-export amid concern over falling demand from looming US tariffs.
China last year saw exports surge to a record high, presenting an economic lifeline amid slow consumption and a property sector crisis. Economists had forecast that exports would continue to rise 5pc year-on-year.
Lynn Song, chief economist for Greater China at ING, said: “China’s economy got off to a weak start in 2025 as exports grew just 2.3pc in the first two months of the year. A sharp slump in imports, meanwhile, resulted in a bigger-than-expected trade surplus.”
The deceleration could be “partly due to the slowdown of export front loading, which was strong late last year to avoid the trade war”, wrote Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.
Julian Evans-Pritchard of Capital Economics said the drop was a sign of things to come.
He said: “This slowdown comes before any substantial hit from tariffs, which will almost certainly lead to sharp falls in shipments to the US before long.”
The full extent of damage caused by new US tariffs - imposed in two rounds of 10pc blanket hikes in early February and this week - will likely begin to be seen next month.
China’s overall trade surplus grew to $170.5bn in the first two months of the year.
10:05 AM GMT
Euro poised for best week since 2009 amid Trump turmoil
The euro was on track for its best week in 16 years amid Donald Trump’s upheaval of the global order with tariffs and withdrawal of support for Ukraine.
The single currency has been boosted by Friedrich Merz’s plans to set up a €500bn investment fund for German defence and infrastructure when he becomes chancellor.
It has been a turbulent week in currency markets which has seen the dollar fall against its peers amid uncertainty over US trade policy.
Kenneth Broux of Societe Generale said: “This week is a watershed moment ...because we’ve lived through a couple of years of dollar and US growth exceptionalism and dollar strength.”
The euro was up 4.5pc against the dollar this week, putting it on course for its best performance since March 2009.
The US currency also faces uncertainty ahead of non-farm payrolls (NFP) data today, which will indicate the health of the American economy.
Mr Broux said: “I do not think that a stronger NFP print is going to stop this move higher in euro/dollar. It could slow it, but I don’t think it’s going to change the trend.”
The euro was up 0.2pc against the pound today, making it worth just under 84p. It was up 1.6pc versus sterling this week, its best performance since February 2023.
09:43 AM GMT
Gas prices plunge as Trump suspends military support for Ukraine
One bright spot for consumers in global markets comes from wholesale gas, where prices have tumbled to their lowest level since September.
The benchmark European contract fell as much as 5.1pc today, putting it on track for its fourth consecutive weekly decline, which is the longest run since 2023.
Prices have plunged 35pc since their peak in February as Donald Trump pushed for a peace deal in Ukraine.
This week he suspended military aid and intelligence sharing with Kyiv in an effort to push President Volodymyr Zelensky into further talks.
Dutch front-month futures were last down 3.7pc at just under €40 per megawatt hour.
09:13 AM GMT
Oil prices slump amid Trump trade war
Oil is on track for its worst week since October amid uncertainty about how Donald Trump’s global trade war could impact demand.
Brent crude, the international benchmark, was last up 1.1pc today to tip back over $70 a barrel but was down nearly 4pc over the course of the week.
Opec+, the cartel of oil producing nations and their allies, said on Monday it would push ahead with plans to increase production from April.
It comes as the prospect of a peace deal in Ukraine also opens the door to an increase in Russian oil exports.
Meanwhile, China’s foreign minister Wang Yi warned Beijing will “firmly counter” US tariffs, indicating a trade war is about to deepen between the world’s two largest economies.
Vandana Hari of Vanda Insights said oil prices are “vulnerable to further slides”.
She said: “It’s really going to be all in lock-step with Trump’s moves on trade for as far as the eye can see.”
08:47 AM GMT
European shares drop as Trump tariff plans waver
European shares plunged as Donald Trump’s frequent shifts in US trade policy spooked investors ahead of key US jobs data later today.
The Dax in Frankfurt sank 1.4pc and the Cac 40 in Paris dropped by 1.1pc despite the US president suspending tariffs of 25pc he had imposed this week on most goods from Canada and Mexico.
The pan-European Stoxx 600 was down 0.8pc after the about turn from the US administration, putting it on track to snap its streak of 10 straight weekly gains.
The index ended flat on Thursday as a boost from the European Central Bank’s interest rate cut countered pressures from rising long-term bond yields.
Luxury stocks also weighed heavily on the main index, with shares of Richemont down 4.1pc, Burberry sliding 4pc and Kering falling 2.6pc.
Retailers also fell sharply as they were dragged down by a 3.8pc fall in e-retailer Zalando, after it secured the purchase of 90pc of About You’s.
All eyes will be on the US nonfarm payrolls report, followed by a speech from Federal Reserve Chair Jerome Powell, which could provide clues about monetary policy outlook for the world’s biggest economy.
08:27 AM GMT
China vows to retaliate further against ‘arbitrary tariffs’
China’s foreign minister said the world’s second largest economy will continue to retaliate for the United States’ “arbitrary tariffs”.
Wang Yi accused Washington of “meeting good with evil” in a press conference today on the sidelines of the country’s annual parliamentary session.
Mr Wang said China’s efforts to help the US contain its fentanyl crisis have been met with punitive tariffs, which are straining their ties.
He said: “No country should fantasise that it can suppress China and maintain a good relationship with China at the same time.
“Such two-faced acts are not good for the stability of bilateral relations or for building mutual trust.”
He said if every country adopted the US administration’s policies, it would lead to an international “law of the jungle”.
He said: “Small and weak countries will get burnt first, and the international order and rules will be under severe shock.
“Major countries should undertake their international obligations... and not seek to profit from and bully the weak.”
08:06 AM GMT
UK stocks fall amid Trump tariff confusion
The FTSE 100 slumped at the open as Donald Trump’s scaling back of his tariffs failed to calm the nerves of investors.
The UK’s blue-chip stock index was down 0.3pc to 8,659.57 while the midcap FTSE 250 fell 0.4pc to 20,073.67.
07:55 AM GMT
European markets on track to fall
British and European markets are on track to follow US and Asian markets lower when trading begins shortly.
FTSE 100 in London and the Cac 40 in Paris were down 0.4pc in premarket trading.
The Dax in Frankfurt was on course to slump by more than 1pc after official figures showed factory orders fell in January by the most in a year.
07:41 AM GMT
Dollar slumps amid shifting Trump tariff plans
The dollar was weaker against global currencies as Donald Trump weakened his tariff plans.
The pound gained 0.2pc versus the greenback to tip back above $1.29 while the euro rose 0.4pc against the dollar to $1.083.
The Swiss franc hit a three-month peak of 88.1 cents.
It comes despite the US president’s decision to delay tariffs on a range of goods that comply with a trade deal between the US, Mexico and Canada.
Kieran Williams of InTouch Capital Markets said “the signs that US exceptionalism is on the wane continue to increase”.
He said the dollar has “fallen out of favour” amid the uncertainty caused by the President’s tariff policies.
07:26 AM GMT
House prices edge down as ‘weakness in economy’ hits demand
House prices fell slightly last month, industry figures show as weakness in Britain’s economy impacted demand.
Property values were down 0.1pc in February compared to the previous month to £298,602, according to the Halifax house price index.
Ashley Webb, an economist at Capital Economics, said the drop indicated “ the weakness in the wider economy is weighing on housing demand”.
Traders have reduced bets on the Bank of England cutting interest rates this year in response to Donald Trump’s tariff trade war and huge economic stimulus from Germany, which has pushed up yields in bond markets.
Mr Webb said: “The recent deterioration in the outlook for employment may mean house price growth softens further over the coming months.”
Amanda Bryden, head of mortgages at Halifax, said February’s figures “highlight the delicate balance within the UK housing market”.
She said: “While there’s been talk of a last minute rush on new mortgages ahead of the changes to stamp duty, inevitably we’ve seen some of the demand that was brought forward start to fade as the April deadline ticks closer, given the time needed to complete a purchase.”
07:10 AM GMT
Bitcoin tumbles as Trump signs order on strategic reserve
The price of bitcoin dropped after Donald Trump signed an executive order to establish a strategic reserve, a day before meeting with executives from the cryptocurrency industry at the White House.
The reserve will be capitalised with bitcoin owned by the federal government that was forfeited as part of criminal or civil asset forfeiture proceedings, the White House crypto czar, billionaire David Sacks, said in a post on social media platform X.
However, the world’s largest cryptocurrency briefly tumbled more than 5pc to below $85,000 following Sacks’ post, and last changed hands at $88,165.
Attendees at today’s White House crypto summit expect the event to serve as a stage for Trump to formally announce his plans to build a strategic reserve containing bitcoin and four other cryptocurrencies.
07:09 AM GMT
Sell-off deepens despite Trump tariff delays
A global stock market sell-off deepened overnight as Donald Trump’s decision to delay tariffs on more companies failed to boost morale.
European shares were on track to fall at the open after Japan’s Nikkei 225 plunged by 2.1pc while the S&P/ASX 200 in Australia tumbled 1.8pc.
The declines followed a bruising day on Wall Street even after President Trump offered another temporary reprieve from his 25pc tariffs on many goods imported from Mexico and Canada.
US stocks had jumped on Wednesday after the President announced a one-month delay for car makers but his intervention failed on Thursday amid a sharp decline in technology shares.
The benchmark S&P 500 dropped 1.8pc, the Dow Jones Industrial Average fell by 1pc and the Nasdaq Composite sank 2.6pc, finishing more than 10pc below its record set in December.
Chris Weston, head of research at Pepperstone, said: “Confusion reigns around the Trump administration policy agenda.
He added that despite the latest tariff pause “the lack of consistency to hold policy firm further limits the visibility US businesses have to position margins and to make strategic planning decisions”.
06:49 AM GMT
Good morning
Thanks for joining me. Donald Trump’s decision to delay tariffs on more goods failed to stem a sharp sell-off in global stock markets.
Asian shares tumbled overnight despite the one-month reprieve on many goods from the 25pc tariffs imposed on Mexico and Canada.
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What happened overnight
Asian stocks tumbled following a tough day on Wall Street as uncertainty over US President Donald Trump’s trade policies roiled markets.
Bitcoin plunged 5.7pc after Mr Trump signed an executive order to establish a “Strategic Bitcoin Reserve” without planning any public purchases of the cryptocurrency.
The cryptocurrency recovered somewhat and was trading down 2.2pc at $87,951.
Major indices in Asia were in the red despite Mr Trump’s move Thursday to delay some tariffs targeting Canada and Mexico.
But the President has said he will not modify broad tariffs for steel and aluminium imports, which are due to take effect next week.
In Tokyo, the Nikkei 225 fell 2.3pc to 36,856.39 on heavy selling of technology related shares. Computer chip-maker Tokyo Electron’s shares dropped 3.6pc and testing equipment maker Advantest gave up 2.3pc. Both saw steep drops in their US-listed shares overnight.
Hong Kong’s Hang Seng held steady, gaining 0.6pc to 24,504.80, while the Shanghai Composite index was nearly unchanged at 3,381.33.
In Australia, the S&P/ASX 200 tumbled 1.8pc to 7,951.90. South Korea’s Kospi edged 0.1pc lower, to 2,574.06, and the Taiex in Taiwan declined 0.7pc.
India’s Sensex was down 0.7pc and the SET in Bangkok gained 0.7pc.
Wall Street’s sell-off kicked back into gear on Thursday. The US stock market, rattled by the whiplash created by Donald Trump’s tariffs, fell sharply.
The S&P 500 tumbled 1.8pc, to 5,738.52, resuming its slide after a mini-recovery on Wednesday clawed back some of its sharp drop over recent weeks. The Dow Jones Industrial Average dropped 1pc, to 42,579.08, and the Nasdaq Composite sank 2.6pc, to 18,069.26, finishing more than 10pc below its record set in December.
US stocks fell even though President Trump offered a one-month reprieve from his 25pc tariffs on many goods imported from Mexico and Canada. That was unlike the bounce that stocks received on Wednesday after he gave a one-month exemption specifically for US carmakers.
In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.276pc from 4.326pc late on Wednesday.