China retaliates against Donald Trump’s ‘explosive’ tariffs as global trade war escalates – live updates

Donald Trump has urged companies to move to the US in his first remarks since China escalated a trade war sparked by his sweeping tariffs.

Writing on Truth Social, the President said:

This is a GREAT time to move your COMPANY into the United States of America.”

ZERO TARIFFS, and almost immediate Electrical/Energy hook ups and approvals. No Environmental Delays. DON’T WAIT, DO IT NOW!

The interest paid on long-term government debt has soared to its highest level in almost 28 years, after wide-ranging US tariffs came into effect.

Donald Trump’s White House announced additional tariffs amounting to 104 per cent of Chinese imports as the US looks set to disrupt global trade relations with double-digit levies on its trading partners.

Investors, who had been hoping for a reprieve a day earlier, were left with nowhere to hide on Wednesday as stocks markets plunged and margin calls forced a fire sale of so-called ‘safe haven assets’ like government bonds.

The yield on 30-year gilts – the interest paid on UK government debt – rocketed as much as 16 basis points higher to push beyond the multi-decade high set in January and hitting their highest level since July 1998.

It follows the biggest one-day move since the 2022 Liz Truss Budget blow-up on Monday.

China has lodged a complaint to the World Trade Organisation (WTO) against further US tariffs.

It comes after China today told the WTO the US’ decision to impose these mass tariffs threatens to further destabilise global trade.

‘The situation has dangerously escalated. …As one of the affected members, China expresses grave concern and firm opposition to this reckless move,’ China said in a statement to the WTO on Wednesday that was sent to Reuters by the Chinese mission to the WTO.

US treasury secretary Scott Bessent has just described China’s retaliation as ‘unfortunate’.

Speaking to Fox Business Network, Bessent said the move by Beijing is a ‘loser for them’ and added ‘so what’ in his immediate reaction to the increase on US goods to 84%.

I think it’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system.

Xi Jinping’s China will impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced, the finance ministry said on Wednesday.

The ministry said these changes will take effect from midnight local time (5am UK time) April 10.

It added that it was putting export controls on 12 more American companies, and had added six more US firms to its list of ‘unreliable entities’ that are largely banned from doing business in China or with Chinese companies.

Read our developing story here:

Stock markets in Europe have dropped sharply after China announced it would impose increased tariffs on the US.

The retaliatory move by Beijing has escalated growing fears of a trade war after the US hiked up its import taxes on Chinese goods to 104%.

As of 12:30pm, the UK’s FTSE 100 has dropped 3.3% so far, while the German Dax is down 4% and the French Cac 40 is down 4%.

The slump comes after markets had stabilised somewhat yesterday amid hopes of negotiations surrounding Trump’s sweeping tariffs.

US markets are due to open at 2:30pm UK time.

China has has announced an additional 84% tariffs on all goods imported from the US.

It comes after Beijing was hit with 104% duties by Donald Trump.

China’s finance ministry said the new changes will come in on April 10.

Liberal Democrat leader Sir Ed Davey has criticised US President Donald Trump’s rising trade war with China.

Speaking during a local election visit to Gloucester, he said:

You know, we used to have presidents of all political persuasions who we could rely on. But I’m afraid Donald Trump is an unreliable ally. He’s unreliable when it comes to defence and supporting Ukraine against the awful President Putin.

Now he’s unreliable on trade and it’s not just with China, it’s with the UK, it’s with our close allies, with Canada. I think we’ve got to stand up to him. I think it’s right that Number 10 is trying to talk to the White House.

But I think they need another strategy at the same time, and that is to be a bit tougher, to work with our European allies, our Commonwealth allies and others to have an economic coalition of the willing to promote free trade.

Russia has criticised the US for imposing 104% charges on Chinese goods.

Russian foreign ministry spokesperson Maria Zakharova said:

Washington doesn’t seem itself binded by the norms of international trade law.

Speaking about Trump’s decisions to impose tariffs, she said they ‘violate the fundamental rule of the WTO’.

Russia is not one of the 60 countries affected by Trump’s tariffs as the US and Russia are not trading partners following sanctions imposed in the wake of the Ukraine invasion.

But Russia’s economy could be impacted by China.

Chinese accounts have unleashed a torrent of memes ridiculing Donald Trump, Americans and the stock market collapse amid a burgeoning trade between China and the United States.

AI-generated video published on Chinese TikTok accounts painted a glum picture of life in a re-industrialised America, with obese factory workers stitching cheap clothes.

The video was seen millions of times before circulating among Western audiences on X.

Chinese media also jumped on the viral memes showing penguins hit by Trump’s tariffs on the otherwise uninhabited Heard and McDonald islands.

Watch the clip below and read the full story here

Chancellor Rachel Reeves said she does not want to ‘see an escalation of tariffs’, after Donald Trump’s worldwide tariffs came into effect.

Speaking to broadcasters, she said:

Trade wars are to the benefit of no-one, and that is why in the UK we are keeping cool heads and remaining pragmatic. We will always act in our country’s national interest for jobs and to support British business.

That’s what we will continue to do whilst we have ongoing discussions with our counterparts in the United States. We don’t want to see an escalation of tariffs. We want to do a deal that supports the UK economy.

The Chancellor and and Business Secretary Jonathan Reynolds will later meet India’s finance minister for talks aimed at negotiating a deal with the country.

It comes as Ms Reeves tries to ‘accelerate’ trade deals with countries to mitigate the impact of Trump’s tariffs.

Risks to the stability of the world’s financial system have increased as US tariffs could weigh on global economic growth, the Bank of England has warned.

Households and businesses nonetheless remain resilient and the UK banking system is equipped to support them even through a period of stress, the Bank’s Financial Policy Committee (FPC) said in its latest report.

The global risk environment has deteriorated and uncertainty has intensified. The probability of adverse events, and the potential severity of their impact, have risen.

It follows US President Donald Trump announcing a series of new and higher tariffs on all imports to the US, resulting in retaliatory charges including by China.

The major shift in global trade arrangements could ‘harm financial stability by depressing growth’ in the world’s economy, the Bank said.

Here is some reaction from financial experts as Trump’s tariffs kick in for the so-called ‘worst offenders’ including huge 104% duties on Chinese goods.

• Susannah Streeter, head of money and markets, Hargreaves Lansdown

The feared escalation of the trade war is playing out and it’s sent another jolt of deep pessimism through markets. Trump continues to act as though trade is his plaything, and he’s wound up the equity rollercoaster for another plunge downwards. With no last-minute reprieve being snuck in before the midnight deadline, Trump’s punishing 104% tariffs on Chinese goods have come into effect.

For China, so highly reliant on exports to power the economy, this will hurt, as its goods become uncompetitive in the vast US market. But its hugely painful for US companies, reliant on cheaper Chinese goods and parts, and American consumers will ultimately bear the cost, with prices set to rise across a huge array of goods, from toys and clothes to phones and gaming consoles.

• Russ Mould, investment director at AJ Bell

Investors had initially taken some positives from a willingness in the White House to negotiate with Japan and Israel but an escalation with China triggered another sell-off on financial markets. US consumers buy a lot of goods from China, so the 104% tariff could stoke inflation big time.

Investors are looking for any indication that the US government might blink in the face of the turmoil. For now, there are no signs of a willingness to back down or hit pause on tariffs. The longer the situation persists, the harder and more complex it will be to unpick.

A trend which will be watched closely is an apparent loss, whether temporary or otherwise, of US assets’ safe-haven status. Treasuries sold off heavily amid some speculation China and other parties are dumping their holdings as a retaliatory tool. The dollar also remains under the cosh.

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by Toby Walne and Lucy Evans

Not since the pandemic have our finances faced such a sudden shock.

Global financial markets have plummeted precipitously since President Donald Trump announced tariffs on all goods coming into the US.

The obvious immediate impact has been on pensions and investments – but the trade war has left millions in Britain concerned and confused about the consequences for the economy and the cost of living.

But, while experts fear Trump’s actions could lead to a global recession, the news is not all gloom for UK consumers.

A very brief window to snap up good deals may have opened up – from mortgages and petrol to clothes, electronic goods and cars.

British long-dated gilt yields have reached their highest point since 1998 while the FTSE 100 slumped in response to President Donald Trump imposing his latest round of tariffs.

The yield on a 30-year UK gilt hit 5.518% on Wednesday morning, up 16 basis points and surpassing a previous 27-year high of 5.472% set in January.

It means it could make things more difficult for the government in Westminster, as it will raise the cost of borrowing to fund investment.

Chancellor Rachel Reeves is already struggling to find money and was forced to cut welfare spending recently to ensure she stuck to her fiscal rules.

The movement followed on from a sharp rise in 30-year US Treasury yields overnight and comes amid rising bets from investors that the Bank of England will cut rates faster than previously expected this year.

Shorter-dated 10-year gilt yields were slightly higher at 4.69% while two-year yields ticked down at 3.92%.

The FTSE 100 was down 2.47%, or 195 points, at 7,715, on Wednesday morning.

Investors have ramped-up bets on Bank of England interest rate cuts amid growing fears the outbreak of a trade war will weigh heavily on economic growth.

Signs of resurgent inflationary pressures had stifled expectations for further cuts this year as investors bet the bank would keep base rate high in efforts to tame price growth.

Just a month ago, markets had expected just one or potentially two more cuts this year of 25 basis points each, which would have taken base rate from its current level of 4.5 per cent to 4.25 or 4 per cent by year-end.

But markets were pricing in almost four cuts by the end of 2025 on Wednesday after US President Donald Trump’s 104 per cent tariffs on China took effect.

Interest rate futures pointed to about 95 basis points of reductions to the BoE’s benchmark bank rate by December, compared with around 78 bps on Tuesday as financial markets braced for a hit to economic growth.

Three cuts of 25bps each this year would take base rate to 3.75 per cent, while four would take it to 3.5 per cent.

The European Union will later vote on whether to impose retaliatory 25% tariffs on US exports which would come into effect next month.

The 27-nation bloc will discuss whether to raise duties on US goods including agricultural produce, make-up, steel parts and plastics.

The goods are understood to have been chosen because they can be easily sourced from elsewhere.

It was reported the EU would refrain from adding tariffs to bourbon amid fears reprisals could hurt European made wines and spirits.

The vote could mark Europe’s first act of retaliation against Donald Trump’s tariffs. Most of the tariffs would apply from 15 May, unless blocked by a majority of member states.

Famed investor Steve Eisman has offered a glimmer of hope for President Trump’s controversial tariff policy, insisting the United States could still come out on top.

Amid plunging markets and fears of a global recession, Eisman – whose own exploits during the 2008 market crash were chronicled in Hollywood blockbuster The Big Short – said Trump could get ‘pretty much what he wants’ out of the tariffs.

‘The reason why cooler heads will prevail is that, again, in a trade war, everybody will suffer; the US will suffer the least. If reasonable heads prevail, Trump will get pretty much what he wants.’

Watch the video below and read the full story here

Global stocks resumed losses on Wednesday as sweeping US trade tariffs came into effect and the market bloodbath extended to ‘safe haven’ assets.

Chinese imports now face combined US tariffs of 104 per cent, while retaliatory measures imposed by Beijing look set to further disrupt the $583billion worth of trade between the two economic powerhouses.

Markets had rallied on Tuesday on hopes the White House may be willing to negotiate its tariffs policies, but have been propelled into reverse as no concessions emerged.

China has reiterated it will ‘fight to the end’ in the country’s first response since Donald Trump imposed 104% tariffs in response to retaliatory measures taken by Beijing.

The tax on Chinese goods represents the highest tariff living memory.

Speaking at a daily news conference, China’s foreign affairs spokesperson Lin Jian said the Chinese people’s ‘legitimate right to development must not be deprived’ by Trump’s tariffs.

He accused the US of adopting ‘bullying practices’ and urged the Trump administration to ‘demonstrate an attitude of equality and mutual respect’ going forward.

Reiterating China’s previous stance, he said the country would be compelled to ‘fight to the end’ if Trump ‘insists’ on provoking a trade war.

Donald Trump insisted he knew what he was doing as his tariffs saw global stocks plunge amid fears of an all-out trade war with China.

Speaking at a National Republican congressional committee dinner, Trump said:

Companies are pouring back into our country. I know what the hell I’m doing. I know what I’m doing, and you know what I’m doing, too. That’s why you vote for me.

They ripped us off left and right. But now it’s our turn to do the ripping. And I do think that the war with the world, which is not a war at all, because they’re all coming here. Japan is coming here as we speak.

They’re in a plane, flying lots of them, all tough negotiators, but things that people wouldn’t have given us two years ago … three years ago, five years ago, seven – they’re giving us everything. They don’t want tariffs on themselves.

On Wall Street yesterday, the S&P 500 dropped 1.6 per cent after wiping out an early gain of 4.1 per cent. That took it nearly 19 per cent below its record set in February.

The S&P 500 has shed nearly $6trillion since Mr Trump unveiled the tariffs last week, the deepest four-day loss since the benchmark’s creation in the 1950s. The index is now nearing a bear market, defined as 20 per cent below its most recent high.

Chancellor Rachel Reeves insisted Britain is ‘accelerating trade deals’ with the rest of the world as Donald Trump’s global tariffs continue to trigger economic shockwaves.

The Chancellor and Business Secretary will later meet India’s finance minister for talks aimed at negotiating a deal with the country as the Chancellor said she wanted to create “the best possible conditions” for British business in a “changing world”.

Prime Minister Sir Keir Starmer on Tuesday reiterated his call for a calm approach to the changed US trade policy as a sense of optimism returned to the financial markets after several days of heavy losses.

Britain faces the lowest 10% ‘baseline’ tariff rate and has resisted imposing immediate retaliatory action, unlike the European Union which is impacted by a 20% import tax.

Ministers still hope an economic agreement with Washington can be reached to soften the blow of the levy which strikes UK goods, along with a 25% import tax on cars and separate ones for steel and aluminium.

But the Government will also seek to strengthen trade ties with other countries, including by trying to rebuild ties with the European Union.

In a changing world, this Government is accelerating trade deals with the rest of the world to back British business and provide the security working people deserve. We are going further, faster to create the best possible conditions for British business by working to reduce barriers to trade.

Asian stock markets tumbled earlier this morning as they opened lower and extended their losses throughout trading hours.

Japan’s stock index fell more than 5 per cent at one stage with global markets having been wobbly for days as investors are flummoxed over what to make of the trade war.

• The Nikkei 255 ended the day down 2.7 per cent at 32,130
• the Hang Seng in Hong Kong lost 1.8 per cent to 19,769;
• South Korea’s Kospi fell 1.9 per cent to 2,291.
• The Shanghai Composite index was trading roughly level at 3,141,
• While the S&P/ASX 200 in Australia declined 1.8 per cent to 7,375 and shares in New Zealand also fell.

This morning, European indexes have seen a slump with the UK’s FTSE 100 dropping 2.34% while France’s Cac 40 is down 2.4% and Germany’s Dax fell by 2.3%.

The FTSE 100 fell sharply on Wednesday morning after a new wave of Donald Trump’s tariffs came into force, including a 104% levy on Chinese goods.

The index, which tracks the UK’s top 100 listed companies, fell 2.34% in early trades, or by 186 points, to reach 7,724.29 shortly after opening, wiping out most of the gains made on Tuesday.

Elsewhere in Europe, France’s Cac 40 was down by 2.4% while Germany’s Dax index slumped by about 2.3%.

Here is our top story this morning as stock markets plunged in response to Donald Trump’s tariffs which came into effect for around 60 countries.

The President’s tariffs have shaken a global trading order that has persisted for decades, raised fears of recession and sent stock markets around the world reeling.

Read Mark Duell’s story here:

Good morning and hello to MailOnline’s live coverage as stock markets plunge once again in response to Donald Trump’s tariffs.

Trump’s tariffs have taken effect on around 60 countries including a 104 per cent levy on Chinese imports.

Countries have been braced for potential economic damage from the import taxes on goods entering the US from midnight Washington time – just after 5am in the UK.

Stick with us for the latest news, reaction and analysis throughout the day.