Donald Trump sensationally announced he would pause crippling tariffs on dozens of nations in a spectacular climb down from his hard-line position.
Mr Trump announced today he would have a 90-day pause on the tariffs. In a post shared to his social media platform truth Social, Mr Trump said he would keep up the pressure on China, imposing import taxes of 125 per cent “effective immediately” due to the apparent “lack of respect” shown by Beijing.
“At some point, hopefully in the near future, China will realise that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he added.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
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In the last few minutes, the S&P 500 index has opened 2.1% down – suggesting yesterday’s rally sparked by Trump’s U-turn might be on the wane.
Donald Trump has decided to row back on many of the steep tariffs he put in place last week amid signs of weakness in the US Treasury following his disastrous ‘Liberation Day’ announcement.
The cost of borrowing in the US had shot up amid the recent stock market turmoil, prompting a hurried statement from the president on Truth Social yesterday that all the tariffs would now be reduced to a basic rate of 10%.
That is unless you’re China, who will now be paying an extraordinary 124% in response to the retalliatory measures they had put in place on American goods.
The UK had been told it would be paying 10% on all goods sent to the US, so from that perspective nothing has changed.
However, the initial signs of a slight upturn in the global financial markets today can only be a good thing, with the FTSE among the many indexes badly hit by the stock market crash.
Many economists had warned that wide-ranging US tariffs could trigger a new global recession, and while this still can’t be ruled out, it’s looking a little less likely than it did before the tariff ‘pause’ was announced.
Keir Starmer has announced thousands more neighbourhood police officers across England and Wales.
The Prime Minister was joined by Home Secretary Yvette Cooper in Cambridgeshire, where they vowed to turn the tide in the battle against thugs and thieves.
Earlier Ms Cooper said local police teams have been “decimated”, piling misery on communities.
Watch live as Keir Starmer announces huge changes to police affecting every area
After dramatic rebounds on the FTSE and many other European trade indexes so far today, investors are hoping for a similar pattern on the New York Stock Exchange when it opens at 2.30pm (BST).
Upward swings on the US markets began yesterday afternoon following Trump’s announcement of a U-turn on his tariffs, with all nations but China now set to pay the same 10% levy.
However, some indicators show that there may be some sliding back today, with tech stocks expected to fall at the start of trading.
The Cabinet Office is to shed a third of its jobs as part of a drive to shrink the Civil Service, the government has announced.
Around 1,200 posts will be lost under plans announced to civil servants today, with another 900 being transferred to other departments.
The 2,100 job cuts represent just under a third of the 6,500 “core staff” at the Cabinet Office, the strategic centre of the British state.
A Cabinet Office source said: “Leading by example, we are creating a leaner and more focused Cabinet Office that will drive work to reshape the state and deliver our plan for change.
“This Government will target resources at frontline services – with more teachers in classrooms, extra hospital appointments and police back on the beat.”
Cabinet Office to cut a third of jobs as Labour seeks to shrink Civil Service
Donald Trump has been accused by critics of ‘insider trading’ after he told his social media followers that it was ‘a great time to buy’ just hours before his tariffs U-turn reversed several days of steep decline on the financial markets.
Democratic senator Adam Schiff has called for an investigation into whether his posts constituted a deliberate manipulation of the markets, and said: “These constant gyrations in policy provide dangerous opportunities for insider trading.
“Who in the administration knew about Trump’s latest tariff flip-flop ahead of time? Did anyone buy or sell stocks, and profit at the public’s expense? I’m writing to the White House – the public has a right to know.”
The EU is set to delay its retaliatory tariffs against the US after Donald Trump slashed the rate placed on the bloc in half.
The White House announced yesterday that it would switch to to a 10% baseline levy against imports from all countries other than China, bringing down the previously announced 20% tariff on the EU.
The European Union is due to begin collecting €21 billion (£18 billion) in counter-tariffs on American metals imports from April 15, in response to the separate 25% tax on all aluminium and steel imported to the US.
But now, top EU officials want to suspend the collection of duties in a bid to encourage broader dialogue with the White House over trade.
We took note of the announcement by President Trump.
We want to give negotiations a chance.
While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days.
If negotiations are not satisfactory, our…
Keir Starmer said he would not “pretend that tariffs are good news” and that the Government was not “just going to sit back and hope” – but vowed that the country would “rise to the moment”.
In a visit to Sheffield this morning, the Prime Minister said: “This Government is ambitious for Britain … and I’m not going to stand here and pretend that tariffs are good news. That is not true, and you wouldn’t believe me if I said it, but just as we’ve seen recently on defence and security across Europe, and with Ukraine, they do make one thing very clear, and that is that the world is changing, and we as a country must change with it.
“In other words, we’ve got to rise to the moment here, recognise where our future lies, renew Britain and deliver security for working people, and that’s why we’ve taken the decision to accelerate our plans to create wealth in every community, and every community is really important here…
“We are not a Government (that’s) just going to sit back and hope. I strongly believe that is how politics has failed our communities for so many years … what we’ve got to do, what we’re offering, is fundamental change.”
While many will undoubtedly be relieved to see share prices rebounding after Donald Trump’s U-turn on tariffs, it’s worth noting that many of the indexes are still considerably below where they were two weeks ago, before the US president’s ‘Liberation Day’ announcement.
Last night, economists from Goldman Sachs retracted a note issued to staff predicting a recession in the US this year.
It followed a post on Truth Social yesterday evening by President Trump, who said he was rescinding tariffs imposed on other countries, but would be increasing the levy placed on Chinese goods to 125% after the nation retaliated to his previous tariff with its own 84% charge.
It means we’re still in the midst of a trade war between the world’s two largest economies, with no sign yet that either side is prepared to step back.
China has “no fear” in responding to any further tariffs from the United States, the country’s finance ministry spokesperson said this morning after Donald Trump hiked the levy charged on imported goods to 125%.
Spokesman Lin Jian said: “Tariff wars and trade wars have no winner.
“China does not want to fight them but has no fear when they come our way.”
Outside of London, Donald Trump’s “pause” on tariffs has also sparked a rally on many European indexes this morning.
The DAX in Frankfurt is up 7.7%, while France’s CAC has gained 6.8%.
Trading in the City opened at 8am – and within minutes the FTSE 100 has leapt by 6%, recording its highest jump since 2020.
The FTSE 100 is a list of the top one hundred publicly traded companies on the London Stock Exchange by market capitalisation, and includes many of Britain’s biggest employers.
Home Secretary Yvette Cooper has said that there is no change in the Government’s position this morning after Donald Trump announced a spectacular U-turn on his tariffs policy.
Britain had been hit with a 10% all goods exported to the US under the ‘Liberation Day’ measures, though this has now been reversed.
She told Sky News: “Our position hasn’t changed. We are continuing to approach this in a calm, steady way, continuing to negotiate and work in the UK’s national interest.
“But look, overall what we want to see is a reduction in barriers to trade so countries can trade effectively, rather than increases.”
Traders in London are expecting the FTSE to rally this morning in response to Donald Trump dialling down the majority of his ‘retaliatory’ tariffs.
It follows similar moves in the US last night, where the S&P 500 ended the day 9.5% higher and the Nasdaq 100 leapt by 12% after the announcement from the White House.
Asian markets also bounced back overnight following several days of tumbling share prices, including the Nikkei in Japan, which was up 8.2%.
Downing Street said that the UK will “coolly and calmly” continue its negotiations after Donald Trump announced a 90-day tariff pause for most nations.
The US president said he would be delaying tariffs on most nations for 90 days while raising his tax rate on Chinese imports to 125%. The precise details were not immediately clear, but the US treasury secretary has said Mr Trump will keep his 10% baseline tariffs on most countries.
It is understood that this does not mean any immediate change for the UK. A No 10 spokeswoman said: “A trade war is in nobody’s interests. We don’t want any tariffs at all, so for jobs and livelihoods across the UK, we will coolly and calmly continue to negotiate in Britain’s interests.”
Trump claimed today that multiple countries were building manufacturing factories in the US.
It is unclear how many countries have agreed to build the manufactories and whether these were pre-arranged before the tariffs.
After Trump retreated from his tariff war, US treasury secretary Scott Bessent said it had been the president’s strategy “all along”.
But just hours later, Trump appeared to contradict Bessent’s statement after he told reporters that he decided to pause the tariffs in response to the market meltdown.
Donald Trump has signed off from Truth Social hailing what he has called a “great day”.
The US president, who paused all tariffs for 90 days except China, also vowed that “more great days are coming”.
The price of an iPhone is set to skyrocket by hundreds of pounds due to Donald Trump’s trade war, experts claim.
Most of Apple’s devices are made in China but the parts involved come from a staggering array of nearly 50 countries – all of which have seen tariffs slapped on them by the US President. As a result, Apple’s share price has fallen to such an extent it lost the crown as the world’s most valuable company to Microsoft this week.
Prices of groceries, clothes and other items are set to rocket in the UK. The iPhone, one of Apple’s best-selling products, will also become more expensive, it is thought. It is understood Mr Trump, 78, wants to manufacture the devices on home soil – rather than importing from Asia – which experts say will only add to the chaos.
Price of Apple iPhone set for staggering hike amid Donald Trump’s trade war
Donald Trump has claimed he pulled back on many tariffs – authorising 90-day pauses for dozens of nations – because people were getting “yippy” and “a little bit afraid”.
The US President, 78, told reporters he had made the decision following fierce reaction to the tariffs in the past week. In an opaquely worded statement on Truth Social, Mr Trump praised 75 countries which he said had not retaliated and had sought to negotiate with Washington.
In his post, the world leader said he had “authorised a 90-day pause, and a substantially lowered reciprocal tariff during this period, of 10 per cent, also effective immediately.” Just one hour later, the President told journalists why he made this call, explaining how people had become “yippy” in recent days.
Donald Trump says 90-day pause was issued because people were ‘yippy’ and ‘afraid’
Donald Trump’s trade adviser Peter Navarro described the president’s tariff climb down as “one of the greatest days in American economic history.”
He told Fox News “all the nervous nellies” on Wall Street undermined the president.
He claimed the tariff situation “unfolded exactly the way it should.”
Texas Republican Senator Ted Cruz told Fox News Donald Trump had been facing a “fork in the road.”
Sen. Cruz, an ally of the president, said had the threat of tariffs been used as a negotiating tactic it could result in new deals being made.
But he admitted another was to leave high tariffs in place permanently.
He added: “That path is a terrible path.” Sen. Cruz said he believed Mr Trump made the best option.
The World Trade Organisation has forecast that US-China trade could fall by as much as 80 per cent due to the collapsed relationship between the two countries.
It said the amount could fall by as much as $466 billion as trade between the world’s largest economies hits steep barriers.
Donald Trump has been speaking to reporters in the Oval Office, while signing numerous more executive orders.
The conversation turns to China’s tariffs, and Trump said: “Xi is a smart guy and we’ll end up making a very good deal. He’s one of the smartest people in the world”.
“Xi is a man who knows exactly what has to be done, he loves his country. We will get a phone call at some point and then it’s off to the races.”
US Treasury Secretary Scott Bessent claimed Donald Trump’s decision was not influenced by the downturn in the market’s performance.
When asked whether the spectacular downturn was the reason for trump’s climbdown, Mr Bessent said: “We’ve had more than 75 countries contact us, and I imagine, after today, there will be more. So it is just a processing problem.”
Iowa Republican Senator Charles Grassley used 00s lingo to praise Trump over his tariff retreat.
Taking to X/Twitter, he said: “I applaud pres trump for 2days tariff news he is a gr8 deal maker &will continue to bring fairness to US economy This move brings more certainty +things are moving.”
I applaud pres trump for 2days tariff news he is a gr8 deal maker &will continue to bring fairness to US economy This move brings more certainty +things are moving
Wall Street has closed, clawing back major gains following Trump’s tariff retreat.
The S&P 500 closed up 9.5 per cent, the NASDAQ gaining 12.1 per cent and the Dow Jones soared by 7.8 per cent on Wednesday.
But the S&P 500 is still 3.7 per cent lower than it had been before Mr Trump’s so-called “Liberation Day.” The NASDAQ remains 2.7 per cent down and the Dow Jones is down 3.8 per cent.
After being asked why he paused his tariff measure, Mr Trump said: “I thought that people were jumping a little bit out of line.”
He added: “They were getting yippy. A little bit afraid.”
No 10 said it would continue to act “coolly and calmly”, after Donald Trump issued a major update on his tariffs.
It’s believed the UK will be unaffected by the changes.
A No 10 spokeswoman said: “A trade war is in nobody’s interests. We don’t want any tariffs at all, so for jobs and livelihoods across the UK, we will coolly and calmly continue to negotiate in Britain’s interests.”
The President said he noticed people were “yippy” this morning about the ongoing trade war. Yippy is understood to be related to yipping or yip – either ‘to cheep like a bird’ or ‘to bark with a sharp, high-pitched voice’.
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