The White House has insisted that trade partners ‘need the United States of America’ as global share markets fluctuate after China increased its tariffs on US imports to 125 per cent.
Donald Trump’s press secretary said over 75 countries had approached the US government to negotiate fresh trade deals in the wake of his “Liberation Day” measures.
“They’ve made it very clear. They need the United States of America. They need our markets. They need our consumer base,” she told a press briefing after China vowed to ‘fight to the end’ in the trade war.
China’s tariff hike, hitting back against Donald Trump‘s decision to hike duties on Chinese goods to 145 per cent, will come into effect on Saturday.
The US president said America was “doing really well” on its tariff policy on Friday afternoon while Chinese President Xi Jinping made his first public comments on the tariff war, urging the European Union to join China to “oppose unilateral acts of bullying”.
Reacting to the news, the US dollar index fell 1.2 per cent to 99.50, marking its lowest level since April 2022.
UK warned not to waste trade concessions to secure Trump deal as hopes of avoiding tariffs fade
Sir Keir Starmer has been warned against sacrificing too much in an attempt to secure a trade deal with Donald Trump, as hopes of avoiding tariffs appear to be fading.
Meanwhile, UK ministers appear to be increasingly downbeat about the prospect of a US-UK deal, with health minister Stephen Kinnock admitting that it might take some time. It comes despite officials previously insisting that talks were at an “advanced stage”.
Starmer holds calls with regional leaders about tariffs
Sir Keir Starmer has held calls with the first ministers of the devolved administrations and the regional mayors to “update” them on the Government’s approach towards global tariffs, Downing Street has said.
A Number 10 spokesperson said: “The Prime Minister led calls with the first ministers, deputy first minister and regional mayors today to update them on the UK’s Government’s calm, pragmatic and cool-headed approach to recent global tariffs.
“These discussions focused on how across the UK – whether in Belfast, Birkenhead, Blythe or Bute – partnership at all levels will be required to deliver for working people, in the national interest.”
India and US progress trade talks
India and the US have finalised terms of reference for talks over a bilateral trade agreement.
An Indian trade official said there was a possibility the countries could come to a “win-win” deal in the next 90 days.
“We are far ahead in trade talks with the U.S. compared to other countries … there are lots of possibilities in 90 days,” the official told Reuters.
India is one of America’s largest trading partners in Asia, but Donald Trump had hit the country with what he said was a “discounted” reciprocal tariff of 26 per cent.
Mr Trump had repeatedly accused India of “very very high tariffs” and called it the “tariff king” for its average levy on American goods of 52 per cent.
A senior JPMorgan Asset Management investment strategist said he has held back on some of his public comments on US tariffs due to concerns about the impact his full opinions would have on the Wall Street bank.
In a webinar titled “The 2025 Tariff Shock,” Michael Cembalest, chair of market and investment strategy and a Wall Street veteran, said he had not been able to fully express his views on the potential impacts of the tariffs on markets and economies.
“This is the first time I’ve ever had to do a call where I had to think about the things that I was saying, not just in terms of how they reflect our views on markets and economics,” Cembalest said in comments made towards the end of the webinar.
“But I had to think about how they might reflect on the firm and some of its colleagues at a time when people are being held accountable for their views and the things that they say in ways that they probably shouldn’t be.
“So I’ve said most of what I wanted to say on this call but not all of it.”
Trump optimistic on reaching deal with China, White House says
Donald Trump is optimistic about reaching a trade deal with China, White House press secretary Karoline Leavitt said on Friday, amid an escalating trade war between the two economic giants that has battered markets.
“The president has made it very clear he’s open to a deal with China,” Leavitt told a press briefing. “If China continues to retaliate, it’s not good for China,” she added.
‘They need the US markets to survive’, White House gives update on tariff negotiations
The White House has insisted that trade partners ‘need the United States of America’.
Donald Trump’s press secretary said over 75 countries had approached the US government to negotiate fresh trade deals.
“They’ve made it very clear. They need the United States of America. They need our markets. They need our consumer base,” she told a press briefing.
She added: “We’ve heard from South Korea. We’ve heard from Japan. The president has spoken to Vietnam. We have Italy coming to the White House next week.
“There’s a reason for that, Sean, and it’s because they need the United States of America and our business model and our markets to survive, and the President is using that leverage to our advantage.”
Deal on tariffs could be ‘weeks away’
Journalists in the White House briefing room say they have been told by government sources that the first deal with a country on a tariff deal is “weeks away”.
When asked whether this was true, Trump’s press secretary did not reveal which country this could be, but said: “Very good progress has been made.
“Jameson Greer was on television this morning, and I spoke to him, and he confirmed that more than 15 offers are already on the table, which is remarkable, in just a mere matter of days.
“And as I said earlier, we’ve heard from more than 75 countries around the world.”
‘He will punch back harder’ – Trump’s press secretary
Donald Trump’s press secretary has been answering questions on the president’s plans for Chinese tariffs.
Karoline Leavitt said Trump was “optimistic” about a deal being struck, but did not give reasoning behind this.
She added: “The President made it very clear, when the United States is punched, he will punch back harder.
“He hopes to make a deal that benefits the American worker and our companies that have been ripped off for far too long, and he’s finally taking bold and courageous action to do that.”
US to use tariff revenue to pay debts
When asked about plans the US government had for money raised by tariffs, Karoline Leavitt said: “The president has spoken about the trillions of dollars that he expects in revenue from tariffs, and how we can use it to pay down our debt and to ensure that we are no longer faced with a triple crippling national debt in the trillions that is going to bankrupt our nation for future generations.
“So that money coming back home will make America in the green rather than in the red, which any small business owner across the country, I believe, can appreciate.”
‘Phone ringing off the hook’ – White House on trade negotiations
Donald Trump’s press secretary Karoline Leavitt said the White House’s phones have been “ringing off the hook” as over 75 countries try to negotiate a trade deal with the US.
“More than 75 countries have now reached out to the Trump administration, eager to address the trade issues that have exploited America and hurt our workers,” she said.
“In the process, the phones have been ringing off the hook to make deals, and these countries wisely heeded president Trump’s warning not to retaliate, and as a result, they were rewarded with a 90 day pause and substantially lower reciprocal tariff rates during this period so potential solutions can be achieved.”