Donald Trump has claimed that Sir Keir Starmer “was very happy” with Washington’s new 10 per cent tariffs on UK goods, as the prime minister warned of a “new economic era”.
“We have a very good dialogue. I think he was very happy about how we treated them with tariffs,” the US president told reporters on Air Force One, adding that he was open to negotiations if countries offer “something that is so phenomenal”.
After bleeding to its lowest level since mid-January on Thursday, the FTSE 100 fell a further 0.5 per cent on Friday morning, as Asia-Pacific markets opened in the red for a second consecutive day – with Japan’s Nikkei falling 1.85 per cent and Australia’s S&P/ASX 200 index tumbling 2 per cent to an eight-month low. Overnight, S&P 500 companies lost a combined $2.4trn in stock market value, their biggest one-day loss since the Covid pandemic in March 2020.
Sir Keir warned on Thursday that – as with defence and security – the world was at the beginning of a “new economic era” in which “we have to act and lead differently”, describing the response to Mr Trump’s tariffs as “not just a short-term tactical exercise”.
Watch: David Lammy says US return to protectionism is regrettable
Foreign secretary David Lammy has said he regrets the return to protectionism in the United States.
Speaking as he arrived in Brussels to meet his Nato counterparts, Mr Lammy told reporters: “The United Kingdom, like France, is a great maritime nation.
“We are a nation that believes in open trade, and I regret the return to protectionism in the United States, something that we’ve not seen for nearly a century. As you know, we are consulting with business and industry. At this time, we are engaged in discussions with the United States to strike an economic agreement and an economic deal.
“And of course, we have been absolutely clear that all options are on the table as we ensure the national interests of the British people, who will be very concerned at this time about how this affects the bottom line for them and their economic welfare.”
Jeremy Hunt calls for ‘Singapore-on-Thames’ in wake of Trump tariffs
Tory former chancellor Jeremy Hunt has revived the Brexiteer call to turn Britain into “Singapore-on-Thames” by making the UK a low-tax nation welcoming free trade in response to Donald Trump’s tariffs.
Writing in The Telegraph, Mr Hunt urged Sir Keir to “resist the siren song of protectionism”, saying: “Countries like Singapore demonstrate, openness can still deliver excellent results. Over the last half century, its living standards have grown five times faster than ours.
“Those who deride the idea of “Singapore-on-Thames” fail to understand that the heart of their success has not been a harder-edged social policy but the building up of internationally competitive businesses through willingness to trade.
“But Singapore didn’t invent free trade. That honour belongs to Britain. Even if others turn their backs on it, we should remember the benefits of one of our greatest gifts to the world.”
UK braces for more market chaos today
The UK is braced for more market chaos on Friday as the government considers its response to Donald Trump’s tariffs.
The FTSE 100 fell to a three-month low yesterday after the news that British exports to the US would face a blanket 10 per cent tariff.
An “indicative list” published by the British government named some American products that could be targeted in its response, including bourbon whiskey, motorcycles, guitars and jeans.
But an immediate response is unlikely as trade secretary Jonathan Reynolds told MPs he would hold a four-week consultation on retaliatory action.
The government still hopes for an “economic deal” with the US to secure some exemption from the tariffs, with prime minister Sir Keir Starmer promising businesses that he would “fight for the best deal for Britain”.
Trump claims Starmer ‘very happy’ with UK tariffs
Donald Trump has claimed that Sir Keir Starmer “was very happy” with Washington’s new 10 per cent tariffs on UK goods.
“We have a very good dialogue. I think he was very happy about how we treated them with tariffs,” the US president told reporters on Air Force One.
Mr Trump added that he was open to negotiations on the tariffs if countries offered “something that is so phenomenal”.
Speaking at the launch of his local government campaign in Chesterfield on Thursday, Sir Keir said that the world was at the beginning of a “new economic era” in which “we have to act and lead differently” – describing the response to Mr Trump’s tariffs as “not just a short-term tactical exercise”.
The prime minister said: “It is the beginning of a new era, we need to understand that, just as we have for defence and security, we have to understand the changing world when it comes to trade and the economy.”
Turkey wants to negotiate 10% tariff
Turkey wants to negotiate with the US to lift the 10 per cent additional tariffs announced by president Donald Trump, trade minister Omer Bolat said this morning.
“We want to discuss the issue in negotiations with the US Department of Commerce and Trade Representative… since there is a $2.4bn surplus in favour of the US in trade between the two countries for 2024,” he said in a statement.
IMF says Trump tariffs are a ‘significant risk’ to global economic outlook
Donald Trump’s sweeping tariff campaign presents a “significant risk” to the global economic outlook “at a time of sluggish growth”, the head of the International Monetary Fund has warned.
Managing director Kristalina Georgieva said officials were still assessing the macroeconomic implications of the tariff plans Mr Trump announced this week.
“It is important to avoid steps that could further harm the world economy,” she said as global markets bled yesterday.
“We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty,” she added.
Watch: Keir Starmer says he will ‘fight’ to secure deal with US
Trump closes China tariff loophole used by fast fashion retailers
Donald Trump has signed an executive order to shut down a trade loophole known as “de minimis” that has allowed low-value packages from China and Hong Kong to enter the US free of duties.
The move appears to be a massive blow to fast-fashion companies such as China-based Shein and Temu, which managed to rapidly expand in the US through the almost century-old de minimis rule. This tariff exemption will end on 2 May, the White House said on Wednesday.
More here.
Asian shares continue to slide
Asian shares slid further today after US president Donald Trump’s tariffs sent shudders through financial markets at a level of shock not seen since Covid-19 pummelled world markets in 2020.
Mr Trump announced a minimum tariff of 10 per cent on global imports, with the tax rate running much higher on products from certain countries like China and those from the European Union. Smaller, poorer countries in Asia were slapped with tariffs as high as 49 per cent.
Tokyo’s Nikkei 225 lost 4.3 per cent, while South Korea’s Kospi sank 1.8 per cent. The two US allies said they were focused on negotiating lower tariffs with Trump’s administration. Australia’s S&P/ASX 200 dropped 2.2 per cent.In other trading early this morning, the US dollar fell to 145.39 Japanese yen from 146.06.
The yen is often used as a refuge in uncertain times, while Trump’s policies are meant in part to weaken the dollar to make goods made in the US more price competitive overseas. The euro gained to $1.1095 from $1.1055.
Taiwan’s leader says he will support impacted industries after ‘unreasonable’ tariffs imposed
Taiwan’s president Lai Ching-te said he will offer the “greatest support” to industries impacted by the new tariffs.
Mr Lai acknowledged that Taiwan had a trade surplus with the US, but that much of it came from Taiwanese industries trying to fulfill the US demand for Taiwan’s information technology products.
“We feel that this is unreasonable and are also worried about the subsequent impact these measures may have on the global economy,” Mr Lai said in a statement on Facebook.
The president said he instructed premier Cho Jung-tai to work closely with industries that are impacted and to communicate with the public about their plans to stabilise the economy.