Tariffs reside: China hits again at US as stand off towards Trump continues amid international market rebound
China has hit back at the US as its stand off against Donald Trump shows now sign of ending – but, despite the chaos, global markets have rebounded amid days of volatility.
In a humiliating U-turn, the US president made the shocking decision to pause the hefty duties he had just imposed on dozens of countries, bringing relief for battered global stock markets on Thursday.
However, he ratcheted up the pressure on China, immediately hiking the tariff on Chinese imports to 125 per cent from the 104 per cent level that kicked in on Wednesday.
But Beijing slapped 84 per cent tariffs on US imports on Wednesday in return, and may again respond in kind after repeatedly vowing to “fight to the end” in the escalating trade war between the world’s top two economies.
Despite neither side appearing to back down in the US-China stand off, global markets have rallied in relief at the 90-day freeze on tariffs imposed on other countries.
The US benchmark S&P 500 index closed 9.5 per cent higher on Wednesday, and the relief continued into Asian trading on Thursday with Japan’s Nikkei index surging more than 8 per cent, while even Chinese markets like the CSI 300 and Hong Kong’s Hang Seng Index showed gains. And the UK’s FTSE 100 soared by more than 6 per cent after stock markets opened in London.
However, all countries other than China will still face what Mr Trump calls his “baseline” 10 per cent tariff, and the UK government says it does not expect those to be paused.
China vows to continue to take countermeasures against US if necessary
China has vowed to continue to take countermeasures against the US if necessary.
The Chinese commerce ministry said today: “China has taken, and will continue to take, resolute countermeasures to safeguard sovereignty, security and development interests.”
China says it does not fear more US tariff threats
China is not interested in a fight but will not fear if the US continues its tariff threats, the Chinese foreign ministry said in reply to questions about the US tariffs on Thursday.
“The US cause doesn’t win the support of the people and will end in failure,” ministry spokesperson Lin Jian said at a regular press conference.
China will not sit back and let the legitimate rights and interests of the Chinese people be deprived, Lin added.
China ‘open’ to dialogue with US but calls for talks based on ‘mutual respect’
China has said it is open to dialogue with the US but this must be on the basis of mutual respect and equality.
Chinese commerce ministry spokesperson He Yongqian also told a regular press briefing on Thursday that “there is no winner in a trade war”, calling protectionism a “one-way road”.
ANALYSIS: The FTSE 100 resurgence is on
The Independent’s Business and money editor Karl Matchett writes:
Ping! Like that, the FTSE 100 resurgence is on. In (very) early trading, London’s main index is showing a 6.2pc rise as retail investors no doubt join in the buying frenzy, if they have any deployable cash left after contributing to yesterday’s evening’s S&P 500 rocket anyway.
A whopping 97 companies are in the green right now, with only supermarkets left behind after Tesco issued a lowered profit warning this morning. They (-3.76pc), Sainsburys (-4pc) and Marks and Spencer (-0.2pc) are the only FTSE 100 firms in the red. At the other end of the scale, Barclays is 17.7pc up.
China warns it ‘will follow US to the end’ as it hints at further measures in escalating trade war
China has warned Donald Trump that “if the US insists on its own way, China will follow it to the end” as the country hinted at imposing yet more measures in the escalating trade war between the world’s top economies.
The Chinese commerce ministry said that “pressure, threats and blackmail are not the right way to deal” with China as it vowed to follow the US “to the end”.
The Chinese foreign ministry today again accused the US of “bullying” and said that taking further measures is “aimed at protecting our own sovereignty, security and development interests”.
UK’s FTSE 100 soars by 6% after stock markets open in London
The UK’s FTSE 100 has soared by more than 6 per cent after stock markets opened in London.
The index was gaining about 475 points in early trading on Thursday, following a significant rally for markets in the US and Asia.
The sharp gains come after US President Donald Trump announced he would be pausing tariffs on most countries, excluding China, for 90 days.
Europe and US can reach “win-win” trade deal, Greek PM insists
Europe and the US could reach a “win-win” trade deal which could be beneficial to both parties, Greek Prime Minister Kyriakos Mitsotakis said in an interview published late on Wednesday.
“On the European front there is a possibility of finding a win-win solution when it comes to trade, a solution which will be mutually beneficial,” Mitsotakis told US news network Breitbart from his office in Athens.
The European Union on Wednesday agreed to launch its first countermeasures against US tariffs next week. But European Commission President Ursula von der Leyen on Thursday welcomed Trump’s announcement of the pause.
Mitsotakis said that there was “still room for negotiations” with the US before Europe considered any major reciprocal response beyond what had been announced on Wednesday.
“Europe and the European market is very important for the US and US is important for Europe and we need to work out a solution.”
EU says Trump tariff pause will help stabilise global economy
US President Donald Trump’s dramatic decision to pause hefty tariffs on dozens of countries was an important step towards stabilising the global economy, European Commission President Ursula von der Leyen has said.
Ms Von der Leyen, who heads the EU’s executive arm, said on Thursday that the bloc remained committed to constructive negotiations with the US, with the goal of achieving “frictionless and mutually beneficial trade”.
“Clear, predictable conditions are essential for trade and supply chains to function,” she said in a statement on X.
Tariffs were taxes that only hurt businesses and consumers, she said, adding: “That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”
She added: “At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87 per cent of global trade and share our commitment to a free and open exchange of goods, services, and ideas.”
She also said that the Europe was stepping up work to lift barriers in its single market.
“This crisis has made one thing clear: in times of uncertainty, the single market is our anchor of stability and resilience,” she said.
FTSE 100 opens up more than 1 per cent today
The FTSE 100 index has opened up more than 1 per cent today in London.
The UK benchmark is rallying as global markets rebound after Donald Trump’s chaotic tariffs reversal.
ANALYSIS: Futures show sharp rise for FTSE 100 when it opens
The Independent’s Business and money editor Karl Matchett writes:
Futures are showing a sharp rise for the FTSE 100 in excess of five per cent when it opens – not quite the rise that Japan or the US’ main indices showed overnight, but then, the FTSE also didn’t collapse in the same way either.
It’s another example of the flip-flopping in the markets that a single word – or social media post – from the president can cause.
Look beyond the stock markets and particularly at smaller businesses in the US and you wonder how on earth they are supposed to keep up with such rapid changes; for today at least, though, it appears we’ll get to see plenty of green all around.
