Donald Trump’s trade tariffs on what he calls “the worst offenders” come into effect at 5am UK time, with China facing by far the biggest levy.
The US will hit Chinese imports with 104% tariffs, marking a significant trade escalation between the world’s two largest superpowers.
At a briefing on Tuesday, White House press secretary Karoline Leavitt said Donald Trump “believes that China wants to make a deal with the US,” before saying: “It was a mistake for China to retaliate.
“When America is punched, he punches back harder.”
Please use Chrome browser for a more accessible video player
After Mr Trump announced sweeping levies last week – hitting some imported goods from China with 34% tariffs – Beijing officials responded with like-for-like measures.
The US president then piled on an extra 50% levy on China, taking the total to 104% unless it withdrew its retaliatory 34% tariff.
China’s commerce ministry said in turn that it would “fight to the end”, and its foreign ministry accused the US of “economic bullying” and “destabilising” the world’s economies.
What we learn from video of captured Chinese national in Ukraine – and the serious questions it raises
What China could do next as Trump’s tariff war ramps up
Asian markets rally as China vows to ‘fight to the end’ over Trump’s new tariff threat
‘Worst offender’ tariffs also in effect
Alongside China’s 104% tariff, roughly 60 countries – dubbed by the US president as the “worst offenders” – will also see levies come into effect today.
The EU will be hit with 20% tariffs, while countries like Vietnam and Cambodia see a 46% levy and 49% rate respectively.
The UK was not included on this list, and instead saw a “baseline”, worldwide 10% tariff on imported goods in effect from last Saturday.
At the weekend, Sir Keir Starmer promised the government was ready to “shelter British businesses from the storm”.
Please use Chrome browser for a more accessible video player
Since the tariffs were announced last Wednesday, global stock markets have plummeted, with four days of steep losses for all three of the US’ major indexes.
As trading closed on Tuesday evening, the S&P 500 lost 1.49%, the Nasdaq Composite fell 2.15%, and the Dow Jones Industrial Average dropped 0.84%.
According to LSEG data, S&P 500 companies have lost $5.8tn (£4.5tn) in stock market value since last Wednesday, the deepest four-day loss since the benchmark was created in the 1950s.
Read more:
What China could do next as Trump’s tariff war ramps up
Chancellor to hold tariff crisis talks with top City executives
Follow our channel and never miss an update.
Trump signs coal orders
Meanwhile, the US president signed four executive orders to boost American coal mining and production.
The directives order:
• keeping some coal plants that were set for retirement open;
• directing the interior secretary to “acknowledge the end” of an Obama-era moratorium that paused coal leasing on federal lands;
• requiring federal agencies to rescind policies transitioning the US away from coal production, and;
• directing the Department of Energy and other federal agencies to assess how coal energy can meet rising demand from artificial intelligence.
Read more:
The good, the bad and the ugly in Trump’s coal plans
Be the first to get Breaking News
Install the Sky News app for free
At a White House ceremony, Mr Trump said the orders end his predecessor Joe Biden’s “war on beautiful clean coal,” and miners “will be put back to work”.
