Bart Hordijk, market analyst at Monex Europe, comments: "With these tariffs coming into effect, it is pretty clear the trade conflict is now real. The threats did not remain empty and Trump’s trade rhetoric proves to be more than just a negotiation gambit.

"The big question is now whether China will use their full firing power to fire back. China so far did not respond with a detailed plan of retaliation just yet, which is interesting and carries with it a ray of hope.

"The fact that the [People's Bank of China] seems to be using money market instruments as well as verbals to talk up the yuan and not use the currency as a weapon in a trade war seems to hint further at the fact the Chinese are still trying to let recent developments be part of a trade skirmish, not a trade war."

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More from Tom Enders, chief executive of Airbus. He justifies the Airbus intervention in the Brexit debate.

"We owe it to our stakeholders to be truthful and to tell them what the consequences could be and those would be very severe in case of an un-orderly or hard Brexit. That's for sure."

Should the UK be allowed in the French/German programme to develop a new combat jet, which is due to be in service in 2040?

"Absolutely there should be a place for the British and British industry in this programme as well. Keep in mind we're in the very early stages of this programme."

"There's still certainly time to come to an arrangement where the British side with all their experience and skills should be or could be part of it."

Sterling is having a mildly positive day. It's up 0.06% against the euro at €1.1314 and 0.17% higher against the dollar at $1.3245. Against the Japanese currency, the pound is up 0.06% at 146.395 yen.

Biggest faller on the London market so far is FTSE 250-listed Inmarsat, which has tumbled more than 10% after rejecting a takeover offer from US satellite group Echostar. The British firm said the $3.2bn bid "very significantly undervalued Inmarsat and its standalone prospects".

BBC Business Live

The US-China trade war has the potential to "escalate enormously", says Ross Denton, a partner in legal firm Baker McKenzie.

He told BBC Business Live that the US tariffs were playing into President Trump's domestic political strategy: "He's got the mid-terms coming up, he needs to play to his base."

The impact on the US economy should be "mixed", however.

"The steel and aluminium industries should see an increase in profits," he said, but other firms would feel the tariffs as "just taxes on their business", meaning that there could be a drop in US corporate profits overall.

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The annual rate of house price growth, external slowed to 1.8% in June, down from 1.9% in May, according to the latest figures from Halifax.

Image source, Reuters

Tom Enders, the chief executive of Airbus, has this to say ahead of key meeting of UK government ministers over Brexit:

"The sun is shining brightly on the UK, the English team is progressing towards the final, the RAF is preparing to celebrate its centenary and HMG (Her Majesty's government) still has no clue, no consensus on how to execute Brexit without severe harm."

Last month Airbus warned it could leave the UK if the country exits the European Union single market and customs union without a transition deal.

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With a 4.6% gain, shares in ITV are by far the biggest movers on the FTSE 100.

They are being helped by positive comments from analysts at Societe Generale. They have upgraded their view of the shares to 'buy' and reckon they could hit 220p.

Shares are currently trading at 180.1p.

Analysts are saying that the shares are relatively cheap and, given the takeover battle for Sky, ITV could also be a takeover target.

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ThyssenKrupp shares are up 4.4% this morning.

It's a bit of slap in the face for chief executive Heinrich Hiesinger, who has offered his resignation, less than a week after agreeing a merger with India's Tata Steel.

The move follows criticism by shareholders that ThyssenKrupp had made too many concessions to clinch the deal, which will create Europe's second-biggest steelmaker.

ThyssenKrupp's supervisory board is due to meet later today to take a decision on Mr Hiesinger's request to step down.

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Having long anticipated (and priced in) planned US tariffs, Asian stocks rebounded after they actually came into effect on Friday.

The US imposed a 25% levy on $34bn of US goods, paving the way for an outright trade war between the two economic powerhouses, which many think will hurt global trade and growth.

In China, Hong Kong's Hang Seng index was 0.38% higher at 28,289.05 and the Shanghai Composite was 0.49% higher at 2,747.23, having traded in negative territory earlier in the day.

Japan's benchmark Nikkei 225 closed up more than 1% at 21,788.14.

In the eve of the widely-anticipated 6 July deadline, US President Donald Trump also stepped up the trade rhetoric signalling the US could target more than $500bn of Chinese goods with tariffs.

"US posturing hints that the economic relationship will get worse before it gets better, and so we may not see a rebound towards diffusing this conflict for quite some time," said Nick Marro, analyst at the Economist Intelligence Unit (EIU).

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The FTSE 100 has opened higher. In early trading it's up 0.3% at 7,624.

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Rolls-Royce Holdings has agreed to sell its loss-making commercial marine business to Norway's Kongsberg for an enterprise value of £500m. The business has about 3,600 employees, mainly based in the Nordic region.

Net proceeds are expected to be about £350m to £400m after taking pension liabilities and other costs into account. The move comes as part of a wide-ranging restructuring plan for Rolls-Royce, which aims to save £400m a year.

Today Programme
BBC Radio 4

The BBC has found that if you sat down to read the terms of 15 popular sites and apps, it would take almost nine hours in total.

Spotify had one of the longest combined policies at 13,000 words, just shy of Shakespeare's shortest play, Comedy of Errors.

The minimum age to access these apps is 13, yet according to readability tests, their policies are harder to read than Dickens.

Frederike Kaltheuner is the data exploitation programme lead at Privacy International.

"It is very concerning that these polices are not readable. This is often the only place where you can find out what is happening to your data," she said.

"There's really no excuse for billion-dollar companies not to write clear and concise policies as required by law.

"The reason why their policies are so complicated is that they are using data in incredibly complicated and sometimes unexpected ways."

Asian markets seem unabashed by the latest bout of trade hostility between the US and China. Tokyo's Nikkei is up more than 1% and the Hang Seng in Hong Kong is nearly 0.9% higher.

Elon Musk, the man behind Tesla and SpaceX, also has a tunnelling company - The Boring Co.

He has some ideas how to rescue the boys trapped in the cave network in Thailand.

Perhaps our engineer readers would like to comment on his ideas? Email bizlivepage@bbc.co.uk.

Today Programme
BBC Radio 4

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Businesses that have been warning about the risks of Brexit are "chiefly" either based in the European Union or do a lot of business there, says David Jones, the former minister in the Department for Exiting the European Union.

He tells the Today Programme: "They don't actually constitute by any means the bulk of the economy of this economy.

"Of course they matter. But we must get this into proportion. They only account for 10 to 12% of the economy. The rest of the economy either does not export at all, or exports outside the EU.

"The cabinet when it meets today should consider the economy as a whole."

Image source, Reuters

About 150 business leaders will attend a dinner with Donald Trump when the US President visits the UK next week.

When the Financial Times , externalfirst reported the gathering, it wasn't known where the dinner would be held, prompting one attendee to comment: "It’s a bit like those 1980s warehouse raves where no one knows until just before.”

Anyway, The Times , externaldiscovered that the shindig would be at Blenheim Palace, and the UK's richest man, Ineos founder Sir Jim Ratcliffe, will be among those attending.

One person who won't be going along is Baroness Lane-Fox of Soho, the co-founder of lastminute.com, who turned down the invite. "I understand why the government have to entertain Trump, but I certainly don't have to," she told the Financial Times, external.

Today Programme
BBC Radio 4

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Some countries, such as Taiwan and South Korea, will be particularly vulnerable to the trade war between the US and China, says Shuang Ding, senior China economist with Standard Chartered.

That's because they use products from both the US and China.

However, some countries might benefit because they are alternative sources of imports. For example, Mexico and some Asian nations.

Image source, Getty Images

South Korean tech giant Samsung Electronics has estimated that its second-quarter operating profit will be a lower-than-expected 5.2% up on a year earlier.

Operating profit is expected to hit 14.8 trillion won ($13.2bn) for the April-June period. That's higher than the 14.07tn won in the same period in 2017, but lower than the record 15.64tn won of the previous quarter.

Sales are estimated at 58tn won, down 4.9% from 61tn won a year earlier.

Slowing smartphone sales are a big factor for Samsung, which sells its own models as well as making components for other firms.

Today Programme
BBC Radio 4

"The business lobby is pretty livid about these tariffs. It's an absolute own goal for US companies," said Megan Greene, chief economist at Manulife Asset Management.

She explains that a lot of the goods targeted by US tariffs are actually used by US firms, so their costs are being raised.

She said that tariffs will not address the big issue between the two nations.

"Tariffs are kind of a side show. What's fundamentally at the heart of the issue is that both countries want to be the global leader in artificial intelligence, machine learning and quantum computing."