Image source, Getty Images

We reported earlier on how the UK is locked in negotiations with the US to try to agree on an exemption to tariffs before the Wednesday deadline.

But how have other states been responding?

• China introduced a 10-15% tax on some US agricultural goods, and also targeted US aviation, defence and tech firms - warning it is ready for “any type” of war
• Canada imposed a 25% tariff on US steel, aluminium and other goods worth about C$60bn ($42bn; £32bn). Ontario Premier Doug Ford has also repeatedly threatened he’ll target US electricity sources
• Mexico’s President Claudia Sheinbaum has meanwhile adopted a "wait and see policy", and has so far delayed introducing retaliatory measures while negotiations with the US continue
• The EU will introduce tariffs from 13 April on US goods worth €26bn (£22bn). This covers items ranging from American alcohol to steel and aluminium production

Image source, Getty Images

As Trump warns that "all countries" will be hit by his planned tariffs, he has also threatened Russia with new taxes should the country's president Vladimir Putin not cooperate towards achieving a ceasefire in Ukraine.

In an NBC News interview, the US president suggested he was "very angry, pissed off" with Putin after he suggested Ukraine's President Volodymyr Zelensky did not have legitimacy to conduct peace talks.

He went on to threaten tariffs on countries buying Russian oil if Putin did not agree to end the fighting in Ukraine.

"If Russia and I are unable to make a deal on stopping the bloodshed in Ukraine, and if I think it was Russia's fault - which it might not be... I am going to put secondary tariffs... on all oil coming out of Russia," Trump told NBC.

But Trump later told reporters that he and Putin had "always gotten along well" and that he did not think Putin was "going to go back on his word".

• For more on Trump's evolving spat with the Russian president, our live page coverage has rolling updates

Henry Zeffman
Chief political correspondent

Image source, Getty Images

The UK “expects” to be affected by US tariffs and is not ruling out retaliatory tariffs in response, Downing Street has said.

The prime minister’s official spokesman says that talks on an economic deal between the two countries had been “constructive” but were likely to last beyond Wednesday, when President Trump is set to impose tariffs.

Downing Street says that while it is prepared to introduce tariffs of its own on the US, “a trade war with the US is not in anybody’s interests”.

The spokesman says: “When it comes to tariffs, the prime minister has been clear he will always act in the national interest and we’ve been preparing for all eventualities ahead of the announcement from President Trump, which we would expect the UK to be impacted by alongside other countries.

“We are having constructive discussions on a US-UK economic prosperity deal but we will only do a deal which delivers economic prosperity for the British people and we will only act in the national interest.”

Pressed on whether the government was hopeful of a deal to avert tariffs being reached by Wednesday, the spokesman replies: “We will continue to have these constructive discussions. I’m not going to put a timeframe on those discussions. Those discussions will likely continue beyond Wednesday… The president has been clear that he’s expecting to introduce global tariffs this week. We will wait to see the details and we will take a calm and pragmatic approach in response.”

He adds: “We rule nothing out in response.”

The stakes are high for Starmerpublished at 12:17 British Summer Time 31 March

12:17 BST 31 March

Faisal Islam
Economics editor

At face value, Trump's advisers are suggesting measures that could exceed the disastrous 1930s Smoot Hawley tariffs, which deepened the Great Depression.

They suggest little in the way of exemptions for the UK, for example.

They also add to reporting from Washington that key advisers are pushing for much harder tariffs, for example a universal tariff on all imports.

In a White House fact sheet published last week, it suggested a 10% tariff on absolutely every import could create nearly three million jobs and raise US living standards. This is a rather niche view in economics.

All of this raises the stakes for UK Prime Minister Keir Starmer's trade diplomacy with the president.

It is not clear at this stage if any exemptions have been secured, or what price American negotiators have extracted, for example a weakening of the UK tax on big tech companies.

Other jurisdictions such as the EU and Canada are preparing a range of retaliatory trade measures.

Trump adviser signals tariff plan might be bigger than expectedpublished at 12:03 British Summer Time 31 March

12:03 BST 31 March

Faisal Islam
Economics editor

Negotiators in other governments believe that the extent of the taxes on imports of goods into the US will be down to the president’s personal judgement in the next two days.

But his top trade adviser Pete Navarro pointed to huge revenues he said the tariffs would raise. The tax on all car imports could raise $100bn on a trade worth $240bn, Navarro said.

All the planned tariffs could raise $600bn per year, about a fifth of the value of total goods imports into the US, he said.

These figures do not include the likely significant impact on demand and supply, but they do send a clear signal, amplified by the president that the tariff plan might be even bigger than expected.

With just two days to go before the tariffs come into force, the UK is still locked in talks with the US about an exemption.

On Sunday, Downing Street said Prime Minister Sir Keir Starmer had "productive negotiations" with Trump in a phone call, adding that talks would "continue at pace".

The call came after sources at No 10 said the government was prepared to retaliate against US trade taxes if needed.

British negotiators are trying to win a last-minute exemption ahead of Trump's 25% levy on car imports, which is expected to come in on Wednesday.

Starmer has previously said he does not want to jump into a trade war with the US.

But the PM has also said the UK "reserves the right" to introduce reciprocal tariffs on the US if a deal to exempt the UK cannot be reached. The government has argued the UK has a relatively equal trading relationship with the US, compared to its other partners.

Mitchell Labiak
Business reporter

It is impossible to be sure any given event has caused a share price to move — because correlation is not causation — but as a general rule share prices move based on new information.

An investor who owns shares in a company does so based on how much they think that company is worth, and they do this using whatever information they can get their hands on.

If they like what they learn, investors will buy shares, causing prices to rise. If they don’t, they will sell shares, causing prices to fall.

Usually, information comes directly from a company’s financial results and its own predictions about its performance, but occasionally the information will come from beyond the company itself.

US President Donald Trump’s tariff announcements are the second kind of information. And they appear to be having a big impact.

Markets stalked by uncertainty as questions linger over Trump's tariffspublished at 11:22 British Summer Time 31 March

11:22 BST 31 March

Dharshini David
Deputy economics editor

Stock markets are having a bumpy start to the week ahead of President Trump's "Liberation Day" tariffs announcement.

They’re plagued by concerns about the impact those could have.

And the answer: nobody knows.

Given the twists and back-pedalling we've seen so far, its hugely unclear what the president will unveil. And who will retaliate with their own tariffs.

And even when we do get that announcement, it is unclear what the impact will be: will the importers affected try to absorb the taxes along the supply chain or pass on to customers?

Will affected exporters simply try to divert their goods elsewhere? Will consumers swallow higher prices or simply switch to other, cheaper products?

All of those reactions will influence how prices, profits, jobs and growth are impacted - and how much President Trump actually raises through these taxes.

All of these are impossible to pinpoint, policymakers' claims may be wide of the mark. In the meantime, the markets will be stalked by their nemesis: uncertainty.

Tariffs are taxes charged on goods imported from other countries.

Those announced so far target products including cars, aluminium and steel, and goods from Canada, Mexico and China.

Typically, tariffs are a percentage of a product's value. For example, a 25% tariff on a $10 (£7.76) product would mean an additional $2.50 charge.

Companies that bring the foreign goods into the country have to pay the tax to the government.

Firms may choose to pass on some or all of the cost to customers.

As we've been reporting, new comments from Donald Trump that he could broaden tariffs this week have rattled global stock markets today.

The US president suggested that new tariffs he is set to announce this week will hit all countries, not just those that have the biggest trade imbalances with America.

"You'd start with all countries," Trump told reporters on Air Force One. "Essentially all of the countries that we're talking about."

But he said his administration would be "far more generous" and "kinder" than the countries had been to the US.

The measures would come on top of tariffs already imposed by Washington on aluminium, steel and vehicles, along with increased levies on all goods from China.

Before taking office in January, Donald Trump suggested tariff is "the most beautiful word in the dictionary".

That belief has now started to play out in his policies.

Last week, the US president announced new import taxes of 25% on cars and car parts coming into America.

This is set to come into effect on the 2 April, joining an array of other taxes already announced by Trump:

• A 20% tax on all imports from China that is already in place
• 25% tariffs on imports from Mexico and Canada that Trump enacted earlier this month - though energy from Canada is charged at a lower 10% rate, and there is an exemption for goods shipped under the US-Mexico-Canada agreement (USMCA)
• A 25% tariff on all steel and aluminium imports into the US - active since earlier this month

Investors concerned over impact of broader tariffspublished at 10:17 British Summer Time 31 March

10:17 BST 31 March

Theo Leggett
International business correspondent

The Trump administration has already announced tariffs on a range of goods from Canada, Mexico and China.

Further levies have been placed on imports of steel and aluminium, while a tax of 25% on cars is due to come into effect this week, with major car parts also becoming subject to charges at a later date.

The administration has dubbed Wednesday "Liberation Day", and the president is expected to broaden the tariff net considerably.

In comments to reporters on Air Force One on Sunday, Trump suggested they would apply to goods from “all countries”.

Fears about the economic impact of such measures, and the possibility of retaliation by other countries has raised concerns among investors.

Uncertainty over whether or not the administration will actually impose the measures it announces has also been undermining confidence, analysts say.

Theo Leggett
International business correspondent

Image source, EPA

Stock markets in Europe fell in early trading, following on from steep falls on some Asian markets overnight.

The declines came amid growing speculation that new tariffs, or import taxes, to be introduced by the Trump administration could be much broader than previously anticipated.

In Frankfurt, the DAX index was down more than 1% in the first hour of trading.

In Paris, the CAC40 was down by a similar margin. In London, the FTSE 100 was also down.

This followed a sharp 4% decline on Japan’s Nikkei 225, with carmakers Toyota and Nissan among the biggest fallers.

South Korea’s Kospi was down 3%.

Adam Goldsmith
Live reporter

Image source, Reuters

Stock markets have fallen in Asia and Europe after President Donald Trump suggested that new tariffs he is set to announce this week will hit all countries, not just those that have the biggest trade imbalances with the US.

On Wednesday, which Trump has dubbed America's "Liberation Day", he will unveil a swathe of import taxes, on top of tariffs already imposed by Washington on aluminium, steel and vehicles.

But concerns about a trade war are unsettling markets and creating fears of a recession in the US.

Japan's Nikkei 225 benchmark share index closed more than 4% lower today, while the Kospi in South Korea ended down 3%.

In the UK, the FTSE 100 index was down about 0.8% in morning trade, while Germany's Dax index and France's Cac 40 were both down 1%.

Stay with us as we bring you analysis and updates on the markets, plus all the latest on Trump's tariffs and their potential impact.