Jim Reed
Health reporter

Image source, Getty Images

Shares in the UK’s biggest drug companies, GlaxoSmithKline and AstraZeneca, have gone up today on the London stock market.

It comes after the White House said last night that the pharmaceutical sector, along with semiconductors, copper and some lumber products, would be exempt from "reciprocal" tariffs, external.

It's still not clear exactly what the exemption covers or how long it will last.

Medical products are one of the UK’s biggest export sectors, with shipments to the US worth £6.6bn last year.

Sam Francis
Political reporter

The UK has published a sample list of US goods that could face future tariffs, external in retaliation to the wave of new import taxes announced by President Donald Trump.

Being on the 417-page list does not necessarily mean a product will face tariffs, the government says.

The list covers 27% of imports from the US - picked because they would have a "more limited impact" on the UK economy, the Department for Business and Trade says.

The products range from pure bred horses and children's clothes to crude oil, firearms and bourbon.

Business Secretary Jonathan Reynolds has told MPs the government is consulting with UK exporters on which US products it could hit with retaliatory tariffs, in responses to the new 10% tariff on all UK goods entering the US.

This is a toughening of the government's stance after weeks of dismissing the idea of entering a trade war as it attempted to negotiate exemptions for UK industries in the new US tariff regime.

Reynolds told MPs "the best route to economic stability for working people is a negotiated deal with the US" but claimed all options remain on the table.

Image source, EPA

While Donald Trump has no public events this morning, he's posted on his Truth Social platform, appearing to make reference to his latest tariffs announcement.

"The operation is over! The patient lived, and is healing. The prognosis is that the patient will be far stronger, bigger, better and more resilient than ever before," Trump says.

"Make America great again!!!" he adds.

After opening down sharply, the main US indexes have continued to edge lower. The Dow Jones is now down 3.6%, the S&P 500 is 3.8% lower while the Nasdaq has dropped 4.8%

Just to revisit the situation in Europe, the UK’s FTSE 100 share index is down 1.6%, Germany’s Dax index is 2.5% lower while in France the Cac 40 has fallen 3.2%.

Earlier on Thursday, Japan’s Nikkei index closed down nearly 3%.

There has been a steep drop for US stocks in early trading on Wall Street at the New York Stock exchange.

Early indications show stock markets have fallen sharply, with tech companies and clothing retailers among the stocks that have been badly hit.

Brajesh Upadhyay
Reporting from Washington

Image source, Getty Images

Vice-President J D Vance is urging Americans to be patient as the US braces for the impact of Trump’s tariffs, saying: “Yes, this is a big change. I’m not going to shy away from it, but we needed a big change."

Speaking to Fox News, he warns Americans living on a tight budget that things aren't likely to get better “overnight".

But he adds: “We cannot keep going down the Joe Biden globalist pathway where we have $2 trillion of peacetime debt and deficits. For 40 years, we've had an economy that rewards people who ship American jobs overseas and raises taxes on American workers and we're flipping that on its head."

“They’re also going to benefit from the fact that foreign countries can’t take advantage of us anymore. That means their jobs are going to be more secure.”

Trump announced a 10% baseline tariff on all imports and higher, reciprocal taxes on several nations whom he called the “worst offenders” in terms of imposing tariffs on American goods.

Nick Edser
Business reporter

We’re seeing some hefty falls among individual US shares. Tech stocks saw big hits with Apple, which makes most of its products in China, down 9%.

Sportswear retailers - which source much of their products from Asia - also saw big falls. Lululemon slumped 10% and Nike was down 11%.

Other retailers also fell, with Best Buy slumping 12% and Target down 9%.

Motorbike maker Harley-Davidson - which was subject of retaliatory tariffs by the EU during Trump’s first term as president - fell 4.5%

Image source, Getty Images

Image source, EPA

Reacting to sharp drops in US stocks, White House Press Secretary Karoline Leavitt says: “To anyone on Wall Street this morning, I would say trust in President Trump."

Leavitt, speaking to CNN, is asked whether Trump could reconsider any of the tariffs before they go into effect on 5 April. She responds the tariffs are "not a negotiation".

"He’s always willing to pick up the phone to answer calls, but he laid out the case yesterday for why we are doing this.”

Companies involved in solar energy - which often rely on foreign manufacturing - are also down in early trading in the US.

Sunrun is down 7%, while Maxeon is down more than 3%.

Image source, EPA

It's a hectic start to the day's trading on Wall Street.

Household names that have dropped in value include Nike (down 11% at one point), Gap (18%), and Amazon (7%).

It's important to remember share values can bounce back through the day - so these drops may not be permanent.

We'll have more details soon.

The bell has sounded on Wall Street and trading is now officially under way in the US.

In the first few moments of trading the Dow Jones has fallen 2.8%, the S&P 500 is 3.3% lower, and the Nasdaq - which is dominated by tech stocks - has dropped 4.4%.

Nick Edser
Business reporter

Image source, Reuters

In a few moments, trading in US stocks will begin on Wall Street. The indication from the futures markets is that the main US stock indexes will all open down by about 2-3%.

It’s been quite a wild ride for US stocks over the past few months. Following Donald Trump’s election as US president shares rose on the hope that policies such as tax cuts would help to drive the economy.

But over the past few weeks these gains have been wiped out after the series of tariff announcements have led to fears they could stoke inflation and stall growth.

Graham Fraser
Senior technology reporter

What happens to products - like Apple's iPhone - that are made in China by American companies, asks Mike Heafield, 60, in Preston.

One eye-catching consequence of the tariffs announcement has been the impact on Apple, with its share price falling 7%.

The US tech giant has large manufacturing bases in some of the countries hit hardest by President Trump’s policy - notably China, which faces tariffs of 54%, and Vietnam (46%).

In 2019, when Trump was first in the White House, Apple was given Chinese tariff exemptions. Apple bosses will be hoping to work out a similar deal this time.

The global investment bank Citi said: "If Apple cannot get exempted this time and assuming Apple gets hit by the accumulative 54% China tariffs and does not pass it through, we estimate about 9% negative impact to the company’s total gross margin.”

In February, Apple committed to invest more than $500bn (£396bn) in the US over the next four years. At the time, Trump claimed Apple’s support for US manufacturing was partially a response to his trade policies, including tariffs.

The BBC has been speaking to Americans who are reacting to US President Donald Trump's sweeping tariffs.

A woman in Glendale, Arizona says it is "only right" that the US charges tariffs if other countries do, while in Washington DC, one man says he's already seen grocery prices increase.

What is the UK's position on Trump's latest tariffs?published at 14:04 British Summer Time 3 April

14:04 BST 3 April

Henry Zeffman
Chief political correspondent

Business Secretary Jonathan Reynolds’s comments in parliament this afternoon represent a toughening up of the UK’s stance towards the US.

It’s also striking, that for the first time we have something of a timeframe to work towards.

The consultation with business closes on 1 May.

By implication that sets a deadline, albeit a soft one, for completing the negotiation between the UK and the US on an economic agreement which would, among other things, reduce the tariffs President Donald Trump has just imposed.

Privately, those close to the talks on the UK side say that the deal is all but there. What they have no sense of at all, though, is when or indeed whether Trump might sign off on what his negotiating team have agreed.

If there is no sign of Trump’s assent by 1 May, the clamour for Keir Starmer to impose retaliatory tariffs may become overwhelming.

Imogen James
Live reporter

Image source, Reuters

It's past lunch time here in the UK, and our US audiences are waking up. Here's what you need to know, if you're just catching up with the news:

• On Wednesday, Trump announced a long list of tariffs on imports to the US
• A minimum base level of 10% will apply to most countries - including the UK - from 5 April, with higher duties on some of the America's biggest trading partners from 9 April
• Since then, there has been a lot of reaction from governments across the world

• Spain has already announced a €14.1bn package to support its economy, and the EU says it's preparing a "united" and "strong" response

• Prime Minister Keir Starmer says he is taking a "calm approach" and he will work on negotiations with the US, but his government said it will launch a consultation on possible retaliatory tariffs
• But it's not just being felt on an international level, as experts are warning the consumer will likely bear the brunt of price rises
• One man tells the BBC it's a "necessary evil" to solve America's hardships, but another woman says she is nervous watching her retirement funds dwindle in invested stock

Stick with us for more reaction and developments.

Marc Ashdown
Business correspondent

Paul Naldrett, 61, from Windsor, asks from the car industry aside, does the fact that the UK only has 10% tariffs actually create an opportunity for growing trade with the US given other G7 nations are impacted more significantly? Surely, we can take advantage of the EU’s 20% tariffs actually?

Some are referring to a "Brexit benefit" because the UK is only subject to 10% tariffs rather than the 20% being slapped on the EU.

Not only will that limit the pain felt by British businesses compared to their European neighbours, but it could present trading opportunities.

UK exporters to America could have a competitive edge, with US importers only facing half the tax by dealing with UK businesses instead of EU businesses.

British firms - and consumers - could also benefit from cheaper goods finding their way here instead of America if the extra costs prove insurmountable.

But, there are concerns about the impact that could have on homegrown industries if cheap products, possibly with lower standards, flood the UK market.

Chris Page
Ireland correspondent

Image source, Reuters

Ireland's prime minister, Taoiseach Micheál Martin, says the EU’s response to the US tariffs should be “considered and measured”.

He has given a news conference in Dublin, alongside Ireland’s European Commissioner Michael McGrath.

Among all EU member states, Ireland is the most reliant on the US as an export market.

Martin re-emphasised his government’s main strategic message that negotiation with the US should be prioritised, adding “a confrontation is in no-one’s interests”.

McGrath said the EU was “ready to enter meaningful negotiations without delay”.

Dharshini David
Deputy economics editor

Paul Miller, in Devon, asks about the impact of tariffs on US consumers, and whether the UK could, in fact, gain from them.

American shoppers could very much be the frontline casualties in this trade war, blighted by higher prices and less choice, regardless of the president’s rhetoric.

And that does mean that producers will seek out and take advantage of new markets.

We saw that in the president’s first term, when the likes of Vietnam and Malaysia took advantage of the tariffs he imposed on China to increase the amount they sold to America.

Ironically, they consequently are in the firing line now - and so will likely be vying to sell more to the UK – good for consumers, less so for competing businesses

Already, many producers are turning their sights beyond established customers – think whisky makers looking towards Asia. That is likely intensify.

President Trump's announcement may mean a redraft of the global trade map – and our own shopping lists.

As part of Your Voice, Your BBC News, our correspondents, experts and guests are answering your questions on tariffs.

Jenny White in London says she can't seem to wrap her head around why Trump would want to bump up prices for his own people by imposing these charges.

Speaking on the BBC News channel, Laura Davison, Bloomberg's political editor, says what's important to note first here is that it's the US importer that pays the tariff, a cost which may then be passed onto the US consumer.

"Trump's theory of the case - which most economists disagree with," she explains, is that by imposing higher trade barriers, the US will become "such an attractive market" that foreign exporters either lower their prices or agree to pay the US importer's portion of the tariff.

"But that is not how this works," Davison says.

She says what's more likely - and predicted by economists - is that the tariffs will "be a large driver of inflation".