Nikhil Inamdar
BBC News Business Correspondent, Delhi

Image source, Reuters

India has so far escaped the tariffs Donald Trump is imposing or threatening to impose on goods from various parts of the world.

In the past, however, he has called India a “tariff king” and a “big abuser” of trade ties and threatened reciprocal action if Delhi did not reduce taxes on US imports.

Those comments appear to have had the desired impact.

Prime Minister Modi’s recent budget slashed duties on a range of goods, including high-end motorcycles, which would include the iconic Harley Davidson. India’s finance secretary told local media this was a sign the country was “not a tariff king”.

At $36 billion, India’s trade surplus with the US isn’t high either.

But Delhi has turned increasingly protectionist under Modi.

A paper co-authored by the government’s former chief economic advisor found that since 2014, India had undertaken 3,200 tariff increases affecting about 70% of its imports.

While the average tariff rate is 14.7% for non-agricultural goods and 39.6% for agricultural goods, the tariffs India applies to World Trade Organization (WTO) members - at 18.1% in 2022, the latest year for which data is available - are the highest of any major world economy, according to US officials.

Jonathan Josephs
BBC business reporter

Do the countries that Trump imposes tariffs on have much recourse?

Of course, they can retaliate with their own tariffs or other trade measures, or they could go to the arbiter of international trade rules, the World Trade Organization.

China says it is going to file a case against Trump’s tariffs at the Geneva-based institution, but it is unlikely to get very far.

A couple of years ago, it won a WTO ruling that said tariffs on steel and aluminium during Trump's first term broke the rules.

However, the Biden administration ignored that ruling by insisting, as Trump had, that the tariffs were necessary for the US’s national security.

Given the US president has cited a national emergency as his justification for the latest tariffs, a similar course of events feels inevitable.

On top of that, the WTO’s ultimate body for resolving disputes, the Appellate Body, remains out of commission because it does not have enough judges.

That's because Trump and then Biden blocked the appointment of new judges.

Pascal Fletcher
BBC Monitoring in Miami

Mexican media and commentators have widely reflected the government’s indignant response to the Trump administration's decision to impose tariffs.

The "missile" from Donald Trump turned what seemed to be a commercial and economic crisis into “an eminently political topic, external”, said one editorial in the leading daily El Universal.

Trump’s description of the Mexican government as a “narco ally” struck a nerve, sparking debate over security policies and whether enough is being done to tackle cartels and corruption linked to them.

The Mexican government’s recent claims of increased successes and drug seizures “did not convince Trump,”, external said one commentator.

Others argued President Claudia Sheinbaum's administration should work with the US and seize the opportunity to declare all-out war on the cartels.

Some saw Trump's tariffs as part of a wider strategy to "contain China from Mexico, external", seeking to put a brake on China's growing investment and presence in Mexico as well as halt the supply of Chinese precursor chemicals for fentanyl production by Mexican cartels.

"So what the US leader is really worried about is not the trade deficit with his up to now partners Mexico and Canada, but the [deficit] that [the US] has with China, external," said one columnist.

Image source, Getty Images

As we've been reporting, Trump's tariffs could impact US businesses and consumers.

A US importer of Mexican fruit and vegetables has shared his concerns about the costs linked to tariffs due to take effect on Tuesday.

Jaime Chamberlain, president of Chamberlain Distributing, tells the BBC his company handles around five million boxes of produce a year, worth $40m to $60m annually.

He says they’ve been importing Mexican produce for over a century.

“It’s an industry that has worked extremely well with domestic farming in the United States and in Canada as well,” he says. “We are part of each other’s supply chain to feed North America.”

The importer warns that US consumers might end up covering the increased costs caused by tariffs.

He says he’ll need to ask his customers if they’d be willing to pay an extra 25% for their imports.

“If the customers are not in agreement with that, then we’ll have to take that away from the farmers’ returns,” he says. “It would be extremely difficult.”

EU officials have been responding swiftly to Trump's tariff threats.

German leader Olaf Scholz says the EU could respond with its own tariffs, but it’s better for both sides to reach a trade agreement.

In France, central bank governor Francois Villeroy de Galhau calls the tariffs "brutal" and says they "will increase economic uncertainty."

Spanish Economy Minister Carlos Cuerpo warns the EU not to be "naive." Speaking to Spanish radio RNE, he says the bloc supports a global market but must ensure its businesses can compete on equal terms with rivals abroad.

At a meeting of European leaders in Brussels, EU foreign policy chief Kaja Kallas tells reporters that "there are no winners in trade wars."

If there’s a trade war with the US, "then the one laughing on the side is China," she says, adding: "We need America, and America needs us as well."

Image source, epa

Jonathan Josephs
BBC business reporter

Image source, Reuters

President Trump’s threats of more tariffs on the EU show that, as well as “America First,” it might be “America alone”.

Whilst the US leader is right to say his country buys more from the EU than the other way round, he overstated the size of the difference.

Even the US’s own figures show it was $208bn in 2023, and when we get final figures for 2024, it will be a higher number, but not as much as the “over $300bn deficit” he talked about.

Under the Biden presidency, the US was joined by the EU and Canada in imposing tariffs on Chinese-made electric vehicles. There was also the Minerals Security Partnership and the EU-US Trade and Technology Council to try to address some of the most pressing issues in the global economy from a unified perspective.

But a more aggressive approach to the EU under Trump would signal that working in a perceived common interest against China and its influential government support for certain industries is not as important as America’s own concerns.

Image source, EPA

Stock markets are reacting this morning as significant tariffs on imported US goods to Canada, Mexico, and China are set to take effect tomorrow.

Here’s a quick recap:

• Starting on Tuesday, the US will introduce a 25% import tax on goods from Canada and Mexico, and a 10% tax on goods from China
• Canada says it will impose 25% retaliatory tariffs on the US. Mexico has announced it is preparing similar tariffs on US goods. Meanwhile, China says it will take "necessary countermeasures"
• Car makers’ shares have dropped across Asia and Europe as manufacturers prepare for the impact
• Shops in Canada are urging customers to "buy Canadian" as US products are pulled from shelves
• European markets fell shortly after opening, following Trump’s promise to impose sanctions on the EU “very soon”
• In the UK, Trump says trade relations have been “out of line” but believes it can be “worked out”

We’ll keep you updated throughout the day on how these tariffs might affect global markets.

Nick Edser
Business reporter

A couple of hours into the trading day in Europe, the German and French stock markets are both still down by about 2%.

The UK's FTSE 100 has fallen 1.3%, with nearly all shares in the index trading lower.

Russ Mould, investment director at online broker AJ Bell, says there is “a sea of red flashing on the markets”.

He says if the countries affected by tariffs introduce tit-for-tat measures, “that could result in higher inflation and put a stop to further interest rate cuts for the time being – exactly the opposite of what equity investors want to happen”.

“Higher prices could hurt demand, and there might be a trickle-down effect that knocks business and consumer confidence and feeds into weaker economic activity.”

Gabriela Pomeroy
Live reporter

Trump says he's using tariffs not just for economic reasons but also to "combat the scourge of fentanyl".

What is the fentanyl crisis?

Fentanyl is a legal painkiller, but it’s also made illegally and sold by criminal gangs. It’s much stronger than heroin.

In 2022, over 70,000 Americans died from fentanyl overdoses.

What’s China’s role?

US officials say chemicals used in fentanyl come from China. The White House says, external "Chinese officials have failed to take the actions" needed to stop this.

China denies any knowledge of illegal drug trade.

What’s Mexico’s role?

US authorities blame Mexican drug gangs for supplying fentanyl.

The White House accuses, external Mexican cartels of having "an intolerable alliance with the government of Mexico," but Mexico's president called this "slander".

What’s Canada’s role?

The US also says Mexican cartels are running fentanyl labs in Canada.

Canada’s prime minister argues less than 1% of fentanyl entering the US comes from his country.

Tariffs are taxes charged on goods imported from other countries.

Most tariffs are set as a percentage of the value of the goods, and in general, the importer pays them.

Increasing the price of imported goods is aimed at encouraging consumers to buy cheaper domestic products instead, to help boost their own economy's growth.

Donald Trump sees them as a way of growing the US economy, protecting jobs, and raising tax revenue.

The tariffs announced by the Trump administration over the weekend target the US's three largest trading partners - Canada, China, and Mexico.

Economic studies of the impact of tariffs, external, which Trump imposed in his first term in office, suggest most of the economic burden was ultimately borne by US consumers.

Image source, Reuters

China, Mexico and Canada have pushed back strongly against Trump's sanctions, but Republicans showed firm support for the policies over the weekend.

JD Vance, Donald Trump’s vice-president, wrote on social media that Mexico "sends ton of fentanyl into our country" and Canada "has seen a massive increase in fentanyl trafficking across its border". As a result, he said, the US is now in the "consequences phase".

Speaker of the House Mike Johnson said Trump is “positioning America to be safe and successful again” and called the tariffs “long overdue”.

Congresswoman Marjorie Taylor Greene also backed the move, saying on social media: “Tariffs are a powerful, proven source of leverage for protecting our national interest.”

But not all Republicans agree. Senator Mitch McConnell warned the tariffs would raise costs for Americans, asking: "Why would you want to get in a fight with your allies over this?"

Thomas Copeland
BBC News

Image source, Reuters

As we've been reporting, Canadian shops are encouraging customers to shop locally in response to Trump's 25% import tariff on Canada.

Here's what one customer had to say.

Carole Chandler, 67, from Nova Scotia, tells the BBC she’s had enough of Donald Trump’s rhetoric.

"Bullying tactics are not our style."

She says she’ll "boycott all American products as much as possible", even cancelling a planned holiday to Florida.

Chandler is also firm about her Canadian identity, responding to Trump’s recent suggestion that Canada could become the 51st US state – an idea Prime Minister Justin Trudeau has firmly rejected.

"I love America and Americans, but I don't want to be one," she says. "Jokes about a 51st state are fine, but it feels like more than a joke this time."

As we mentioned earlier, Canadians at basketball and ice hockey games over the weekend made their feelings about Trump's tariffs clear by booing the US national anthem.

Now, with imports from the US set to be charged at 25% in Canada tomorrow, we are also seeing some Canadian stores beginning to remove American products.

Image source, Reuters

Image source, Reuters

Image source, Reuters

Jagdip Cheema
Business reporter, BBC News

Image source, Reut

It’s not just global equity markets seeing falls after Donald Trump introduced new tariffs over the weekend; the crypto market is also experiencing a sell-off.

According to data from website CoinMarketCap, some $600bn has been wiped off major cryptocurrencies since Saturday’s tariffs were announced, as investors decided to pull their money out of "riskier" assets.

Donald Trump has pledged to turn the US into the "crypto capital of the planet" during his campaign.

When Trump took office on 21 January, Bitcoin was priced at just over $107,000. Earlier this morning, it dropped below $96,000 as the crypto rally appears to be cooling off.

Michael Race
Business reporter, BBC News

Image source, EPA-EFE/REX/Shutterstock

Some 20 EU member states exported more to the US than they imported in 2023. According to Eurostat, the EU's statistics agency, the country with the largest surplus was Germany, followed by Italy and Ireland.

This suggests, if tariffs were to be imposed on the EU, Germany – the EU’s largest economy – could be hit hardest. More than 30% of all the EU’s transatlantic goods exports were from Germany in 2023.

Most of Germany’s exports were cars and machinery. Trump has repeatedly complained about the EU’s car exports to the US, with few vehicles being shipped the other way.

Trump believes by imposing tariffs he can boost the US economy, protect jobs and raise tax revenue. It’s all part of his America First pledge.

But a lot of economists have warned tariffs just hit businesses and consumers on both sides, especially given the likelihood of an EU response, as things just become more expensive.

The president also wants the EU to buy more of its oil and gas from the US. Since the EU has shifted away from Russian fossil fuels, the US became its largest supplier of liquefied natural gas (LNG).

Michael Race
Business reporter, BBC News

Image source, PA Media

According to Donald Trump, the UK has been “out of line”, but he thinks it can be “worked out”.

The UK’s Business Secretary, Jonathan Reynolds, has said that he thinks the UK should be excluded from any tariffs because the US has not got a goods trade deficit with the UK, meaning it currently exports more products to the UK than it imports.

“I think we’ve got an argument to engage with,” Reynolds told the BBC.

The prospect of higher taxes being introduced on imports to the US is concerning many world leaders because it will make it more difficult and expensive for companies to sell goods in the world’s largest economy.

But Trump sees the tariffs as a way for goods to be produced in the US rather than abroad. If companies want to import goods, he argues they should pay a fee.

Shares in car makers are seeing the biggest falls in Europe, with the motor industry set to be one of the sectors most affected by the planned tariffs.

Stellantis – whose brands include Chrysler, Citroen, Fiat, Jeep and Peugeot – saw its shares drop by nearly 6%.

Among the other European car giants, VW dropped 5.7%, Mercedes was 4.4% lower and BMW was down 4%.

Elsewhere, shares in drinks maker Diageo fell 3%. The company is seen as being exposed to the tariffs as it exports tequila from Mexico to the US.

Jessica Parker
BBC News Berlin correspondent

A big question for the EU is whether Donald Trump intends to slap on a broad, universal tax on goods or a more targeted set of tariffs.

The latter may sound preferable, given it would affect fewer exports, but that option brings its own problems.

Last month, I spoke to Wolfgang Niedermark – who’s on the board of Germany’s Federation of German Industries (BDI). He warned that targeted tariffs could complicate EU’s response: "It might start a game of running for exemptions. That would be a threat for our unity."

He urged the EU to seek co-operation with the US "such as buying more products from the states like liquid natural gas (LNG)".

Germany’s car market is seen as particularly vulnerable in terms of potential tariffs, even if its big players already have production sites set up in the US.

This all comes at a bad time for the EU’s largest economy. Last week, Germany cut its growth forecast with Economy Minister, Robert Habeck, saying the country was "stuck in stagnation".

Nick Edser
Business reporter

Trading on European stock markets has just got under way and, as expected, they have fallen in reaction to Donald Trump’s tariff plans.

The main share indexes in both France and Germany are down by about 2%, while in London the FTSE 100 share index fell 1.2%.

Shares in German carmaker VW have dropped 5%. The company has operations in Mexico which leaves it exposed to the impact of the tariffs.

Image source, USA Today sports

Canada:

Canadians at ice hockey and basketball games booed the US national anthem over the weekend as the 25% tariff loomed.

Away from sports venues, Prime Minister Justin Trudeau set out retaliatory tariffs of 25% on American goods from beer to household appliances.

As for suggestions that Canada might become the 51st US state, Trudeau said simply: "It’s not going to happen."

Mexico:

Mexico also vowed to retaliate, with President Claudia Sheinbaum saying on social media: "I've instructed my economy minister to implement the plan B we've been working on, which includes tariff and non-tariff measures in defense of Mexico's interests."

China:

China says the threatened 10% tariffs are a "serious violation" of World Trade Organization rules - the country is filing a lawsuit with the WTO against the US for its "wrongful practice".

Beijing also says it will take "necessary countermeasures to defend its legitimate rights and interests" - it has not yet stated whether this might be in the form of tariffs.

The EU:

So far, Trump has not suggested what tariffs on EU goods might look like.

But a European Commission spokesperson says the EU will "respond firmly to any trading partner that unfairly or arbitrarily imposes tariffs on EU goods".