Lucy Hooker
Business reporter

Image source, Getty Images

Last night, Trump signed an executive order to start the process of establishing a US sovereign wealth fund.

These are investment accounts owned by countries, allowing surplus income from annual budgets to be used in a way that benefits future generations.

For instance, Saudi Arabia has made use of its fund to invest in the sporting world, controlling Newcastle United and bringing some of the biggest footballers in the world to the Middle East.

Trump has yet to clarify where the money for this new fund might come from, but during his election campaign, he suggested that it could be funded by “tariffs and other intelligent things”.

And, after signing the order, the president suggested that the fund could be used to solve the problem of TikTok - a Chinese owned company - after he delayed a ban on the platform’s use in the US.

"We're going to be doing something, perhaps with TikTok, and perhaps not," Trump said earlier. "If we make the right deal, we'll do it. Otherwise, we won't... we might put that in the sovereign wealth fund."

• Want to know more? Read our separate news story, which looks at where the money might come from and how Congress would need to approve Trump's new fund

Michael Race
Business reporter

UK-based drinks giant Diageo - which makes Guinness, Johnnie Walker, Baileys and Smirnoff - warns tariffs imposed by the US on Mexico and Canada “could very well” impact its business. Last-minute negotiations yesterday subverted the chance of a North American trade war for 30 days.

The firm suggested its spirits trade could be affected – it counts tequila Don Julio and also Crown Royal, a Canadian whisky, among its brands.

The spirits sector has been largely free of tariffs since the 1990s and the potential of import taxes from America’s neighbours makes things complicated, since specific drinks like tequila and Canadian whisky can only be produced in their designated countries.

Debra Crew, Diageo’s chief executive says: “We will ... continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry.”

The US represents around a third of Diageo's sales.

Image source, Getty Images

A former US ambassador to the EU has warned the UK and its European partners that tariffs will be used by the US as a negotiating tactic during Donald Trump's presidency.

Trump has warned that similar measures to those placed on China could hit the EU "pretty soon" and says that the UK is "out of line" - though added he is sure this "can be worked out".

Now, the president's former US ambassador to the EU Gordon Sondland tells Newsnight: "We've had a list of demands and requests of all of these friends for years and in some cases decades.

"The results are similar every time: 'we'll think about it', they'll get back to us, and Donald Trump's had enough of that."

As a result, he says that the tariffs are a very real threat, "designed to get attention".

"If necessary they'll remain in place until they have some economic bite," he adds. "It really gets people off their derrières and to the table, to start to solve problems."

In response to the threat of tariffs, European Commission President Ursula von der Leyen said the EU wanted a constructive dialogue with the US but was ready to respond firmly if it was "unfairly" targeted.

Laura Bicker
China correspondent, in Beijing

Beijing has made its decision. It has decided to hit back – or at least threaten to retaliate with its own tariffs.

The new taxes on US imports would not take effect until Monday 10th February, so there is some time to stop a spiralling tit for tat trade war.

There are signs China is in listening mode. In several statements, Beijing has called on Washington to enter negotiations and “meet China halfway”.

This would suggest the door is open to talks and the two leaders are scheduled to speak later this week, according to the White House.

But it will be far more difficult for the US to do a deal with China than Mexico and Canada and it much will depend on what Mr Trump is asking.

Beijing is Washington’s chief economic rival and cutting China off from major supply chains has been a goal of the Trump administration.

If Donald Trump asks too much, President Xi might feel he can walk away.

For now, China is building up its bargaining power – but there will be limits on just how far Beijing is willing to be pushed.

Image source, Getty Images

We've been hearing more about China's thinking from Professor Henry Wang from the Beijing-based Centre for China and Globalisation. He was in the room for one of Trump's meetings with Xi during the US president's first term.

"Of course they [China] have to respond somehow," Wang tells the BBC's Today programme.

But the categories of goods slated for tariffs is selective, he says. "I don’t think this is a big way of retaliating."

Wang points out that China is still celebrating the Lunar new year holidays, but "when the bureaucrats come back they will start talking. We are expecting high levels talks to happen."

• Our correspondent in Beijing, Laura Bicker, says talks between President Trump and President Xi could happen this week - we'll have more from Laura soon

Image source, getty

As part of its retaliation against Trump's tariffs, Beijing has added two US companies to its "unreliable entity" list.

The two "blacklisted" companies are PVH Corp, the holding company for brands including Calvin Klein and Tommy Hilfiger, and US biotechnology firm Illumina.

In a statement, China's commerce ministry accused the firms of "discriminatory measures against Chinese enterprises".

It also said the move was designed to "safeguard national sovereignty, security and development interests, in accordance with relevant laws".

Firms added to the list may face a number of sanctions including fines and having the work visas of their foreign employees revoked.

Image source, Getty Images

Beijing says it has followed through with its warning that it would file a complaint with the World Trade Organization (WTO) in response to the new tariffs by the Trump administration.

In a statement, China's Commerce Ministry says it is resorting to the WTO's dispute settlement "to safeguard its legitimate rights and interests".

"The U.S. imposition of additional tariffs on Chinese products severely violates WTO rules. This action is egregious in nature and represents a typical example of unilateralism and trade protectionism," it adds.

Image source, Reuters

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.

So, a product imported to the US from China worth $4 would face an additional $0.40 charge applied to it (as a reminder, the 10% US tariff on Chinese goods began at 00:01 ET / 05:01 GMT).

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.

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

But, economic studies of the impact of tariffs, external - which Trump also imposed during his first term in office - suggest the measures ultimately made prices higher for US consumers.

Image source, Reuters

A day can be a long time in politics, and this time yesterday Canada and Mexico were readying themselves for a North American trade war.

As of this morning, though, only China is being hit by increased import charges. They’ve now vowed to retaliate after 10% tariffs were placed on Chinese imports into the US earlier today.

Here’s how we got here:

• On 1 February a White House statement said Donald Trump would be implementing a 25% additional tariff on imports from Canada and Mexico and a 10% tariff on China
• He said this was to hold the countries accountable on halting illegal immigration and stopping drugs flowing into the US
• Mexico and Canada vowed to hit back with tariffs of their own and China said it would take “necessary countermeasures”
• On 3 February, Mexican President Claudia Sheinbaum announced that she and Trump had reached an agreement to halt the tariffs for 30 days - with Mexico agreeing to send 10,000 National Guard members to the border
• Later that day, Canadian Prime Minister Justin Trudeau said he had a last-minute call with Trump. Canada agreed to reinforce its border in exchange for a 30-day postponement on tariffs
• But without an agreement reached with Beijing by 00:01 EST (05:00 GMT) this morning, a US tariff of 10% on Chinese imports came into effect
• Shortly after, Beijing announced it would be imposing retaliatory tariffs on a raft of American products, including 15% on coal and 10% on crude oil

João da Silva
Business reporter

Trade relations between the world’s two largest economies first descended into a full-blown tariff war during Trump’s first term in 2018.

At the time, Trump was implementing his “America First” agenda, imposing round after round of tariffs on foreign goods. Hundreds of billions of dollars’ worth of Chinese products faced new or higher tariffs, resulting in tit-for-tat retaliation from Beijing.

Under President Joe Biden the US kept most of those tariffs and even increased some of them. Adopting a more targeted approach, Biden took aim at key high-tech sectors. He hiked tariffs and restricted trade in products like semiconductors and electric vehicles.

Despite the tensions, the world’s two largest economies remain deeply intertwined - and many commentators say theirs is the world's most consequential bilateral relationship.

The two countries are among each other’s top trading partners - US imports from China reached $401bn (£323bn) in the first 11 months of last year, while China’s imports from the US were worth $131bn (£106bn).

If you're just catching up on the news that China has slapped counter tariffs on US goods, here's a quick look at the measures Beijing has imposed on some imports:

• A 15% tariff on coal and liquefied natural gas
• A 10% tax on crude oil, agricultural machinery, pickup trucks and large-engine cars
• Announced an anti-monopoly investigation into Google
• Placed export controls on 25 types of rare metal products
• Adding PVH Corp, the holding company for Calvin Klein and other brands, and US biotechnology company Illumina to its "unreliable entities" list

Image source, Getty Images

Earlier, we reported that China has announced an investigation into Google for alleged antitrust violations.

The investigation will be carried out by the State Administration for Market Regulation - but there are no further details on the probe yet. The BBC has reached out to Google for comment.

Although Google's search services have been blocked in China since 2010, it still has some business activities in China. For example it still provides apps and games to the Chinese market through partnership with local developers.

In a statement announcing the retaliatory tariffs, China accused the Trump administration of breaking international trade rules.

"The US's unilateral imposition of tariffs seriously violates the rules of the World Trade Organization. It is not only unhelpful in solving its own problems, but also undermines the normal economic and trade cooperation between China and the US."

China's announcement signals Beijing's willingness to adopt a tit-for-tat response to US tariffs, surprising some observers.

However, unlike the tariffs imposed by the US, which target all Chinese goods, China's import taxes will target only certain types of products.

China's competition watchdog says it has launched an investigation into Google.

The State Administration for Market Regulation says Google is suspected of violating anti-monopoly laws.

We will bring you more details about this as we get them.

Image source, Getty

Beijing has said it will impose retaliatory tariffs on a raft of US products.

The counter measures include a 15% tax on coal and liquefied natural gas imports from the US.

Crude oil, agricultural machinery, pickup trucks and large-engine cars will face a 10% tariff.

The announcement came shortly after Donald Trump's new 10% tariffs on China came into effect.

We will bring you more updates as we get them.

We've just learnt that China is to impose retaliatory tariffs against the US.

They will hit US imports of some types of sports cars, pick-up trucks, coal, liquified natural gas, crude oil and agricultural machinery.

We will bring you more updates as we get them.

The deadline for Donald Trump's new 10% tariffs on China to come into effect has just passed.

The move escalates trade tensions between the world's two biggest economies.

Beijing has previously called for talks to negotiate a deal.

China's President Xi Jinping and Trump are expected to speak this week.

João da Silva
Business reporter

Donald Trump is a self-professed fan of tariffs. In his own words: "The most beautiful word in the dictionary."

He sees them as way to bring jobs back to the US, raise tax revenue and fix problems with America's borders.

Trump also believes trading partners, including Western allies, have taken advantage of the US and sees tariffs as a way to get back at them. He has often accused China of unfair trade practices.

But this time the US president says he is using tariffs not just for economic reasons. He says he wants to end the "scourge of fentanyl", a powerful opioid that kills tens of thousands of Americans each year.

His administration says chemicals used to make the drug come from China, while Mexican gangs supply it illegally and have fentanyl labs in Canada.

Peter Hoskins
Business reporter

Hello from Singapore, and welcome back to our coverage of US President Donald Trump's tariffs.

New 10% levies on China are due to take effect in the next few minutes.

Earlier, the US president struck deals to delay 25% import taxes on Canada and Mexico for 30 days.

Stay with us as we bring you more updates.

Brandon Livesay
Reporting from New York

The day began with a trade war on the horizon.

US President Donald Trump had vowed to hit Canada and Mexico with 25% tariffs on imports as the clock ticked past midnight on Tuesday.

That is no longer the case, thanks to some last-minute phone calls.

The leaders of America's two largest trading partners, Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum, both agreed to various measures aimed at boosting border security and cracking down on drug trafficking.

These deals led to Trump agreeing to 30-day pauses on his proposed tariffs.

At this stage, it's just a pause. The threat of a trade war still looms.

And Trump's 10% tariffs on China's imported goods is still expected to go ahead at 00:01 EST (05:01 GMT).

For now, we are pausing our live coverage. We will be back if there are any major developments.

In the meantime, here are a few of the interesting stories from across the BBC to keep you updated:

• Trump sows uncertainty - and Xi Jinping sees an opportunity
• Six things that could get more expensive for Americans under Trump tariffs
• Share falls ease after Trump tariff turmoil