Michael Race
Senior economics and business reporter

Things are looking a lot more rosy for investors on Europe's main stock markets so far this morning.

In the UK, FTSE 100 is already up 6%.

In France, the Cac 40 is up 6.3%.

And in Germany the Dax is up 8%.

All three indexes had closed before Trump decided to pause some higher tariffs for 90 days yesterday, so we'll be watching closely how trading fairs today on this side of the Atlantic.

Michael Race
Senior economics and business reporter

Trading has restarted in the UK and the main stock market index has rebounded after sustaining losses on Wednesday.

The FTSE 100 has opened up 1.18%.

Dearbail Jordan
Business reporter

It is undoubtedly positive that Trump has paused his most punitive tariffs for most of America's trading partners - but that does not mean everything is suddenly hunky-dory.

Imports of cars, steel and aluminium to the US are still subject to a 25% tax - including on UK goods. That tariff will extend to car parts next month.

Additionally, the 10% blanket tariff that Trump previously announced for nearly all nations is still in place - that's a tax that wasn't in force a couple of weeks ago.

And on top of that, you have the mercurial nature of Trump. His U-turn on the highest tariffs came less than a day after they came into force.

So, keep the cork in the champagne bottle for now. Who knows what will happen next?

Image source, Reuters

Despite the trade war currently raging between China and the US, Donald Trump praised Chinese President Xi Jinping while speaking to reporters in the Oval Office last night.

"Xi is a smart guy and we'll end up making a very good deal," Trump said of the Chinese president, adding that his counterpart is "one of the smartest people in the world".

He then made a brief mention of US firepower, saying: "We have weapons that nobody even knows," before returning to complimenting Xi Jinping.

"Xi is a man who knows exactly what has to be done, he loves his country," he said. "We will get a phone call at some point and then it's off to the races."

Adam Goldsmith
Live reporter

A few hours ago, Donald Trump told his followers on Truth Social that yesterday had been a "great day”.

Looking back at the president's social media feed, we can see how it all panned out from the president's thumbs:

At the start of the day and with big tariffs on many countries taking effect, Trump urged that now is a "GREAT time to move your COMPANY into the United States of America", and promised "ZERO TARIFFS" as well as "no environmental delays" for those who took up the offer.

Then, as US stock markets opened - and showed signs of falling again - the president's message was one of reassurance. "BE COOL! Everything is going to work out well," he said.

Trump then used social media to announce a raise in tariffs on China to 125%. He said this was "effective immediately" and because of a "lack of respect" shown by the Asian country to "the World's Markets".

But he also used the same post to authorise a 90 day pause and a lower tariff rate of 10% for other countries that had been targeted at the start of the day.

"These Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States," he explained.

Later, speaking to reporters outside the White House, Trump suggested that he had used tariffs after countries "had been getting a little bit yippy".

Charlotte Edwards
Business reporter

More analysis now from the Today programme on Radio 4. Fiona Cincotta, a senior market analyst at trading provider City Index, says “it almost feels like an understatement to say rollercoaster, and that's something, but it's been big up, big downs”.

Yesterday saw a big close in the US and a pause from President Trump on some tariffs after a volatile day for markets.

"There is some uncertainty with what we're seeing in the rest of the world, but we are kind of back from the brink," Cincotta says.

As for the rest of the world's markets, recovery has also been observed.

"As far as Asia is concerned, we have seen a strong recovery despite the fact that China is still in the firing line. In Europe, we are very much looking to a stronger open as well. The FTSE 100 is looking to open around 5% higher, the German DAX over 7% higher. The Nikkei in Japan as well we saw a 7% rise there," she adds.

It’s not long now until European stock markets open, trading begins at 08:00 BST.

Charlotte Edwards
Business reporter

Jeffrey Cleveland, director and chief economist at investment management firm Payden & Rygel, tells BBC Radio 4’s Today programme "we're off the ledge but we're not out of the woods" when it comes to the bond market.

He says all the uncertainty is creating a drag on investment and business decisions.

"What we're going to end up with is, I think, weaker growth, but perhaps we avoided a recession. But in the near term we're going to have higher prices. So, the bond market is just really trying to work out what all those affects are going to be in real time," he says.

Cleveland adds that inflation "could pop" due to all the tariff announcements, leading investors to demand higher returns.

Annabelle Liang
Business reporter, Singapore

Image source, Getty Images

For those who are just joining us, Asia-Pacific financial markets have continued to advance in Thursday's trade.

This comes as China put 84% levies on the US, as it responded to President Trump placing higher tariffs on the world's second largest economy.

Here is where markets stand:

• Nikkei 225 (Japan) +8.2%
• Kospi (South Korea) +5.9%
• Shanghai Composite (China) +1.2%
• Hang Seng (Hong Kong) +3.1%
• Taiex (Taiwan) +9.3%
• ASX 200 (Australia) +4.5%

Stock markets in India are closed for a public holiday today.

Stephen McDonell
China correspondent

China’s Foreign Ministry Spokesperson Mao Ning has taken to social media to declare that her government is “not afraid of provocations.”

She posted a video of former Chinese Communist Party leader Mao Zedong during the Korean War telling the United States that “no matter how long this war lasts we will never yield.”

Above the video, she wrote “We are Chinese. We won’t back down.”

The latest sanctions from China and the United States have both now come into force and are so high that many analysts believe that they are already capable of wiping out much of the trade between the world’s superpowers.

But there’s still been no indication of how negotiations might take place between Beijing and Washington.

Image source, Reuters

Much of China's exports used to go to the US - but with the current tariffs - where might they end up?

This has become a "massive diplomatic and geopolitical headache for the Chinese leadership", says The Economist's geopolitics editor David Rennie, who recently met with Chinese officials and scholars.

"China also has the additional problem that if America really stays closed off to Chinese exports, those exports are going to have to go somewhere else. I was told in Beijing [that] China is already very concerned... by the idea that they can end up really alienating and aggravating places like Europe, even partners in Latin America, the Global South," he says.

"Because if a tidal wave of Chinese exports ends up swamping those markets and damaging employment and jobs in lots of countries around the world because it can't be sold in America, that's a massive diplomatic and geopolitical headache for the Chinese leadership."

Image source, Getty Images

Just before President Trump - presumably - went to bed, he shared a message on Truth Social., external

"What a day, but more great days coming!!!" He wrote, shortly before 01:00 in Washington (05:45 BST).

It follows his decision to step back from the cliff edge of a global trade war, instead doubling down on his tariffs on China.

To catch you up this morning, our correspondent Anthony Zurcher has more on the surprise 90-day pause on tariffs - which the White House had previously derided.

Good morning to our readers from the UK and Europe, and good afternoon to those in Asia.

If you are just joining us, here's what's been unfolding in the last few hours:

• China's 84% retaliatory levy on imported US goods have taken effect as Beijing and Washington lean deeper into a trade war
• Trump had already put a 125% tariff on Chinese goods - up from 104%. He has singled out Beijing for harsher treatment, while putting a 90-day pause on higher tariffs on other countries
• China has filed another lawsuit with the World Trade Organization, accusing the US of engaging in "bullying tactics"
• Stock markets across Asia have made gains following news of the reprieve. One analyst told the BBC that exporters in the region are heaving "a massive sigh of relief"
• A few countries have made some progress in reaching out to Washington. Vietnam, for instance, says the US has agreed to start negotiations over a trade agreement
• Chinese state media meanwhile continues to call for global unity against US tariffs but has not highlighted the 90-day pause

• 20 January: Trump uses his inauguration speech to outline plans to overhaul the global trading system "to protect American workers" and introduce tariffs on foreign countries "to enrich our citizens"
• 1 February: The US president announces a 25% levy on Canadian and Mexican exports to the US - and an additional 10% on China
• 3 February: Mexico and Canada reach a deal to pause US tariffs for one month
• 10 February: Trump announces a 25% import tax on all steel and aluminium entering the US
• 4 March: The White House places an additional tariff on Chinese imports
• 12 March: Trump's 25% steel and aluminium tariffs take effect
• 26 March: The White House reveals new 25% duties on car and car parts coming into the US - those take effect from 2 April
• 2 April: Trump says the US will impose "reciprocal tariffs" on certain countries, as well as a universal 10% levy on imports from all other countries
• 5 April: That 10% "baseline" tariff takes effect
• 9 April: Custom tariffs on roughly 60 countries - dubbed the worst offenders - come into effect. Trump then announces a 90-day pause for all countries, except China, with a universal 10% tariff across the board. Trump hikes tariffs on China to 125%
• 10 April: China's 84% levies on the US take effect

Image source, Getty Images

Jagdip Cheema
Business reporter, BBC News

Goldman Sachs has backtracked on its US recession prediction that it made earlier this week.

The investment banking giant had forecast there was 65% chance that the US economy would shrink this year.

It has now reverted to a previous forecast, predicting there is 45% risk of a recession.

In an internal research note seen by the BBC, Goldman said: “Earlier today, before President Trump’s announcement, we had shifted to a recession baseline in response to the additional country-specific tariffs that went into effect this morning. We are now reverting to our previous non-recession baseline forecast.”

Fellow investment bank JPMorgan said it would also "revisit" its forecast over the next few days, stating the US recession risk was now a "closer call" after Trump announced a 90-day pause to higher tariffs on most countries. Earlier this week it raised its prediction to 60%.

Annabelle Liang
Business reporter, Singapore

Image source, Getty Images

Stock markets across Asia are making gains this morning.

In Japan and China, share price display boards are a sea of red. It's a big difference from what can be expected on a good day on Wall Street, where green is associated with rising financial markets.

There is no official explanation for why things are different in some parts of Asia.

But in China red is a highly auspicious colour, while it's used in Japan for celebrations.

Image source, EPA

China has been planning really carefully for Donald Trump's onslaught of tariffs and it has both short-term and long-term countermeasures in its arsenal, according to The Economist's geopolitics editor David Rennie.

Beijing saw the signs as far back as Trump's presidential campaign that he was going to target China, Rennie tells the BBC's Newshour programme. Rennie was recently in the Chinese capital where he got to talk to Chinese officials and scholars.

"China likes to plan. It likes five-year plans. It finds it very hard to deal with this mercurial transactional American president," he says.

"They've been preparing really carefully for a long time. They've have been doing short-term America-specific defensive kind of preparations and some longer-term attempts to reshape and rebalance their entire economy away from this incredibly high dependence on exports," he adds.

Take the case of Chinese tariffs on soybeans from the US. Rennie says the levy targets Trump's support base in the US mid-west and Beijing can get it from Brazil and Argentina.

The thinking in Beijing goes, "What can we target that is gonna hurt Trump voters and get Trump's attention, and we can buy that from somewhere else," Rennie says.

Annabelle Liang
Business reporter, Singapore

On paper, tariffs stand to impact China more than the US.

Firms in China sold almost $440bn (£342.5bn) of goods to America last year. That is around three times what US firms sold to China, suggesting that higher levies will cause a bigger hit to Chinese businesses.

But the reality is far more complex, according to analysts.

The 84% Chinese levies will have an outsized impact on US agricultural companies, which count China as their largest export market, says Sarah Tan from the Moody's Analytics research firm.

"US agriculture is on the front line of [China's] volley," she says.

"When this latest increase is combined with hikes of 10% on soybeans, fruit, dairy products, pork and beef and 15% on chicken, wheat, corn and cotton in March, US farmers will soon feel a noticeable decline in Chinese demand."

American consumers will also bear the brunt of any price increases - as tariffs could make Chinese imports more expensive, says Alex Holmes from the Economist Intelligence Unit.

"Tariff rates are so high between the two countries now it's essentially an embargo for all but essential goods," he adds.

China has now raised the tariffs on all imported US goods to 84%, up from the 34% previously announced.

Trump had earlier already hit Beijing with an astounding 125% levy.

The trade war between the world's two biggest economies shows no signs of slowing down. Beijing has vowed to "fight to the end" and Washington has also indicated that it will not back down.

Apart from tariffs, China has also slapped restrictions on more than a dozen US firms which, among other things, prohibit their executives from entering China or ban them from investing in the country.

Image source, EPA

We are bringing you reaction from Taiwan, which had been due to to be hit with a 32% tariff.

Foreign Minister Lin Chia-lung said Taiwan was committed to buy more from the US and increase investments in America.

"Now that we have an additional 90 days, we can discuss Taiwan-US economic and trade cooperation in a more detailed and in-depth manner," he told reporters in parliament.

"We hope to take advantage of the huge US market, their excellent technology capital and talent, to form a Taiwan-US coalition, a joint fleet approach," he added.

Ian Tang
BBC Monitoring

Image source, CCTV

China’s national broadcaster China Central Television (CCTV) is projecting a sense of global unity against the US tariffs and saying China is well-poised to deal with the turmoil.

Reports highlighted China filing a lawsuit with the WTO over the US tariffs, the foreign ministry’s criticisms of Washington as well as the commerce ministry blacklisting 18 American firms and barring them from trading with China, which was announced a day earlier.

It also noted global opposition to the US tariffs, particularly focusing on the EU and Canada’s retaliations.

Another report highlighted comments from foreign scholars and experts that the tariffs are "hurting newly emerging markets".

A Chinese scholar told CCTV that China “still has ample monetary and financial policies” to support companies affected by the trade war.

Interesting but expected, Trump’s 90-day pause of higher tariffs for most countries but raising tariff on Chinese imports to 125% was not reported in CCTV.