More now on China's new tariffs on US imports, which, as we have been reporting, have been set at 125% and come into effect tomorrow.

A spokesperson for Beijing's Commerce Ministry says the duties imposed on Chinese exports to the US "have become a numbers game with no practical significance in economics".

The spokesperson says that the tariffs will only further expose the "bullying and coercion" by the US.

"It will become a joke," the spokesperson says.

Adam Easton
Reporting from Warsaw

Image source, Reuters

The European Union will discuss a response if tariff negotiations with the US fail to reach an acceptable solution, Germany's Finance Minister Joerg Kukies says.

“At the moment we’re in a good situation that we have a fairly long period of time where there is potential to negotiate, and of course the US side has to be aware that if negotiations do not work, then we will have another discussion around response mechanisms,” Kukies said ahead of an informal meeting of EU economy and finance ministers in Warsaw.

He adds the EU must differentiate and be nuanced in its response to US tariffs because the EU has a trade surplus in goods, but a trade deficit in services.

Kukies says Europe should incentivise its own digital industry because at the moment it has no real alternative to the services offered by US digital services providers.

As we've just reported, China has announced it will raise tariffs on US goods to 125% from tomorrow.

Beijing says it will not respond to any further tariffs imposed by the US.

It says the "abnormally high tariffs" imposed by the US "seriously violates international and economic trade rules, basic economic laws and common sense and is completely unilateral bullying and coercion".

China has announced it will raise tariffs on US goods to 125%, up from the 84% levy announced on Wednesday.

It's in keeping of the pattern emerging in this trade war, where China has been matching the tariff increases set by the US.

Image source, Reuters

Taiwan is among the first places entering into tariff negotiations with the US, President Lai Ching-te says.

The US had slapped Taiwan with a 32% tariff rate before the 90-day pause brought it down to the 10% baseline.

"The government will be well prepared to negotiate with the US to ensure our national interests and protect the future development of the industry," he says.

Image source, Reuters

Chinese officials have consistently used strong language to describe their opposition to Donald Trump’s new tariffs, which have escalated for Beijing.

When the US president first announced his sweeping global import tax scheme, China's rate sat at 34% - high, but certainly not the worst-hit country.

Beijing retaliated with a 34% tariff on American goods, which kicked off a tit-for-tat trade war. The US responded by upping their tariffs to a total of 104%, so China raised theirs to 84%. The US responded again, and as it stands, current US tariffs on Chinese goods are at 125%.

But US tariffs on Beijing could yet rise further, going up to 145% for some products due to a pre-existing levy imposed on companies which produce fentanyl.

The latest raise, which came from Beijing on Wednesday, was accompanied by comments from China's finance ministry, which described the White House's actions as "trade tyranny" in state media.

Beijing "firmly opposes and will never accept such hegemonic and bullying practices", foreign ministry spokesperson Lin Jian told reporters.

The commerce ministry had previously labelled the US's additional levy as "a mistake on top of a mistake" saying it will never accept the "blackmail nature" of the US.

For his part, the US president has accused China of a lack of respect and of "ripping off" the US.

Charlotte Edwards
Business reporter

April LaRusse, head of investment specialists at Insight Investments, says that Asian stock markets are still going down and isn’t hopeful things will be resolved any time soon.

"Although we badly want for them to be some resolution, this will echo on for probably months, maybe weeks," she tells the Today programme on BBC Radio 4.

Asked about the 90-day tariffs pause, she says: "It is good news that there's a bit of a pause, not least because businesses need to rearrange supply chains, and it also gives them a chance to get some more inventory in before these tariffs hit but it is just a pause."

But what does all this mean for the UK? LaRusse says she thinks it just means the UK economy will "continue to be hurt by the continued slowdown of economic growth".

Michael Race
Senior economics and business reporter

The main stock markets across Europe have also had a positive start.

• In France, the Cac 40 was up 0.8% shortly after open
• Germany's Dax was also up 1.08%

Image source, EPA

"There are no winners in a tariff war," China’s president Xi Jinping says following a meeting with the Spanish Prime Minister Pedro Sanchez this morning.

He calls on China and the EU to jointly "oppose unilateral bullying practices", referencing the US's sweeping global tariffs as he advocates for the two international powerhouses to continue economic globalisation.

"Going against the world will only lead to isolation," he adds.

Xi and Sanchez are meeting today to talk trade and the general relationship between the EU and China.

Earlier this week China announced an 84% tariff on good imported from the US. This hike, up from 34% came after President Trump's 104% tariff came into force on Wednesday.

Tariffs were later increased to 125%, with the White House saying on Thursday tariffs on Beijing could hit 145% for some products due to a pre-existing 20% levy imposed on those producing the drug fentanyl.

Michael Race
Senior economics and business reporter

Trading in the UK has restarted to cap off what has been a turbulent week on global financial markets to say the least.

The FTSE 100, the main stock market of the country's biggest companies, has opened nearly 1% up.

It ended Thursday with 3% gains.

Michael Race
Senior economics and business reporter

The better-than-expected growth in February in the UK economy will be welcome news for the government, which has made growth its top priority in an effort to boost living standards.

The 0.5% expansion was much bigger than economists predicted (0.1%) - January's 0.1% contraction was also revised up to no growth.

However, this data is for February, which means the impact on the economy of the tax rises for businesses and household bill increases which kicked in this month isn't known yet.

US tariffs on UK goods being imported into the country also threaten growth.

Ruth Gregory, deputy chief economist at Capital Economics, reckons the "surprisingly strong growth will prove short lived."

"It’s hard to see the economy strengthening much from here," she says.

The "constant state of turmoil is overwhelming", Beth Benike, founder and CEO of Busy Baby in Minnesota tells the BBC.

“These tariffs mean I could potentially lose my house, my business, lose everything within about three to four months.”

She says so many small business owners are “going through it on their own”.

Image source, Reuters

The European Union is among those seeking a trade deal with the US during this 90-day higher tariff pause, however, the bloc is also "developing retaliatory measures" in case talks fail, EU chief Ursula von der Leyen says.

In an interview with the Financial Times, von der Leyen says the EU is looking at introducing a tax on the advertising revenue of US tech companies like Meta and Google if it does not come to a "completely balanced" agreement with the US.

She rules out any changes to EU regulations on digital content and VAT, which have been subject to criticism from White House trade adviser, Peter Navarro.

Regardless of any deal struck, von der Leyen says these new tariffs mark a "turning point with the US without any question".

"We will never go back any more to the status quo."

Image source, EPA-EFE/REX/Shutterstock

President Trump has accused Mexico of "stealing water" from Texan farmers and has threatened the country with related tariffs.

Posting on his Truth Social platform, external Trump says: "Mexico OWES Texas 1.3 million acre-feet of water under the 1944 Water Treaty, but Mexico is unfortunately violating their Treaty obligation. This is very unfair, and it is hurting South Texas Farmers very badly."

He adds: "We will keep escalating consequences, including TARIFFS and, maybe even SANCTIONS, until Mexico honours the Treaty, and GIVES TEXAS THE WATER THEY ARE OWED!"

In a post on X however,, external Mexico's President Claudia Sheinbaum says the border region has experienced three years of drought and had been complying with the treaty "to the extent of water availability."

The Mexican government will contact US officials to reach an agreement, Sheinbaum says.

Charlotte Edwards
Business reporter

The UK economy grew by more than expected in February, according to the latest official figures.

The economy expanded by 0.5%, with the services sector having a strong month, the Office for National Statistics (ONS) said.

Economists had predicted growth of just 0.1%, but the ONS said several factors contributed to the surprise rise which was driven by a boost in manufacturing and production.

The better-than-expected figures comes as the UK economy braces itself for the impact of tariffs imposed on goods being imported to the US.

A little over a week after the US announced sweeping tariffs on all of its trading partners, ranging anywhere from 10% to 50%, President Trump called for a pause.

For 90 days, he said, all countries would be subject instead to a baseline 10% tariff - or import tax - that is paid to the US government when goods are brought into the country.

It means that now, when businesses bring goods into the US to sell, they must pay an extra 10% of the value of that item in tax, as opposed to anywhere from 10% to 50% depending on where it came from under Trump's original plan.

Some original tariffs that are not targeted towards one specific country remain, such as 25% on cars, as well as on steel and aluminium, and on some goods from Mexico and Canada.

Trump has said that this 90 day pause is to allow trade deal negotiations, but one of his senior advisers has said that it would be "extraordinary" for the US to agree to a deal below that 10% tax rate.

Image source, Reuters

The partial suspension of tariffs for 90 days is an "open door" to negotiations, but the pause remains "fragile", French President Emmanuel Macron says.

In a post on X, external, Macron says the pause means uncertainty for European businesses, who are still subject to 25% tariffs on steel, aluminium and cars, as well as the new 10% baseline tariff.

Europe must continue to work on all the necessary countermeasures and mobilise all the levers available to protect itself, Macron says.

"We are right to fight, it is jobs and the lives of our territories that are at stake here."

Image source, Reuters

The UK is looking to negotiate a trade deal with the US that could soften the 10% tariffs announced by Donald Trump last week, but one of the president’s advisors suggests any such deal would be "extraordinary".

"I think everybody expects that the 10% baseline tariff is going to be the baseline," senior economic advisor Kevin Hassett tells CNBC.

"It is going to take some kind of extraordinary deal for the president to go below there."

Hassett adds that the White House is in negotiations with around 20 countries and that two deals are almost closed.

British Prime Minister Keir Starmer has said he would only sign a trade deal with the US "if it's in the national interest" of the UK.

US President Donald Trump probably thinks he will be able to cut a deal with China, Stephen Vaughn, former acting trade representative for the United States says.

Speaking to Newsday on the BBC World Service, Vaughn says he believes China and the US had a "productive relationship" in Trump's first stint as president.

He "would not be surprised if there are already conversations going back and forth between [them]" and any deal would likely be presented as a "mutual agreement on both sides".

He adds that the relationship between US and China had been "incredibly unbalanced... and has been for a long time", saying that America "simply cannot go on with the status quo".

Vaughn also says he believes the US would continue to be a "very favourable place to do business".

It's been a wild week for financial markets as Donald Trump attempts to rewrite the global trade order with his tariffs plans.

To our audiences in the UK and Europe who are just starting their day, here's your catch-up:

• Gold has risen to a record high as investors flock to so-called safe-haven assets, triggered by concerns over the worsening US-China trade war
• That came after a selloff on Wall Street wiped out gains from the previous day's record rally
• On Friday afternoon in Asia it's more of a mixed picture, in contrast to the sharp drops on some major markets earlier in the day

• Meanwhile, Chinese President Xi Jinping is set to visit South East Asian manufacturing hubs Vietnam, Cambodia and Malaysia next week as he seeks to strengthen trade ties with China's neighbours
• Trump says he is still hopeful of striking a deal with Beijing that will be beneficial for both the US and China