Donald Trump says he is open to talks with Chinese President Xi Jinping after he hit China with an even higher tariff rate of 125%
The US president has also announced a 90-day pause on the implementation of higher tariffs, meaning a "universal 10%" levy will be in place for most countries
Following news of the tariffs reprieve, markets are soaring after days of economic turmoil
Anthony Zurcher's analysis: The US is making nice – or at least nicer - with most countries, but is leaning into a trade war with China
America's neighbours Canada and Mexico will still face the same tariffs that were imposed on them last month
Speaking at a Nascar event at the White House, Trump maintains that "fair deals" will be made with China and every other country
Trump says he would consider meeting with China’s Xi Jinping on tariffs
Treasury Secretary Scott Bessent says Mexico and Canada are included in the 10% baseline tariffs imposed by the US, following Donald Trump's announcement to pause higher tariffs for 90-days.
Financial markets have soared after President Trump announced a 90-day "pause" on the tariffs against countries who have not retaliated against the US.
The NASDAQ index is up 9% and the S&P 500 index is up 8%.
Image source, ReutersAs we've just reported, Donald Trump has raised tariffs against China to 125%, and also issued a 90 day pause to some tariffs.
Here's his Truth Social statement in full:
"Based on the lack of respect that China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately.
"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.
"Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!"
We are continuing to decipher the specifics of Trump's announcement, stick with us for the latest.
We have some more now from Donald Trump, who confirms in the same social media post that he's authorising a "90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately".
Chinese goods imported to the US will carry tariffs of 125% effective immediately, Donald Trump says.
"At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable," the US president writes on social media platform Truth Social.
Image source, Getty ImagesWall Street opened with mixed trading this morning, with both S&P 500 and Dow Jones down, we're now seeing some slight changes as it reaches lunchtime in the US.
Shares for pharmaceutical companies have fallen following Trump's threats to slap them with tariffs last night - here's a quick breakdown:
The trade in goods between the two economic powers added up to around $585bn (£429bn) last year.
Though the US imported far more from China ($440bn) than China imported from America ($145bn).
That left the US running a trade deficit with China - the difference between what it imports and exports - of $295bn in 2024. That's a considerable trade deficit, equivalent to around 1% of the US economy.
But it's less than the $1tn figure that Trump has repeatedly claimed this week.
Luke Mintz
World at One reporter
Image source, Getty ImagesThe US is seeing an "erosion" in the dollar's status as the global reserve currency, the former head of one of the world's largest investment firms has said.
For context, the dollar is currently the global reserve currency and is accepted around the world as a safe investment even during troubled times.
But Mohamed El-Erian, the former CEO of PIMCO tells BBC Radio 4's World at One that the recent sell off in US government bonds is "very unusual".
"When there is a sell-off in the stock market... you would expect yields to come down. but as you've just pointed out, yields have gone up," he says.
Part of the reason, he explains, is the "erosion of [US] Treasuries as a safe haven".
He adds: "The dollar will remain the reserve currency, but its impact, its influence, its reach, will be much less if this continues. It is an incredible privilege, to use the famous historical word, to be the reserve currency.
"But if you don't act responsibly, then other countries are going to slowly withdraw that privilege from you."
Image source, ReutersEuropean stock markets have sustained losses across the major indexes today.
In France, the Cac 40 ended down 3.34% after falling 2.3% at opening this morning.
The German Dax closed 2.96% lower this evening, after opening to losses of 2.1%.
As as we just mentioned, the UK's FTSE 100 has finished for the day at a 13-month low with a fall of 2.92%. It had opened at 2.5% down.
Jonathan Josephs
BBC business reporter
Hungary was the only one of the 27 EU member states to vote against imposing tariffs on the US.
Prime Minister Viktor Orban has long been seen as close to President Trump but he also has domestic pressures to consider when it comes to tariffs.
On social media the minister for foreign affairs & trade, Peter Szijjarto, said: “Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation.”
Whilst politicians across Europe will be concerned about the inflationary impact of tariffs Hungary has struggled with rising prices more than most in recent years, even though it has the extra agility to respond that comes with using its own currency rather than the Euro.
Last month the government even imposed limits, external on how much profit food retailers can make on a group of 30 basic food items.
Hungary also faces a big economic hit from President Trump’s tariffs on cars because it's an industry that supports more than 100,000 jobs and accounts for 21% of exports, external.
Image source, PA MediaThe London stock market has closed its trading for the day.
The FTSE 100 index finished at 2.92% down at 7,679.48, its lowest since March 2024.
Jacqueline Howard
Live reporter
Image source, Getty ImagesIn the aftermath of Trump imposing higher tariffs on the so-called "worst offending" countries, global and economic reaction continues to move at pace - so let's get you up to speed.
The EU has voted in favour of imposing new tariffs on the United States - affecting €20.9bn (£18bn) worth of goods - to be implemented in three stages throughout the year starting from 15 April.
China is refusing to back down after being hit with a 104% tariff from Trump last night, responding with an 84% tariff rate on US goods.
China has already filed a complaint to the World Trade Organization saying the US is violating international trade laws.
Wall Street opened earlier with mixed trading - with the S&P 500 and Down Jones down 0.19% and 0.5% respectively, but Nasdaq up 0.7%.
Asia's markets closed between 4% to 1% lower (with the exception of Shanghai up 1.3%), while European markets closed between 2.9% to 3.3% lower.
Over on social media, Donald Trump has called on Americans to remain calm - telling them to "be cool" amid the uncertainty surrounding US tariffs.
Our writers in London, Washington and further afield will continue to bring you the latest developments - stick with us.
Image source, EPAIncoming German Chancellor Friedrich Merz says Europe can rely on his country and calls for a joint response to Trump's tariffs.
As a reminder the European Union has voted in favour of imposing tariffs on some US imported goods, we have more on that in our previous post.
Merz says that Trump has unleashed new turbulence in financial markets, warning that "we don't know where that leads".
“Germany will fulfil its obligations in terms of defence, and Germany is willing to strengthen [our] own competitiveness," he adds during an event at which he presented his new coalition's priorities.
Image source, Getty ImagesAs Trump's tariffs on the 60 countries he calls the "worst offenders" came into effect there has been a flurry of reaction - including retaliatory measures. Here's the latest from three key US trade partners:
China
The EU
Canada
Charlotte Edwards
Business reporter
Crude oil prices continued to plummet on Wednesday.
WTI crude oil plummeted to $55.60 a barrel, meaning it was down 6.68%. Brent crude oil, which is usually used as a global benchmark of oil prices, fell to $58.84 at one point, a 6.34% drop.
It's significant to see the price of oil drop below $60 because we haven't seen such prices since February 2021 - when the world was facing the Covid pandemic.
The price per barrel continues to fluctuate throughout Wednesday and has also risen slightly above $60 at points before falling back down.
How could this affect me?
Crude oil prices impact every day items like petrol for your car. It can also impact the cost of shipping imported goods, heating homes, and production costs for energy intensive industries.
Image source, Getty ImagesDonald Trump is urging Americans to keep calm: "BE COOL!", he says. "Everything is going to work out well. The USA will be bigger and better than ever before!"
"THIS IS A GREAT TIME TO BUY!! DJT" he adds, in another post on his social media platform Truth Social.
Trump also makes reference to an interview with JPMorgan Chase Chairman and CEO Jamie Dimon on Fox News. Dimon accepted, in the interview, it is "totally reasonable" to look for improvements in trade but warned that "trade deals are very large and very complex".
He added some form of recession in the US is a "likely outcome" due to current uncertainty in the markets.
Jonathan Josephs
BBC business reporter
Image source, Getty ImagesToday's announcement of new EU tariffs on US goods are the first such measures from Brussels since Trump began his blitz of tariffs.
The EU is set to confirm which products will be affected by its response to steel and aluminium tariffs within the next 24 hours, but it seems likely that American farmers will be targeted.
Agricultural produce is often the target in trade wars and multiple news agencies are suggesting that poultry, corn and fruit are amongst the goods that will be impacted.
Similarly, motorcycles are in the line of fire. All of that would be reminiscent of tariffs the EU imposed when Trump targeted steel and aluminium in his first term in office.
One difference could be that US whisky isn't targeted because Trump has threatened even steeper tariffs on European alcohol if it is and the EU is keen to protect a struggling industry.
The Dow Jones Industrial Average - an index of 30 prominent companies listed on stock exchanges in the US - fell as soon as the market opened a little while ago.
See the moment below:
Natalie Sherman
New York business reporter
It’s another hugely jumpy day on Wall Street.
Shares of the three leading indexes in the US are up in early-morning trade.
The Dow is up about 0.9%, the S&P 500 has risen 1.2% and the Nasdaq is trading 2% higher.
But there have been sharp moves up and down – an indication that buying and selling is likely to remain intense, as investors try to position themselves in an uncertain business environment.
Image source, Getty ImagesThe world needs to start acting differently in the wake of US President Donald Trump's tariffs, Keir Starmer says, adding that a trade deal with the US or changing the rates of tariffs against the US will not be enough.
"Simply thinking that any change in the rates, or any deal is going to be enough, to my mind is wrong," the prime minister tells ITV, adding "we've got to step up and act differently".
"We are actually, there's a changing world, we're entering a new era. We have to think and behave in a way that reflects that".
He says that the UK is negotiating with the US and hopes to "improve the situation".