Image source, Getty Images

It's been another busy day as markets and world leaders react to Trump's announcement of global tariffs on Wednesday. Here's a recap of the latest developments:

• Stock markets in Asia, Europe and the US fell steeply in response to Trump's tariff policy, with the US market facing its worst two-day stretch since 2020
• When the market closed in the US, the S&P 500 was down 5.98%, Dow 30 was down 5.5% and Nasdaq was down 5.82
• Earlier, China - which faces a 54% import tax - said it would introduce a 34% retaliatory tariff on US goods beginning on 10 April

• Despite the market response, Trump remained resolute and insisted his "policies will never change" before criticising China's retaliation, saying they "played it wrong, they panicked"
• JP Morgan raised its global recession odds to 60% this afternoon - the investment bank's previous prediction in March was 40%
• Trump also urged US Federal Reserve Chief Jerome Powell to cut interest rates. Speaking at an event, Powell said Trump's tariffs are “significantly larger than expected” and he expects higher inflation and slower growth as a result

We're pausing our live coverage, but you can stay across the ongoing fall-out from Trump's tariff announcement here.

Nada Tawfik
Reporting from New Jersey

Image source, Nada Tawfik / BBC

At the Jacobson Appliance in Union County, New Jersey, a shipment of refrigerators is out for delivery - which were imported before Trump's raft of tariffs come into effect tomorrow.

Stores like this have been urging customers to make any necessary purchases quickly before prices rise.

Owner, Pat Muscaritolo, was recently at a trade conference and says all the talk was about "tariffs, tariffs".

They still don’t know what prices are going to be at the end of the month, but they’re prepared for a huge increase of 30% to 40%. That could very well cause him to shut down his business of 40 years, he tells me as he chokes up with emotion.

It’s that outlook from businesses which has rattled Wall Street into thinking a recession could be on the horizon. Pat says he’s tired of working hard while the leaders of this country and others are "raking in money left and right" on the backs of little people.

Trump follows through on promise to take wrecking ball to global trade orderpublished at 21:55 British Summer Time

21:55 BST

Anthony Zurcher
North America correspondent

Two days after his tariff bombshell, Donald Trump seems to have a high tolerance for the fallout.

Despite his talk about a third term, he is operating like he’s got nothing to lose – and a legacy to gain.

He promised last year to take a wrecking ball to the establishment – government programmes, prestigious universities and, yes, the global trade order – and now he’s following through.‌

Other Republicans, however – including those with higher political ambitions, or seats to defend in upcoming elections – have a lot to lose. And the looming question is whether they will be willing to stick with the president if the political pain becomes too great.

The takeaway: Up until now, most Republicans have figured that the risk of crossing Trump is greater than the potential ire of general election voters. The tariff-induced economic tumult might alter that calculation.

If you've been enjoying live updates on this page, continue to follow the twists and turns of Trump’s second term with my US Politics Unspun newsletter.

Each week, I'll break down what you really need to know about US politics and what it means for the rest of the world.

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Nada Tawfik
Reporting from New Jersey

Image source, Nada Tawfik/BBC

Randolph Wojcik has been working in fabrication for 50 years. When I ask him whether he expects his business Doran LLC in Union, New Jersey, to be affected by tariffs, he tells me he does expect some “short term” pain from rising steel prices.

But the long time Trump supporter thinks tariffs are needed. He says he’s willing to give President Trump a year or two, and nonchalantly suggests the administration can change policy and try something else if it doesn’t work.

He agrees with Trump that companies will move manufacturing to the US to avoid tariffs and will hire American workers. I tell him economists disagree and say that won’t happen.

“Well everyone has their own opinion. I think keep going in debt the way we are or try something different,” he replies.

We can bring you the latest comments from Donald Trump, who took to Truth Social 25 minutes before US markets closed and declared: "ONLY THE WEAK WILL FAIL!"

As we've been reporting, the three main US indexes finished the day down more than 5% as markets continue to drop after Trump's tariff announcement.

Christal Hayes
Los Angeles reporter

California, which boasts the fifth largest global economy, is looking to build on relationships with other countries in hopes of sparing the US state from retaliatory tariffs caused by Trump's trade war.

California Governor Gavin Newsom, a prominent Democrat, has just announced a plan that urges for exemptions of California-made products from tariffs. He says the state is home to the two biggest US ports, leads the country in manufacturing and agricultural production and has a gross domestic product of $3.9 trillion - which is 50% bigger than the next largest state of Texas.

"It’s our workers, families, and farmers who stand to lose the most from this Trump tax hike and trade war," Newsom says.

He said his administration was working to identify opportunities with trading partners in hopes of California remaining a "steady, reliable partner for generations to come" regardless of the "turbulence coming out of Washington".

"California is not Washington, D.C.," he adds.

The bell has just rung on the New York Stock Exchange and that's the end of trading for the day.

Trump's tariffs have sent shockwaves through the market.

It is the worst two-day stretch in the US since 2020, when the pandemic hit.

Here's where things stand:

• S&P 500 -5.98%
• Dow 30 -5.5%
• Nasdaq -5.82%

Cai Pigliucci
Reporting from Kansas

Louise and Vance Ehmke, farmers from western Kansas, were sitting awake at 03:00 worried for their business and its future. "There is absolutely no good whatsoever in what Trump is doing out there," said Vance.

The two of them run Ehmke Seed, a wheat and rye seed farm. They say their cost will go up, and the prices for almost everything they sell will too.

The pair didn't vote for Trump, but they describe themselves as conservatives. Their town and surrounding county are deep red, what's normally described as 'Trump country.' Louise said she's heard from neighbours who are worried about the impact this will have, but that are willing to give Trump the benefit of the doubt. Vance and Louise are not.

"It's not good news for us farmers and it sure as hell is not good news for anybody who buys anything imported," said Vance.

Vance points out that one of the key things they need to do their work is an undercutter steel blade for a plough. Those are already expensive, and Vance says one of the only places you can get quality ones is from Canada. They buy about 11 of those blades each year, and with a prolonged trade war between Canada and the US, that will only become more expensive.

"We feel like we're going to pay the bill," said Louise. Vance added, "Canada's not paying that. I am paying it."

Here's how things are looking on the US market, as of 15:10 ET (20:10 BST).

• The Nasdaq index is down 5.7%
• The Dow Jones is down 4.98%
• The S&P 500 down 5.71%.

Stick with us for further updates, and read our explainer on the three main indexes here.

Natalie Sherman
New York business reporter

All three of the big share indexes in the US are now trading down more than 5%. That's huge, especially after the big declines we saw yesterday.

The sell-off started yesterday when firms such as Apple and Nike, which rely heavily on suppliers in Asia, were hammered. But today, the falls are moving into sectors that would typically not face direct impact of tariffs, such as healthcare and utilities.

I just got off the phone with Mike Dickson, head of research and quantitative strategies at Horizon Investments in the US.

"Candidly the mood is pretty sour and it should be," he said, warning that it will take weeks to understand the impact of Trump's tariffs.

He added that there were few parts of the market that had escaped unscathed. "It looks like people are just selling straight to cash. There's a lot of uncertainty."

Image source, Getty Images

British Prime Minister Keir Starmer has held separate calls with his Australian and Italian counterparts today, who all agreed an "all-out trade war would be extremely damaging," Downing Street says.

No.10 adds that the UK's response to Trump's tariffs will be guided by "national interest, and that we will calmly continue with our preparatory work, rather than rush to retaliate".

We've just been hearing from top Senate Democrat Chuck Schumer. He says he's introducing legislation that would rescind Trump's tariffs.

Schumer says he wants to make an amendment to the Senate Budget Resolution which revokes any tariffs that increase the cost of groceries or medicine.

The amendment would leave in place only the tariffs on Russia, China, Iran and North Korea.

Schumer described Trump's tariffs as "a disgrace", and says the cost of "everything is going to go up".

Trump, he adds, is "taxing penguins, not [Russian President Vladimir] Putin".

Schumer is referring to the Heard and McDonald Islands, a territory mostly inhabited by penguins that faces a 10% tariff.

Tariffs now are 'far from the final conclusion'published at 19:09 British Summer Time

19:09 BST

Natalie Sherman
New York business reporter

Simeon Siegel is managing director at BMO Capital Markets. He tracks companies such as Nike, which makes the vast majority of its shoes and clothing in countries hit hard by Trump's tariffs.

The firm's shares tumbled yesterday, reflecting worries about how the company will handle the sudden jump in costs due to the tariffs, which are set to go into effect on 9 April.

They are clawing back some of that ground today, buoyed by hopes that Trump's comments on Vietnam signal willingness to negotiate a deal.

Other retailers, such as Gap, have seen similar gains.

“Most companies are looking at last night’s announcement as still far from the final conclusion,” Siegel says.

“Despite the glossy, fancy, shiny table, I don’t think that many people believe that those numbers are etched in stone just yet. Companies are still trying to figure out what this means.”

In his latest Truth Social post, Donald Trump says he intends to sign an executive order granting TikTok a further 75-day extension to comply with a law that requires the platform to either sell its US assets or face a ban.

Trump adds he hopes the US continues to "work in good faith with China", but says he understands the country is "not happy about our reciprocal tariffs".

"This proves that tariffs are the most powerful economic tool, and very important to our National Security!" Trump writes.

As a reminder, China said it would retaliate Trump's tariffs earlier in the week with an additional 34% levy on US goods, which will come in to force next week.

Image source, Reuters

Trump announced new import taxes of 25% on cars and car parts entering the US from overseas, which came into effect Wednesday.

Charges on businesses importing vehicles began yesterday, and taxes on parts are set to start in May or later.

But all of the changes have made US autoworkers - and their counterparts in Canada - weary. You can hear more from them in the video below.

It's been a whirlwind day for global markets. Here's how things are looking as of 13:30 EST (18:30 BST).

• The S&P 500 index has fallen even further, and is now down 5.3%
• The Nasdaq is down 5.2%
• The Dow Jones is down 4.3%

Meanwhile:

• Oil prices are down 7.5% so far today
• The price of gold has sunk 2.4%

We'll continue to monitor the markets' response to US President Donald Trump's tariffs. Stay with us.

Image source, Getty Images

Image source, Getty Images

The White House insists Americans are "already seeing the early results" of Donald Trump's tariff move, despite US markets dropping sharply for a second consecutive day.

It says Japanese car firm Nissan has announced it will maintain two shifts at a production facility in Tennessee, before adding that General Motors announced it will boost truck production at its Indiana plant.

"In fact, President Trump has secured more private investment in his first 11 weeks than the Biden administration secured in its entire first term - and that doesn’t even include the trillions of investment from foreign governments," the White House said in a statement.

Earlier, the US Federal Reserve chair warned that the tariffs are likely to boost inflation and slow economic growth as a global stock market sell-off deepens.

• Pausing sales, furloughing workers: Every hour companies reveal impact of tariffs, writes our economics editor Faisal Islam

Faisal Islam
Economics editor

Image source, EPA-EFE/REX/Shutterstock

At one point today after China announced its retaliation, European markets were in free fall and ended 4-6% down.

The US markets were sharply down again at open, paused briefly when President Donald Trump suggested potential negotiations with Vietnam over their huge tariffs.

Markets then fell again after US Federal Reserve Chair Jerome Powell suggested the tariffs were bigger than expected and could lead to higher inflation.

He said US rate-setters would be watching to see signs of whether inflation caused by tariffs would be persistent. That means they will not be cutting in a hurry, as demanded by President Trump this afternoon.

This is going to be very volatile. The markets are not yet fully pricing in the enactment of all the tariffs announced by the USA.

China has raised the bar on retaliation. More is to come from the EU. Every hour corporations are revealing the consequences of tariff action.

Nintendo pausing its sales of its newest console. Car companies furloughing workers. Financiers pausing deals.

And now, the Federal Reserve is not coming to the rescue for the inevitable consequences of a self-inflicted policy.

China's announcement of a retaliatory tariff on the US has capped off a "horrible week" for financial markets, according to one investment analyst who fears share prices could be dragged even lower.

“We’ve now seen $4.9 trillion wiped off the value of the global stock market since the Liberation Day speech, at the time of writing,” AJ Bell's Dan Coatsworth says.

“The rapid pullback in stocks and shares over the past few days has put a dent in people’s investments, including those in the US who were meant to have benefited from Trump’s actions," Coatsworth adds.

"Instead, his tactics have caused shockwaves in every corner of the world."

• Read more: How does it affect me if share prices fall?

Tom Gerken
Technology reporter

Image source, Getty Images

Nintendo unveiled the much-anticipated Switch 2 on Wednesday, the same day US President Donald Trump announced his raft of new global tariffs.

The gaming company said then that US pre-orders for the console would open in a matter of days. But now, it has been forced to revise its plans.

"Pre-orders for Nintendo Switch 2 in the US will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions," it said in a statement.

Japan, where the gaming company is based, has been hit with a 24% tariff - a cost which the firm must swallow or pass onto consumers.

The company said it would update timings "at a later date", and confirmed that the 5 June launch date had not been pushed back.

There is no suggestion that pre-orders will be impacted in other countries, such as the UK.

Trump says that his global tariffs will boost the US economy and protect jobs - but Japan Prime Minister Shigeru Ishiba called them a "national crisis" on Friday according to Japanese media.