China's retaliatory tariffs hit US farmers particularly hardpublished at 10:43 British Summer Time 5 April

10:43 BST 5 April

Stephen McDonell
China correspondent

There had been a view that the Chinese government might hold off from imposing retaliatory tariffs on the US for at least a little while, with a view to cutting some sort of deal.

President Xi Jinping has obviously decided there is no deal to be cut, certainly not in the near future and certainly not to China's liking.

Any countermeasures are disastrous for every US company wanting to sell into this huge market.

It's especially bad for the US agricultural sector. They already had 10 or 15% tariffs on them from China's last response to the last round of Trump tariffs. Now you're adding 34% on top of that, it is essentially cutting most of them out of this market, and that's striking right into Donald Trump's heartland.

The rest of the world though is looking at the superpowers, they're at each other's throats, and economists are warning this could spread around the globe, causing potentially catastrophic damage to the world economy.

Maybe China could find new trading partners - Europe, Canada - new pathways which would cut the US out of the loop, because of its trade barriers that are going to hurt US companies and US consumers even further.

But we are definitely in uncharted territory here, and most observers would say we're just going to have to wait and see where the chips fall before deciding how bad this could get.

Image source, Getty Images

Gene Seroka, head of the Port of Los Angeles – the busiest container port in the US – has also weighed in on the impact of tariffs and retaliatory tariffs on US farmers.

Speaking to BBC Radio 4's Business Matters programme about how tariffs could disrupt trade across the Pacific, he says the effects haven't been felt straight away, but by July he expects imported cargo coming through the port to drop by "at least 10%".

And what about exports? "We may even see more damage there," Seroka says.

He points out that China's retaliatory tariffs have "especially" targeted US agriculture – the port's "largest single market of exports" – which could push other countries to look for supplies of soy, beans and corn elsewhere.

Despite his concerns, Seroka says the port will "weather this".

How?

"You have to have a steady hand on the tiller."

Image source, EPA-EFE/REX/Shutterstock

Donald Trump's tariff policy is hitting US farmers too, even though agriculture is a key focus for him.

"This is a national disgrace," John Boyd Jr, president of the National Black Farmers Association, tells the BBC.

He says the tariffs are affecting American farmers "directly", and have come during planting season – adding to the uncertainty at "a critical time".

Boyd says agriculture has been especially hard hit by the retaliatory tariffs China has placed on the US, fuelling a "trade war...[where] farmers are the first people in line to get punched in the face".

China announced a 34% retaliatory tariff yesterday, due to take effect from 10 April.

But last month, it had already imposed tariffs of 10% to 15% on some US goods, including chicken, wheat, corn and cotton.

"We see it as bad business for America's farmers," he says.

Ana Faguy
US Reporter

After looking at big companies, let’s now hear what some Americans think.

Surya Ayalasomayajula, a registered Republican from New Jersey, is worried about the impact of looming tariffs.

"Previously we never thought much about buying a small item. Now, we are checking the price and have a discussion whether it is worth buying at that moment or should we delay the purchase for some other day," he says.

His family has stopped thinking about big purchases and is now focused on cutting back and only buying essentials.

They’ve even cancelled their holiday this year.

"These Tariffs do not provide sustainable growth. They sure will destroy the economies of many countries including the USA," he says. "I see no winners at the end."

Image source, Reuters

In response to the tariffs, some major companies are indeed considering making their products in the US, just as Donald Trump expected.

Car maker Nissan is thinking about moving some of its production for US-bound vehicles to the US as early as this summer, financial newspaper Nikkei reports.

That follows news earlier this week that the company will keep two production shifts at its plant in Tennessee, after announcing plans to scale back operations there in January.

Annabelle Liang
Business reporter

Image source, Getty Images

After Apple, let's also take a look at Nike.

The Nike Air Jordan 1 is, in some ways, the iconic US shoe. It's a popular line of trainers by a large American brand, created four decades ago for basketball legend Michael Jordan.

But although Nike sells most of its products in the US, almost all of its shoes are made in Asia – a region targeted by President Donald Trump's tariffs against foreign countries he accuses of "ripping off" Americans.

Nike's shares fell 14% the day after the tariffs announcement, on fears over the impact they could have on the company's supply chain.

The tariffs' impact on the price of Nike's shoes, however, depends on how much of the cost increase it decides to pass on to customers, if any, and how long they think the tariffs will actually be in place.

Most analysts think the firm's prices will have to go up, with Nike already facing a tight bottom line.

Many other western brands - such as H&M, Adidas, Gap and Lululemon - will be facing the same predicament.

• You can read more on how might tariffs change the price of Nike's iconic trainers here

Tariffs a headache for Applepublished at 09:19 British Summer Time 5 April

09:19 BST 5 April

Zoe Kleinman
Technology editor

Image source, Reuters

Let's take a look at how the tariffs are affecting the big companies.

Many of the world’s most popular gadgets - phones, laptops, tablets, smartwatches - could be about to get a lot more expensive in the US, because so many are made in China.

The question is whether it will be the companies or their customers who will ultimately feel the pain of price hikes brought on by the tariffs.

It’s a further headache for Apple in particular, which saw its share price tumble after Donald Trump brandished his tariff board.

The tech giant has been trying to pivot its operations away from China for a while – expanding its iPhone factories in India with an ambition to make all handsets there, for example – but it’s certainly not able to close the door on the Far East in the immediate future.

It will be interesting to see how much the next iPhone costs when it’s unveiled – usually in the autumn.

Dearbail Jordan
Business reporter

It may have been overlooked amid the stock market turmoil, but the US indeed added far more jobs than expected in March – something US President Donald Trump welcomed.

"This is a drop of good news in a sea of uncertainty, a footnote given the barrage of activities this week," says Olu Sonola, head of US economic research at Fitch Ratings.

But with Trump announcing new tariffs earlier this week, it’s April’s employment data that will show how American businesses are reacting to the changing global trade landscape.

March’s figures are "looking in the rear-view mirror," says Sonola. "Next month's jobs report will be more consequential."

Image source, Reuters

Last night, Donald Trump took to his Truth Social platform to double down on his decision to impose sweeping tariffs, before they came into effect.

"Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!" he said.

Justifying the calculation his administration uses for the newly imposed tariffs, US President Donald Trump has been saying these are "reciprocal" – meaning they're based on what countries already charge the US through existing tariffs, plus non-tariff barriers.

Ben Chu from BBC Verify explains why that's not the case.

The way tariffs are calculated doesn’t show whether trade relationships are fair, says Thomas Sampson, an international trade expert from the London School of Economics.

“Fundamentally, bilateral trade deficits don't tell us anything about whether one country is taking advantage of another country or what barriers it's imposing on imports from that country,” he tells BBC's More or Less podcast.

“They just tell us about which country produces stuff that other countries want to buy.”

You can listen to the full episode for more on the maths and economics behind Trump's new policy.

Penguin island tariffs raise questions about Trump team's competencepublished at 08:18 British Summer Time 5 April

08:18 BST 5 April

Faisal Islam
Economics editor

Image source, AFP

In what some saw as light relief from serious economic challenges, Trump's formula ended up tariffing a whole series of slightly random uninhabited islands.

Some that were only inhabited by penguins, for example.

It raises some questions – certainly perceived by the trade partners that have been hit – about the competence of the whole exercise.

In the game theory of trade negotiation, they will be thinking: “What’s the process? How smart are they being?”

“If they’re tariffing a place that has no trade, and hasn’t been visited for 10 or 20 years, do they actually know what they’re doing?”

Image source, White House

We've heard from people in the Falkland Islands who are questioning the "odd" formula the US has come up with to set tariff levels for what Donald Trump calls the "worst offenders".

The image above shows that formula.

It might look complicated, but it boils down to simple maths.

First, take the trade deficit the US has with a given country. That's when the US buys more goods from that country than it sells to them.

Then, divide that number by the total value of goods the US imports from that country.

Finally, divide that number by two.

For example, the US buys more goods from China than it sells to them - so there is a goods deficit of $295bn. The total amount of goods the US buys from China is $440bn.

Divide 295 by 440 and you get 67%. Diving that by two and rounding up gets you to the 34% tariff imposed on China.

• Read more about how Trump's tariffs were calculated

Image source, Getty Images

Trump's sweeping tariffs aren't just hitting major economies like the UK and Canada – smaller ones are feeling it too, including the Falkland Islands.

Fewer than 3,700 people live on the remote South Atlantic archipelago.

They’re now bracing for the impact of 42% tariffs.

Janet Robertson, general manager of Consolidated Fishing Limited, tells the BBC World Service that the US is a key market for toothfish exports.

"We're wondering where it will all end up," Janet says.

Fishing is "by far the most important industry in the Falklands", she adds.

"The sales of toothfish into the States are a big part of that, which is partly the reason why we've ended up with this huge tariff based on the rather odd formula that has been devised by the US to determine tariff levels."

While the UK prime minister weighs up how to respond to Trump's tariffs, crowds are gathering across the US to protest.

Demonstrations are planned in all 50 states and Washington DC today, as people rally against President Donald Trump and his policies.

There have been regular protests since he took office, but organisers say they expect today to be the biggest single day of demonstrations since Trump began his second term.

Tens of thousands of Americans are expected to take part in events across the country – and there are protests planned in London and other Canadian and European cities too.

We'll follow up on the events when they happen.

Image source, PA Media

As the 10% tariffs from the US come into effect, UK Prime Minister Keir Starmer is expected to spend the weekend speaking to foreign leaders about the move.

He already spoke to his Australian and Italian counterparts last night. Downing Street says all three leaders agreed that "an all-out trade war would be extremely damaging".

A spokesperson says UK officials will "calmly continue with our preparatory work, rather than rush to retaliate".

Dearbail Jordan
Business reporter

Adam Sopher, co-founder and boss of London-based luxury popcorn brand Joe & Seph's, says they're planning to shift their business focus away from the US because of the 10% tariff the US has placed on UK exports.

US retailers usually place their Christmas orders early in the year, but this time there have been far fewer as they wait to see what happens.

Last year, Joe & Seph's made £8m in sales, with only around 2%-3% coming from the US.

"So it is not huge," says Sopher. "But the US is the biggest popcorn market in the world so we had planned that a lot of our growth would come from there."

As a result, he says the company is now looking to grow exports to the Middle East and Asia.

Dearbail Jordan
Business reporter

Organic chemicals are a huge US export for the UK, totalling close to £3bn last year.

They are used across a massive range of industries from food to make-up to engines and into agriculture.

Rather than feeling fearful about the US tariff, Robinsons Brothers reckons it may help the organic chemicals firm wrestle back American customers from cheaper overseas rivals.

Under Trump's new regime, China's imports face a 34% tariff while India's products will be taxed at 27%.

Robinsons Brothers chemicals are already taxed at 6% when they reach the US. Hanrahan says he is still trying to nail down whether the new 10% US tariff on UK goods means Robinsons Brothers' American customers will be paying an additional 4% or a total 16%.

"Either way, it is a lot less than China or India will see going into the US," he says. "So I am really hoping and seeing an opportunity for us here in one area."

The UK exported almost £60bn worth of goods to the US last year - most of which will now face a 10% tariff.

It means UK goods will be 10% more expensive for the US. Firms importing the goods can choose to pass on some or all of the cost to customers, or may decide to import fewer foreign goods.

Trump says tariffs will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment in the country.

Some UK products are exempt, including the UK's pharmaceutical sector, along with semiconductors, copper and some lumber items.

Thomas Mackintosh
Live reporter

Image source, Getty Images

Global stocks were rocked for a second consecutive day as the world continued to react to Donald Trump’s global tariffs.

Let’s round-up key moments from Friday:

• China became the first nation to issue retaliatory tariffs on all US imports – escalating an already contentious trade war. From next Thursday US goods coming into China will be hit with a 34% levy
• We are yet to hear whether other nations will introduce retaliatory measures but UK PM Keir Starmer said an "all-out trade war would be extremely damaging"
• Sticking with the UK, the FTSE 100 has suffered the biggest one day fall since the beginning of Covid five years ago
• Over in New York, Wall Street traders began the day off the back of a stronger than expected US job market report – an extra 228,000 roles were added by employers
• But, markets tumbled when the New York Stock Exchange opened on Friday. As the bell rung to end trading, stocks slumped to a second day of declines

• The White House maintains President Trump’s high-stakes gamble will ease out