The three main US indexes finish the day down more than 5%, as markets continue to drop in the wake of Trump's tariffs
The UK's main share index - FTSE 100 - has its biggest one-day fall since the pandemic five years ago
Trillions of dollars have been wiped from world markets since Wednesday, when President Trump announced a raft of tariffs that upended global trade
China - which faces a 54% import tax - says it will retaliate with an additional 34% tax on US goods from next week
But in the US Rust Belt, there's little sense of panic, locals tell the BBC
Trump follows through on promise to take wrecking ball to global trade order, writes North America correspondent Anthony Zurcher
Need catching up on the basics? Read our summary and how falling share prices could affect you
'No justification' - World leaders react to Trump's global tariffs
Image source, Getty ImagesUS President Donald Trump has just posted on the social media platform Truth Social, insisting his policy on tariffs will not change.
"To the many investors coming into the United States and investing massive amounts of money, my policies will never change," he says.
"This is a great time to get rich, richer than ever before," he adds.
Dharshini David
Deputy economics editor
Even as we edge towards that deadline for the introduction of universal tariffs on goods entering America, no one can say with any more certainty than 24 hours ago what the risk is of recession globally or even in the US.
There are so many factors which will affect what happens next: whether these tariffs will last, what retaliation beyond China might occur, how businesses react to the introduction of these tariffs, and how consumers in America react to higher prices.
Movements in stock markets are highly speculative-but they do give some indication of where the pain is likely to be most concentrated.
The drop in Wall Street shares yesterday underscores fears that American consumers might be the greatest casualties of their own president’s economic policies.
Some analysts are pencilling growth of just 1% for the US economy this year a halving of previous expectations.
Image source, ReutersIf you're just joining us, here's the latest:
We'll keep bringing you updates, so stay with us.
Simon Jack
Business editor
As stock markets continue to tumble after the US imposition of sweeping and swingeing tariffs, many are asking does this qualify as a stock market "crash".
The word crash has been used sparingly over the decades and is usually reserved for a fall of over 20% from a recent peak in a day or over the course of a couple of days.
On 19 October 1987 - also known as Black Monday - the US stock market lost 23% of its value in a single day - and other stock markets had similar falls. That was most definitely a crash.
In 1929, the US stock market lost over 20% of its value in two days - and 50% within three weeks. That was the famous Wall Street Crash that ushered in the great depression of the 1930s.
By comparison, the US stock market lost nearly 5% of its value yesterday and is still 5% higher than it was a year ago.
This may yet turn into a crash - some key markets are looking very weak like banks and the price of oil. But we are not in crash territory yet - although there may be few buyers willing to prop up the market going into a weekend when the world's two biggest economies are unequivocally now in a trade war.
As one stock broker said to me this morning, if we lose 10% today it feels very "crashy".
Kevin Peachey
Cost of living correspondent
Image source, Getty ImagesMany people's initial reaction to "the markets" is that they are not directly affected, because they do not invest money.
Yet there are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments.
Pension savers mostly let experts choose where to invest this money to help it grow. Widespread falls in share prices are likely to be bad news for pension savers.
Hundreds of billions of pounds are held in defined contribution pensions at the moment.
So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet.
Stephen McDonell
China correspondent
The Chinese government has used an announcement from the country’s finance ministry to reveal the "resolute countermeasures" it had promised.
In a blow to American companies seeking access to the huge Chinese market, from next Thursday there will be a minimum additional 34% tariff on all US goods entering the country.
Beijing has also placed export controls on seven rare earth elements – crucial in the production of consumer electronics – from being sold.
China had already applied tariffs (ranging from 10% to 15%) to a range of American agricultural products after the last round of charges from the Trump administration, then China’s goods were hit by this week’s combined 54% hike, prompting this latest retaliation.
Image source, EPA-EFE/REX/ShutterstockWe've had a few more announcements from China in the last few moments, outlining new restrictions on US companies.
While earlier measures were a direct response to US tariffs, China says these latest steps are tied to national security concerns and the issue of Taiwan.
Export control
China says it has added 16 US entities to its "export control" list, claiming they have "behaviours that may endanger China's national security and interests".
This move bans the export of dual-use items – goods, software and technology that can be used for both civilian and military purposes – to those entities.
Unreliable entities
Beijing also says it has put 11 foreign entities on its "unreliable entity" list, which allows it to take punitive action against them.
The commerce ministry says these companies have engaged in "so-called military and technical cooperation with Taiwan".
Suspending import
China has also suspended the export qualifications of six US companies, citing food safety concerns.
Image source, Getty ImagesChina is on the first row of the list Trump is holding as he announces the sweeping tariffs earlier this week
As we've been reporting, China has just hit back with a 34% tariff on US goods. But why 34%?
US President Donald Trump has imposed import tariffs on China totalling 54%, but that figure didn’t come all at once.
Since returning to the White House in January, Trump raised tariffs on Chinese imports to 20%.
Then earlier this week, Washington brought in a new set of "reciprocal" tariffs for countries around the world – and the rate for China is 34%.
It means China's retaliatory tariff matches the one Trump introduced earlier this week.
Mark Broad
Business news editor
Stock markets around the world have plummeted after China announced retaliatory tariffs against the US.
The UK FTSE 100 is currently down 3.46% - but such is the scale of concern in the markets that number is falling by the second.
Among the falling stocks are InterContinental Hotels, the drug maker AstraZeneca and the mining company Rio Tinto.
The carmaker Stellantis and the German arms manufacturer Rheinmetall have seen big losses.
The price of a barrel of oil has also slumped 6% from $67 (£51) a barrel at the start of the day to $62 a barrel moments ago.
Attention will turn to the US stock market, which opens at 14:30 BST (09:30 in New York), where stock market futures are pointing to a fall of around 5%.
Mark Broad
Business news editor
Companies listed on the FTSE 100 have seen their value plummet as worries about the global economy deepen.
Barclays bank has seen a fall of over 10%, the miner Glencore is down 10% and NatWest is down 10%.
Rolls-Royce, the maker of aero engines, is down 8%.
Paul Kirby
Europe digital editor
Shares in some of Europe's biggest companies have nosedived in response to China's 34% tariff on US goods.
The Milan stock market has fallen 7%, with banking and insurance shares well down: financial group Unipol has plummeted 13%, Unicredit and Bper are down 11%, and Intesa and Banca Popolare di Sondrio have both lost 10% of their value.
The DAX in Germany lost hundreds of points in a matter of minutes as banking shares and industrials tumbled. Deutsche Bank was down over 10%, while Daimler, Mercedes-Benz and MTU Aero Engines have slipped by between 5% and 7.5%.
In France, banking groups Société Générale and BNP Paribas were down 10.8% and 8.6% respectively while car group Stellantis lost 8.5% of its value and steel firm ArcelorMittal was down 10%.
In Amsterdam Dutch insurer Aegon and banking group ING are both down by more than 9%.
Tom Espiner
Business reporter
After a shaky start on Friday, European markets are falling further after China said it would impose retaliatory tariffs of 34% on all US goods from 10 April.
Indexes in the UK, Germany and France are all down more than 3%. Asian markets also dropped earlier.
The sweeping new tariffs announced by President Donald Trump on Wednesday sparked a global stock market sell-off, with US markets suffering their worst day since the Covid pandemic hit in 2020.
Traders are worried the tariffs will push up prices and slow growth both in the US and around the world.
We’ve got more now on China’s response to US tariffs, after Beijing says it’s hitting back with a 34% tariff on American goods.
A spokesperson at the ministry of commerce says China has also filed a lawsuit with the World Trade Organization (WTO).
The US-imposed tariff "seriously violates WTO rules, damages the legitimate rights and interests of WTO members, and undermines the rules-based multilateral trading system and the international economic and trade order," the spokesperson says.
"It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this."
Image source, Getty ImagesChina has just said it will add a 34% tariff on US goods starting from 10 April.
Its finance ministry says the US tariffs on Chinese products are "not in line with international trade rules".
US President Donald Trump has announced 54% tariffs on China, which include previous duties already in place. That makes China one of the hardest-hit countries on America's tariff list.
As the UK continues talks with the US to reach a deal, some countries are bringing in measures – either to get ahead or in response.
Let's take a look at a few of them:
Oliver Smith
Business producer
Image source, Getty ImagesA 10% tariff will hurt UK businesses exporting to the US – but it could have been worse.
Still, some are seeing possible upsides.
I've been speaking to a UK electric motorbike manufacturer. The US is a growing market for him, and with his bikes seen as luxury items, he’s understandably worried.
But with Chinese rivals now facing a 34% tariff, his prices suddenly look more competitive.
A chemicals firm also tells me he’s lost some US business to companies in China and India over the years. With both countries now facing higher tariffs than the UK, he’s hoping American customers might take another look at his products.
But he’s also cautious. If Chinese and Indian goods become harder to sell in the US, they could be diverted to the UK – undercutting his business here.
That might be good news for UK buyers, but not for him.
Image source, EPAAs we've mentioned earlier, Nato foreign ministers are meeting in Brussels.
UK Foreign Secretary David Lammy has been speaking to reporters, saying the UK is "a nation that believes in open trade".
He says the UK is "engaged in discussions with the United States to strike an economic agreement and an economic deal".
He adds that the national interest will come first, and "it's in their national interests to be negotiating with the United States an economic agreement at this time, but keeping all options on the table".
Image source, Getty ImagesFarmers in the US are "disappointed" by Donald Trump's new tariffs, the head of a farmers union has told BBC Radio 4's Today programme.
"We're disappointed that they are so widespread and affect so many products," says Chad Franke, president of the Rocky Mountain Farmers Union.
He says the farmers he represents are worried about retaliatory tariffs from other countries, as agricultural goods are often the first to be hit.
All tariffs are likely to cause disruption to the industry, he adds, as farmers need to plan "years in advance", making it "really difficult to change quickly".
Faisal Islam
Economics editor
All the chips have been thrown up in the air by the American actions. All assumptions about how global trade functions will have to change.
Some of the seasoned market observers I’ve spoken to suggest that even the sharp falls we saw in the US markets yesterday are underpinned by the idea that this full tariff package won’t actually happen.
But if it does, it raises serious questions about whether the US government’s approach is undermining the strategies of some of America’s biggest blue-chip businesses.
Their current supply chain strategies involve finding the most cost-effective places in the world to make their goods. Now, they’re being told to “make American”.
There’s another factor here. Most of the world’s trade doesn’t happen through America. I've been struck by a lot of the comments from around the world – with many nations not wanting to be seen to give in to what they see as coercion from the US.
We’ve already seen the Canadians try to join forces with the EU. Some of Trump’s proxies on social media are saying world leaders should strike a deal with the US president now – get to the front of the queue – because they’re worried, I think, about a co-ordinated response.
Image source, White HouseAs we mentioned earlier, US President Donald Trump spoke to reporters on board Air Force One yesterday after announcing new tariffs.
Let’s recap what he said:
