Trump's tariff blitz is starting to make some Republicans uneasypublished at 07:05 British Summer Time 4 April

07:05 BST 4 April

Anthony Zurcher
North America correspondent

There is some anxiety, which you are starting to see signs of in the behaviour of the Republicans in Congress.

On Thursday, we saw several Republicans break with their party in the Senate.

You saw Chuck Grassley, a senior member of the Republican leadership and a senator from Iowa, co-sponsor a bill that would limit Donald Trump's ability to propose new tariffs and give Congress a say in extending those beyond a fixed deadline.

I think you will see more of that in the midterm elections, if it looks like the stock market pain is going to continue, and you'll start hearing from consumers more about rising prices.

This all mixes into a certain sense of unease and this will only grow if this is not temporary - as Donald Trump and his administration promise.

Image source, Reuters

US Vice-President JD Vance has told Newsmax that yesterday’s stock market drop – the sharpest since 2020 – was just “one bad day”.

“But we’re going to have a booming stock market for a long time, because we are reinvesting in the United States of America,” he says.

The vice-president says the government wants Wall Street to do well, “but we care the most about are American workers and about American small businesses. And they’re the ones who are really going to benefit from these policies.”

Vance also says the tariffs imposed “could have gone a lot higher”, but Trump is trying to “send a message that we’re going to be a little kind”.

US President Donald Trump said last night he expects the US to "boom" following his tariff announcement.

He added that nearly $7 trillion (£5.4tn) worth of investment could flow into the country once the tariffs take effect.

"The markets are going to boom, the stocks are going to boom, the country is going to boom," he said.

He also said the rest of the world was now trying to strike deals with the US.

Image source, EPA

The managing director of the International Monetary Fund said last night that the new tariffs "clearly represent a significant risk to the global outlook at a time of sluggish growth".

Kristalina Georgieva said the IMF was still looking into the "macroeconomic implications" of the measures and stressed the need to avoid actions that could do more damage to the global economy.

"We appeal to the United States and its trading partners to work constructively to resolve trade tensions and reduce uncertainty," she said.

The IMF is a global organisation with 191 member countries.

Image source, EPA-EFE/REX/Shutterstock

Japan, one of the US's biggest trading partners and its largest foreign investor, is now facing a "national crisis", Prime Minister Shigeru Ishiba says.

Speaking in the parliament earlier, Ishiba said his government is working with all parties to try to soften the impact of the 24% tariffs Japan is facing from the US.

Mariko Oi
Asia business correspondent

The stock markets in Japan, South Korea and Australia are falling for a second day, with the Nikkei 225 flirting with its lowest level in eight months.

China's markets are closed for a public holiday, but the popular video app TikTok faces its deadline either to be sold by its Chinese owner or face a ban in the US this weekend.

Donald Trump has said that if there is a sale, he would consider offering some relief from US tariffs on Chinese imports. He has said a deal involving multiple investors is very close.

Unlike the countries we just mentioned, the UK is facing a 10% tariff on all goods heading to the US. But there’s still a lot of uncertainty about what that could mean for people here.

Here’s how it could affect you and your money:

Prices could rise – or fall

Once the tariff is in place, the value of the dollar could strengthen. That might push up import costs for UK firms buying goods, which could then be passed on to UK consumers through higher prices.

But some economists say prices might actually drop at first. That’s because firms that usually sell to the US might start sending their goods to countries like the UK instead – possibly leading to a surge of cheaper goods here.

Your job could be affected

Higher prices might lead workers to ask for bigger pay rises. If UK companies see their profits squeezed, job cuts could follow. More than 25,000 jobs in the car manufacturing sector could be at risk.

Interest rates could stay high

Rates are currently at 4.5%, and economists had expected two cuts this year. But if inflation rises because of higher prices, rates might stay higher for longer.

For more detail, BBC business reporter Michael Race has the full story.

Paul Sargeant
Visual Journalism Team

President Trump revealed the tariffs for a number of major countries during his speech on Wednesday, but the full list was released a little later by the White House.

Here are the countries with the highest tariffs announced yesterday.

Vietnam has by far the largest economy among this group - with an annual GDP of around $430bn - and is the only one among the world’s top 50 largest economies.

In comparison, the Falkland Islands, despite being a British overseas territory rather than a country, has a GDP of around $370m - over 75,000 times smaller than the GDP of the United States.

On Wednesday, the US president announced taxes on goods coming into his country, including 10% on all UK imports.

Here are the BBC's Henry Zeffman and Anthony Zurcher on how the fallout has unfolded - and what might come next:

Governments around the world have been reacting to tariffs imposed on them by the US. Here is what some world leaders have said:

• European Union chief Ursula von der Leyen has said the consequences of the tariffs "will be dire for millions of people around the globe"
• UK Prime Minister Sir Keir Starmer said yesterday that his government is "taking a calm approach, acting in the national interest"
• The Chinese government has promised “resolute countermeasures”, which will hurt American companies trying to sell into China's market
• South Africa’s presidency has said that the tariffs "affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with Washington"
• In Brazil, its foreign ministry said the government is "evaluating all possible actions to ensure reciprocity in bilateral trade", according to the Reuters news agency
• Over in Australia, Prime Minister Anthony Albanese has described the tariffs as not being "the act of a friend", adding that they are "unwarranted"

You can find a list of affected countries in our article taking a look at the tariffs.

Image source, Getty Images

Stock markets in Asia have fallen for a second day after US President Donald Trump announced a salvo of tariffs hitting 180 countries and territories, as concerns grow about a global trade war.

On Friday, Japan's benchmark Nikkei 225 fell by another 3.5%, Australia's ASX 200 was down more than 2%, and Singapore's Straits Times Index was almost 3% lower.

South Korean stocks are also losing ground but that appears to be related to the country's constitutional court upholding the impeachment of President Yoon Suk Yeol.

Markets in mainland China, Hong Kong, and Taiwan are closed for public holidays.

Johanna Chisholm
Live page editor

Image source, Getty Images

Donald Trump’s far-reaching tariff offensive is proving for a second day to thwart the hopes of investors that economic stability would return before the week’s end.

The US president’s announcement of a levy of 10% on nearly all US imports starting tomorrow, and higher rates on some of America's biggest trading partners from 9 April, sent shockwaves through global markets on Thursday.

In the US – the country whose president kicked off this meltdown in his bid to remake the world’s economic order – Wall Street experienced its largest one-day loss since June 2020.

That downward trend seems poised to continue for a second day – as we’ll hear more about in our next post, Asia-Pacific shares dropped for a second day after heavy losses the day before.

We’re also continuing to follow the reaction of world leaders. From Brussels to Beijing, we’ll be bringing you the latest on how different countries are preparing to respond to Trump’s escalating trade war.