The European Union has a “strong plan” in place to retaliate against any US tariffs slapped on the bloc’s exports, EU chief Ursula von der Leyen vowed.
Ms von der Leyen said the EU – the third largest economy in the world – would “protect our interests, our people, and our companies” but would prefer to negotiate with Washington.
US president Donald Trump is set to slap levies on imported goods from several trading partners around the world, including Britain, on Wednesday.
He believes high tariffs on foreign imported goods will protect US manufacturing and boost the American economy, despite fears the move will fuel inflation.
A 25 per cent tariff on all cars imported into the US will begin on Thursday. In March, Mr Trump imposed a blanket 25 per cent tariff on US steel imports.
“We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate and we will use it,” Ms von der Leyen said. “We will protect our interests, our people, and our companies.”
Meanwhile, UK foreign secretary David Lammy said Britain is “preparing for the worst” after Downing Street admitted the UK would be hit by Mr Trump’s trade war.
Inflation boost and Trump tariffs see European bond yields fall
The cost of European government borrowing has fallen slightly today as Euro zone bond yields dropped ahead of Donald Trump’s looming tariffs announcement and better-than-anticipated inflation data fuelled hopes of a European Central Bank interest rate cut later this month.
Germany’s 10-year bond yield – the benchmark for the euro zone bloc – fell 5 basis points to 2.679 per cent, but stayed off a month low of 2.659 per cent hit on Monday.
Italy’s 10-year yield meanwhile hit its lowest level since 5 March, slipping 8 bps to 3.785 per cent.
US tariffs contributed to hit in UK business and consumer confidence, OBR chief says
The head of the UK’s budget watchdog has said that uncertainty over US tariffs were among the things that contributed to a hit in business and consumer confidence in Britain.
Richard Hughes, chair of the Office for Budget Responsibility, was asked by the cross-party Treasury committee whether business and consumer confidence took a bigger hit after October’s budget than they had predicted in their forecast.
He said that confidence “didn’t behave the way we expected it” to in the second half of 2024, and said it “fell over”.
“There were a mix of factors that contributed to it, some of which were global including just the uncertainty about what the new Trump administration was going to do to things like tariffs,” said Mr Hughes. “You’ve seen falls in business confidence around advanced economies not just in the UK.”
Other factors included increases in energy prices, which have had an impact on inflation, he said.
US State Department raises concerns over free speech in the UK in rare intervention
The US State Department has made a rare intervention in British politics, warning of its “concerns about freedom of expression in the United Kingdom”.
The department, responsible for US foreign policy, put a statement on X highlighting fears about the prosecution of anti-abortion campaigner Livia Tossici-Bolt.
It said she faces criminal charges for offering conversationwith patients seeking abortions within a legally prohibited “buffer zone” outside a clinic. “We are monitoring her case. It is important that the UK respect and protect freedom of expression,” the State Department’s dedicated democracy, human rights and labour (DRL) account posted.
It added: “US-UK relations share a mutual respect for human rights and fundamental freedoms. However, as Vice President Vance has said, we are concerned about freedom of expression in the United Kingdom.”
The Independent’s political correspondent Archie Mitchell reports:
EU vows ‘strong plan’ to hit back at Trump’s tariffs
The European Union has a “strong plan” in place to retaliate against any US tariffs slapped on the bloc’s exports, EU chief Ursula von der Leyen said.
Ms von der Leyen said the EU – the third largest economy in the world – would “protect our interests, our people, and our companies” but would prefer to negotiate with Washington.
US president Donald Trump is set to slap levies on imported goods from several trading partners around the world, including Britain, on Wednesday.
He believes high tariffs on foreign imported goods will protect US manufacturing and boost the American company, despite fears the move will fuel inflation.
A 25 per cent tariff on all cars imported into the US will begin on Thursday. In March, Mr Trump imposed a blanket 25 per cent tariff on US steel imports.
“We do not necessarily want to retaliate. But if it is necessary, we have a strong plan to retaliate and we will use it,” Ms von der Leyen said. “We will protect our interests, our people, and our companies.”
The ‘Dirty 15’ countries braced for harder hit from Trump’s tariffs as world prepares for ‘Liberation Day’
As the world economy braces for Donald Trump’s unveiling of a swathe of tariffs, some country leaders will be fearing the worst after Washington singled out a “dirty 15” list of nations.
Although not naming the countries, treasury secretary Scott Bessent said the group of nations traded heavily with the US and had high tariffs on US goods, plus held non-tariff barriers such as domestic-content production rules.
Coining the term “dirty 15”, Bessent was referring to 15 per cent of countries that account for the bulk of US trading volume – a list of nations economists expect could be hit by Trump’s tariffs.
Read the full story here:
US hits out at ‘fundamentally unfair’ global trade system
The United States has hit out at the “fundamentally unfair” global trade system.
Karoline Leavitt, the White House press secretary, said: “Our country has been one of the most open economies in the world, and we have the consumer base, hands down.”
She said it was “fundamentally unfair” that countries did not import US goods and it had “gutted our industries and hollowed out key workforces.”
Trump tariffs: How will the UK be affected – and when are they being announced?
Donald Trump’s trade war will expand across the globe on Wednesday as his administration prepares to impose a wide set of tariffs on goods imported to the US from overseas.
Dubbed ‘Liberation Day’ by the US president, it seems likely all nations will be included in the sweeping measures – the UK included.
This is despite attempts by ministers to secure an exclusive ‘carve-out’ with the Trump administration, something Sir Keir Starmer has admitted has not been agreed upon.
Read the full story here:
Mercedes denies it is considering withdrawing cheaper cars from US
Mercedes-Benz denied a report by Bloomberg News on Tuesday which said the carmaker was considering withdrawing its cheapest models in the US ahead of an added 25 per cent tariff to be imposed on auto imports.
“This is without any merit. Mercedes-Benz continues to seek sales growth for its highly desirable vehicles,” a Mercedes-Benz spokesperson said in an emailed statement in response to the report.
Bloomberg said the carmaker was considering withdrawing more entry-level models from sale as part of broader tariff contingency plans.
Donald Trump’s tariffs will be ‘effective immediately’
US tariffs on global goods will be effective immediately from tomorrow, the White House said.
US president Donald Trump is expected to slap “reciprocal tariffs” on trading partners at different rates on Wednesday.
A 25 per cent tariff on all cars imported into the US will begin on Thursday, the White House said.
In March, Mr Trump imposed a blanket 25 per cent tariff on US steel imports.
“The tariff announcement will come tomorrow. They will be effective immediately,” White House spokesperson Karoline Leavitt said.
“It would be taking place today, if not for April Fool’s Day, but tomorrow will be the day.”
Trump is ‘perfecting tariffs’ ahead of announcement, White House says
US president Donald Trump is “perfecting” his global tariffs ahead of announcing them on Wednesday, the White House said.
“I don’t want to get ahead of the head of the president, this is obviously a very big day. He is with his trade and tariff team right now,” Trump’s press secretary Karoline Leavitt said.
“He is perfecting it to make sure this is a perfect deal for the American people and the American worker.”
Source: independent.co.uk
