The EU has pleaded with China not to escalate the bitter trade war with the US.
In a call with Chinese Premier Li Qiang, European commission president Ursula von der Leyen called for a “negotiated resolution”, urging both sides to “avoid further escalation”, according to a statement released today.
It comes after the Chinese foreign ministry vowed its country would “fight till the end”, as it accused the US of “typical unilateralism and protectionist economic bullying”.
This is despite Donald Trump saying that Washington will impose an extra 50 per cent levy on top of the existing 54 per cent tariff on Chinese imports if Beijing does not withdraw the 34 per cent tariffs it had imposed on US products last week.
If neither side blinks and Mr Trump sticks to his plans, the total new levies could climb to 104 per cent on Chinese goods imported into the US this year.
Meanwhile, London’s FTSE 100 finally rebounded this morning after several days of heavy losses. The index was up more than 1 per cent within the first few hours of trading.
It follows a more positive session for Asian markets, with some indexes making gains after suffering from steep falls in previous days, despite Mr Trump’s threats to China.
Shares in US Steel are soaring
Shares of US Steel are rising ahead of the bell after President Donald Trump ordered a new national security review of Nippon Steel’s proposed bid to buy US Steel for nearly 15 billion US dollars.
President Joe Biden blocked the deal just before leaving office and Mr Trump had vowed to do the same in previous months.
Late on Monday Mr Trump ordered the Committee on Foreign Investment in the United States to review the transaction “to assist me in determining whether further action in this matter may be appropriate.”
Shares soared 16% on Monday and are up nearly 3% before the opening bell on Tuesday.
Tariff talks are not a result of sliding markets, US Treasury Secretary says
US Treasury Secretary Scott Bessent said on Tuesday that tariff negotiations are the result of multiple calls from other countries and not sliding financial markets.
“Everything is on the table”, Bessent said in an interview with CNBC.
President Donald Trump will be personally involved in negotiations, he added.
How Trump’s ‘Panican’ jibe at his tariff critics could backfire
Reeves to meet US counterpart ‘shortly’
Rachel Reeves has said she will meet her US counterpart Scott Bessent “shortly”.
With the fallout from Donald Trump’s universal tariffs growing, the chancellor said she is discussing “a range of areas” with the US Treasury secretary.
“The focus is on reducing tariff and non-tariff barriers to trade, with a particular focus on those sectors that are subject to the higher tariffs,” Ms Reeves said.
“Discussions are ongoing across a range of government departments, including the Treasury, with the United States, and I will be meeting US Treasury secretary Scott Bessent shortly,” she added.
Trump to sign executive orders to boost coal industry, sources say
Donald Trump will sign executive orders on Tuesday aimed at boosting the nation’s coal industry, sources told Reuters.
Trump, who campaigned on a promise to increase U.S. energy production and has sought to roll back a wide range of energy and environmental regulations since taking office January 20, is scheduled to sign energy related orders at the White House this afternoon.
Chancellor plays down importance of ‘buying British’
Buying British in response to Donald Trump’s tariff war is “not a good way forward”, the chancellor has warned.
Amid calls from the Liberal Democrats to encourage British consumers to take a nationalist response to the US president’s tariffs, Rachel Reeves urged against such an approach.
She said: “In terms of buying British, I think everyone will make their own decisions.“What we don’t want to see is a trade war with Britain becoming inward looking, because if every country in the world decided they only wanted to buy things produced in their country, that is not a good way forward.
“Our country has benefited hugely from access to global markets, and we will continue to want to be able to do that.”
EU expects to present a plan for a response to new tariffs early next week
A European Union (EU) spokesperson has revealed the trading bloc’s retaliation to Donald Trump’s tariffs will be presented early next week.
Dubbed ‘Liberation Day’ by the US president, all nations were included in the sweeping measures – with the UK hit by a 10 per cent tariff on all exports to the United States as Trump pledged America “will no longer be ripped off”.
EU nations face a steeper 20 per cent.
But the EU has many instruments on the table to avoid a trade war with United States, including a rise in US LNG imports, a EU spokesperson said on Tuesday.
“We are absolutely ready to discuss and negotiate with the U.S. on energy,” she said.
The EU is preparing to retaliate to the first round of tariffs, reportedly drawing up a list of US goods to be hit with a 25% tariff. The bloc previously said it would deliver a “timely, robust and calibrated” response.
‘We have your back,’ Reeves tells families
Rachel Reeves has appealed directly to families facing a financial squeeze from Donald Trump’s tariffs, with millions of savers’ pensions and other savings pots being blown apart by the trade war.
“I know that this is an anxious time for families who are worried about the cost of living, we have your backs,” she told MPs.
“And British businesses who are worried about what a changing world will mean for them… we have your backs too,” she added.
UK government working to agree trade deal with India, Reeves says
The UK government is working to agree a trade deal with India and talks will take place on Wednesday, Rachel Reeves told MPs.
The Chancellor said she had spoken to ministers in Canada, Australia, Ireland, France, Spain and the European Commission since the imposition of tariffs by Donald Trump, and would have separate discussions with India on Wednesday.
Ms Reeves said: “We will pursue these talks in earnest. Tomorrow I will hold talks with the Indian government as part of our two nations’ economic and financial dialogue, as we seek to secure a new trade deal with India.”
Trump’s tariffs having ‘huge implications for world economy’, says UK chancellor
UK Chancellor Rachel Reeves has told MPs the Donald Trump’s tariffs have had and will continue to have “huge implications for the world economy”.
She continued: “These implications have been reflected in the reaction that we’ve seen in global markets in recent days, which the financial authorities have of course been monitoring closely.
“This morning I spoke to the governor of the Bank of England, who has confirmed that markets are functioning effectively and that our banking system is resilient.”
Source: independent.co.uk
