Displaying items by tag: tariffs

Donald Trump has paused a proposed 50% tariff on EU goods, extending the negotiation deadline to 9 July after a phone call with EC president Ursula von der Leyen. She requested more time to reach a deal, which Trump agreed to, calling the EU ‘willing to negotiate’. While both sides seek a resolution, the USA remains firm on maintaining a 10% base tariff, rejecting the EU’s recent offer to eliminate industrial tariffs and boost cooperation in AI and energy. Trump’s stance stems from concerns over the EU’s significant trade surplus and regulatory barriers. Meanwhile, the EU has approved retaliatory tariffs worth billions, set to begin on 14 July if talks fail. The escalating tensions risk sparking a costly trade war, which the IMF warns could shrink GDP on both sides. EU and US officials are set to meet next month in Paris to seek resolution. In preparation for these, the EU has requested firms to give details of their dealings with US companies: see

A federal court has blocked Donald Trump’s broad use of tariffs, ruling that the Constitution grants Congress - not the president - authority to regulate foreign commerce. The decision challenges Trump's use of the 1977 International Emergency Economic Powers Act (IEEPA) to impose sweeping import taxes, a cornerstone of his ‘America First’ agenda. Two lawsuits, one by small businesses and another by a coalition of US states, sparked the ruling. The court also blocked tariffs on China, Mexico, and Canada, imposed under immigration and drug control claims. However, tariffs on specific goods like steel and cars were not addressed. Markets responded positively, with global stocks rising and the dollar strengthening. If the ruling is upheld, affected businesses may receive tariff refunds with interest. Legal experts suggest the decision may constrain executive power over trade, sending a strong constitutional message. The White House has vowed to appeal, calling the ruling a judicial overreach. In another development, the Trump administration has asked the supreme court to overturn a judge’s ban on deporting migrants without giving them a chance to seek legal relief: see Breaking news: the ban on tariffs has been temporarily paused by an appeal court.

Donald Trump is poised to announce a significant new trade agreement between the USA and the United Kingdom, marking a key step forward in post-Brexit trade relations. A ‘heads of terms agreement’ - essentially a preliminary framework - has been reached, laying the groundwork for a full trade deal. The announcement, expected from the Oval Office, follows weeks of high-level discussions amid global trade tensions. While the deal’s full details are pending, it is anticipated to address tariff reductions, particularly on UK steel and car exports, sectors hit hard by US tariffs. The British pound rose 0.4% against the US dollar following reports of the agreement. The deal comes as the USA also continues trade negotiations with other major economies, including China, South Korea, and Japan. UK officials have stressed the importance of balancing strong transatlantic ties with ongoing EU relations. The agreement is seen as a boost for UK industry and a strategic move to strengthen bilateral economic partnerships in an uncertain global climate. See also

Britain and the EU are set to formalise a new strategic partnership to strengthen trade ties and present a united front against Donald Trump's global tariff agenda. A leaked draft declaration, dated 25 April, affirms a mutual commitment to ‘free and open trade’ and to maintaining global economic stability. The agreement will be signed at a UK-EU summit on 19 May, marking a key moment in post-Brexit relations. Meanwhile, the Government is engaged in separate negotiations with the USA, aiming to soften the impact of existing tariffs - currently 10% on UK goods and 20% on EU exports. US press secretary Karoline Leavitt said that talks are ‘moving in a very positive way’. Rachel Reeves met with US treasury secretary Scott Besent last week, emphasising that both UK-EU and UK-US trade relationships are vital. Despite Trump reportedly viewing the 10% UK tariff as a minimum, British officials remain optimistic about securing a mutually beneficial deal.

Mark Carney’s Liberal Party has secured re-election in Canada, staging a dramatic comeback. Though the Liberals have not won a clear majority, their lead over the Conservatives is decisive. Carney credited the turnaround to a rise in Canadian nationalism sparked by Donald Trump’s aggressive rhetoric and tariff threats, including calls for Canada to become America’s 51st state. These actions galvanised support for the Liberals after the slump which followed former PM Justin Trudeau’s resignation amid economic discontent. Conservative leader Pierre Poilievre, who had echoed Trump’s anti-‘woke’ rhetoric, even lost his own parliamentary seat. Carney warned that hard decisions lie ahead:  Canada must now prepare to reduce its economic dependence on the USA while navigating a tense bilateral relationship. The election took place hours after eleven people were killed by a vehicle attack at a Vancouver street fair: see

Keir Starmer has cautioned that even if the UK secures a US trade deal or lower tariffs, it will not be enough to safeguard Britain’s economic future. In response to Donald Trump’s imposition of a 10% import tax on British goods, Starmer urged the UK to adapt to a changing global landscape by strengthening cooperation with Europe and diversifying trade partnerships. Trump later announced a 90-day pause on tariffs for most countries, though uncertainty remains. Global markets reacted with volatility, and the Bank of England warned of rising global financial risks. Despite the turmoil, Starmer reaffirmed the government's fiscal discipline. Rachel Reeves is also working to establish trade agreements, including a recent £400 million deal with India, and has planned high-level meetings in Washington and Brussels. The Government aims to boost UK growth by fostering new trade alliances while safeguarding vital interests like the NHS and digital taxation.

China has announced an 84% tariff on all US imports, up from 34%, in retaliation to Donald Trump’s increased tariffs on Chinese imports (now 104%). This move escalates tensions in the ongoing trade war and sent global stock markets into further decline. Global oil prices also fell, adding to fears of a recession. However, US markets later showed some recovery after treasury secretary Scott Bessent hinted at potential trade agreements with allies. Trump is encouraging businesses to move to the USA, claiming zero tariffs and favourable conditions for companies. While China has expressed reluctance to engage in a full-scale trade war, it said it needed to protect its economy. Despite concerns over higher inflation, Trump remains optimistic about revitalising US manufacturing. He has now announced a pause in imposing the harsher tariffs, which has encouraged the stock markets. For a view about what this pause will mean, see

Donald Trump’s announcement of a universal 10% tariff on all imports into the USA, beginning on 5 April, has sparked global alarm. An additional wave of steepened tariffs on approximately sixty nations, including China and EU countries, begins on 9 April. Trump claims the move will revive American manufacturing, calling it overdue payback for unfair trade practices. However, international leaders warn the tariffs will spark economic turmoil and a potential global trade war. Ursula von der Leyen called it a ‘major blow’, while China, facing a 54% total tariff on some goods, promised ‘resolute countermeasures’. Allies like the UK and Australia have urged restraint, while others, such as Brazil and Canada, plan reciprocal actions. Japan, Taiwan, and South Korea also condemned the move. Trump’s tariffs have rattled long-standing allies, confused diplomatic partners, and raised fears of escalating economic isolation. Critics argue that US consumers may bear the burden, with higher prices and increased global instability looming. For an opinion about what a huge gamble Trump is taking, see

Keir Starmer has declared that 'all options are on the table' as Britain weighs its response to Donald Trump’s global tariffs on steel and aluminium. The EU has already imposed countermeasures, but the UK has taken a cautious approach, seeking an economic agreement rather than immediate retaliation. Trump administration insiders warn that a quick trade deal with the UK may hinge on abandoning online safety legislation - a demand Starmer is unlikely to meet. Additionally, US vice president JD Vance has prioritised free speech concerns in trade talks, challenging the UK’s regulations on tech companies. With the UK now outside both the EU and US trading blocs, businesses fear further economic strain. Steel industry leaders have urged the Government to take strong action, while some politicians argue that failing to respond will weaken the UK’s position. As tensions mount, prayers are needed for wisdom in leadership, economic stability, and fair trade agreements.  

Mark Carney, prime minister-designate, has expressed willingness to renegotiate a trade deal with Donald Trump, provided Canadian sovereignty is respected. His remarks came as Canada imposed C$29.8 billion (£16 billion) in retaliatory tariffs on US imports after Trump enacted 25% tariffs on steel and aluminium. Trump has justified the move as a national security measure, aiming to bolster domestic industries. However, Carney condemned the tariffs as ‘unjustified’, warning of economic instability. Canada, the largest foreign supplier of these metals to the USA, is heavily impacted. Ottawa’s retaliatory tariffs include steel, aluminium, and other goods, with more measures set to take effect. The Bank of Canada has cut interest rates to 2.75% to cushion the economic fallout. Meanwhile, the EU has taken strong retaliatory measures against Trump’s tariffs coming into effect: see