Markets are rebounding after Donald Trump froze worldwide tariffs at 10% for 90 days – except on China, which now faces a 125% levy. Beijing’s retaliatory measures are in effect from today. Listen to the Trump 100 podcast – on the trade war between the two countries – as you scroll.
Thursday 10 April 2025 09:10, UK
Live reporting by Bhvishya Patel
Stock markets have rallied after Donald Trump reversed most of his tariffs for 90 days.
The US president’s top-level import taxes have been paused – instead a default 10% tariffs will apply to almost all countries.
China is the main exception (as well as Canada and Mexico), with Trump imposing a huge 125% tariffs after Beijing retaliated to his trade war with an 84% tariff of its own.
Trump has indicated that the 90 days will be used to strike deals and claims around 75 countries have asked the White House for talks.
After a week of tanking, US stocks made up much of the ground after Trump’s reversal last night – and Asian stocks are also up this morning.
For the UK, little has changed – it already had the lower 10% base tariff.
The background to all this is the White House believing the US has been on the wrong end of tariffs for decades. Trump hopes his policy will encourage companies to manufacture inside the US and thus „make America wealthy again“. Some have suggested his shock imposition of tariffs could also be a negotiating tactic to secure favourable trading terms.
Donald Trump’s tariffs climbdown is an „important step towards stabilising the global economy“, Ursula von der Leyen has said.
In a statement, the European Commission president says the EU still want trade talks with the US, but will „step up work to lift barriers in our own single market“ – which she describes as „our anchor of stability and resilience“.
Here’s her full statement:
Governments across the EU will be breathing a sign of relief this morning that they now face Trump’s 10% baseline tariff after his reversal, down from 20%.
Chinese foreign ministry spokesman turns to the effect Donald Trump’s tariffs are having on the rest of the world.
Lin Jian says the US is holding the throats of other countries, and that Washington’s „threat“ is an attempt to „coerce“ countries into making concessions.
He also says ties between China and Spain are an „integral“ part of Beijing’s broader relationship with the EU.
These comments come after the Spanish government said the country would pursue closer trade ties with China in the interests of its citizens and of the EU, rejecting a US warning that moving closer to Beijing would be „cutting your own throat“.
After a few questions on other topics, the briefing comes to an end.
Donald Trump has said that he is waiting for a call from China to begin trade talks, and Chinese foreign ministry spokesman Lian Jian is asked whether there has been any contact between the two countries or if China will call.
His response is emphatic: „Pressuring, threatening and extorting China is not the right way to deal with us… „If the US wants to talk it should show an attitude of equality, respect and mutual benefit.
He repeats that if the US is determined to fight a trade war „China’s response will continue to the end“.
The Chinese foreign ministry briefing begins, with spokesman Lin Jian asked about tariffs immediately.
He says the US is using tariffs as a „weapon to exert maximum pressure“ and „seek selfish gains“.
He says: „This move is against the whole world.
Referring to Beijing’s 84% retaliatory tariff, he says the „necessary countermeasures against the US’s bullying moves“ are aimed at protecting Chinese sovereignty, international fairness and the common interests of the international community.
He predicts the US move will „end in failure“.
„Tariff wars and trade wars have no winner,“ he says. „China does not want to fight them but has no fear when they come our way.“
He says if the US is determined to fight then China’s response „will continue to the end“.
The Chinese foreign ministry is holding a regular news briefing as the country’s trade war with the US escalates.
You can watch the briefing here – and we’ll bring you any tariff updates as we get them.
By Sarah Taaffe-Maguire, business and economics reporter
These market updates should come with a whiplash warning.
After steep drops yesterday, the UK’s benchmark index is now posting sizeable gains. The index of the 100 most valuable companies listed on the London Stock Exchange – the FTSE 100 – rose 1% on the open.
The bigger FTSE 250 – comprising more companies based in the UK – was up a big 2%.
With a 90-day pause on US retaliatory tariffs, we may see calmer financial market conditions, but maybe don’t take your seatbelt off yet.
UK stocks followed similar rallies for Asian markets overnight.
There’s been a lot to unpack in the past 24 hours.
To cut through it all, here’s what Donald Trump’s tariff pause entails:
‚Reciprocal‘ tariffs on hold
China tariffs increased
No change for Canada or Mexico
Car and metal tariffs remain
Sectors at risk
China’s yuan has hits its weakest level in more than 17 years.
The onshore yuan has slipped to 7.3518 a dollar in early trade, its weakest since 26 December 2007.
A weaker yuan would make Chinese exports cheaper and alleviate tariff impact on the economy.
However, a sharp decline could also increase unwanted capital outflow pressure and risk financial stability, analysts say.
Giving in to the US is „not an option for China“, our Asia correspondent Helen-Ann Smith reports.
While it is „time to take a breath for many countries“ after Trump’s 90-day tariffs pause – this is not the case for China.
„It is likely that China will again retaliate,“ Smith says.
„I think both sides have put themselves in a place where they cannot be seen to back down. Both crave dominance, and both don’t want to be seen to be losing.
„And there are questions about what that means and looks like.“
In Beijing, officials see Trump’s move as a direct attack.
„There is a genuine belief in the system in China that the US’s ultimate goal is to restrain China, undermine it and restrict its growth,“ Smith says.
„So giving in to Trump doesn’t serve any purpose for China. Giving in is not an option.“
When it comes to a deal between the US and China, she says, it is „not impossible“ but it will be „complicated“.
Be the first to get Breaking News
Install the Sky News app for free
Tariffs latest: Beijing takes fight to Trump – as global markets rally after tariff U-turn – Sky News
