UK stock market plunges amid Trump tariff chaos with emergency meetings underway – latest updates

Scotland’s Deputy First Minister has called on the UK Government to leave no stone unturned in efforts to secure a trade deal with America, as she warned tariffs imposed by US President Donald Trump will impact on some of Scotland’s key industries.

Kate Forbes said the Scotch Whisky Association had already estimated the 10 percent tariff imposed by the billionaire politician could result in between £200 million and £400 million worth of export losses annually.

On the imposition of tariffs, the Deputy First Minister said there was ‘no doubt this will have an impact on some of our key industries’.

Homeowners looking for a remortgage have been urged to shop around now for a deal amid fears inflation imported from the US could prevent interest rates from coming down.

Experts say there is a chance mortgages could become more expensive as a result of Donald Trump’s tariffs amid fears from economists the taxes will be inflationary and harm economic growth

Sarah Coles, head of personal finance, Hargreaves Lansdown, said:

Modelling the impact of so many unknowns is always tricky. There’s a risk that inflation is imported from the US and around the world, which would mean the Bank of England keeps interest rates higher for longer, which would mean more expensive mortgages.

However, right now, the market doesn’t think this will be the Bank’s biggest worry. It’s assuming that all these tariffs hit global trade, putting the Bank of England under pressure to cut rates to support growth, so it’s pricing in more cuts. The uncertainty means that if you have a remortgage looming, it’s well worth shopping around for a deal as early as possible.

If rates rise between now and when you need to remortgage, you’ll have locked in a cheaper deal, and if they fall, you can track down something more competitive.

by David Wilcock, Deputy Political Editor for MailOnline

Ireland is facing a double hammer blow from Donald Trump’s tariffs frenzy, its deputy premier warned today as MMA fighter Conor McGregor led calls for the country to quit the EU.

Simon Harris said it is the Irish Government’s ‘working assumption’ that the White House will launch a further attack aimed specifically at the pharmaceuticals industry, on top of the 20 per cent rate levelled at members of the bloc.

The medical drugs and chemicals industry employs 45,000 people in Ireland and trade with the US is worth 58 billion euros annually.

The European Union is finalising its first package of countermeasures with commission president Ursula Von Der Leyen warning Europe is prepared for further retaliation if necessary.

Read the full story here:

Kemi Badenoch has called on lessons from history as she responded to the 10 per cent tariff slapped on UK exports to the US.

The Tory leader highlighted former US President Ronald Reagan’s trade policies as she warned: ‘If we fail to learn the lessons of history we will be doomed to repeat them.’

Let’s take a look at how some countries have reacted to Donald Trump’s Liberation Day tariffs this morning as some indicate a willingness to do business, while others prepare retaliatory measures.

French government spokeswoman Sophie Primas said the EU is ‘ready for a trade war’ and is planning an ‘attack online services’ after a new 20% tax was imposed on EU goods exported to the US.

Vietnam’s prime minister Pham Minh Chinh has ordered a new ‘rapid response team’ to be set up after the country was hit with massive tariffs of 46 percent. One of the worst-hit trading partners, deputy prime minister Ho Duc Phoc has also been dispatched to the US for a ‘working visit’.

Italian Prime Minister Giorgia Meloni cleared her diary Thursday to focus on the response to a hike in US tariffs imposed on goods from the European Union, her office said. Meloni, who late Wednesday criticised the tariffs as “wrong” and said she would do everything to avoid a trade war, has cancelled her scheduled engagements, according to her office.

The Philippines reacted with ‘guarded optimism’ to Donald Trump’s sweeping tariffs, saying higher rates placed on its neighbours could present an opportunity. The longtime US ally was hit with a reciprocal levy of 17 percent, though Manila’s Department of Trade and Industry (DTI) noted the country ranked among ‘the least hit’ with Vietnam (46%), Thailand (36%) and Taiwan (32%) significantly higher

South Africa’s presidency saidthat the new U.S. tariffs underscore the need to negotiate a new bilateral trade deal with Washington to ensure long-term trade certainty after Trump imposed a 30% rate. ‘The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S., as an essential step to secure long-term trade certainty,’ the Presidency said in a statement.

Dan Coatsworth, investment analyst at AJ Bell, says:

The UK is a relative winner from Liberation Day given its 10% tariff rate is the lowest of the pack.

This suggests that Keir Starmer’s charm offensive in recent weeks and months might have paid off to some extent. Relative to the EU’s 20% tariff, the UK is looking much stronger and there is speculation Starmer would prefer to do deals to lower the rate rather than retaliate.

Scrapping the digital services tax on US tech firms is a possibility but Trump will push for everything he can get.

by Jason Groves, Political Editor of The Daily Mail

Five weeks ago, Keir Starmer basked in the glow of Donald Trump’s approval in the White House.

After biting his lip for months, it appeared that the Prime Minister’s strategy of relentlessly sucking up to the man he once branded a ‘buffoon’ was paying off.

‘I think there’s a very good chance that in the case of these two great, friendly countries we could very well end up with a real trade deal where the tariffs wouldn’t be necessary,’ the US President declared warmly at a joint press conference.

‘We’ll see if we can do something pretty quickly.’

Fast forward little more than a month and the PM last night found himself – like the rest of the world – tuning in to watch President Trump’s ‘Liberation Day’ announcement on TV to find out just how heavy the tariffs on British goods such as cars and whisky will be.

Read his full analysis here:

The European Union has insisted it is ‘ready for a trade war’ with the United States, the French government spokeswoman said today.

The 27-member bloc said it plans to ‘attack online services’ in response to Donald Trump’s new tariffs after a 20% tax was imposed on EU goods exported to the US.

Sophie Primas (pictured) told broadcaster RTL she was particularly concerned about the ‘strong’ impact on wine and spirit production in the wake of tariffs.

We are pretty sure that we are indeed going to see an adverse effect on production. We have a whole range of tools and we are ready for this trade war. Then we will look at how we can support our production industries.

Turning to Trump, Primas said the US President ‘thinks he is the master of the world.’

It is an imperialist stance that we had somewhat forgotten about but which is returning with great force and great determination.

President Emmanuel Macron will meet Thursday with representatives of French sectors impacted by tariffs at 2pm UK time.

Jonathan Reynolds told Times Radio:

Any barrier to trade, particularly between the UK and our major trading partner, which the US is, is a disappointment to me. It’s a challenge.

So, I recognise that the UK is in a better position than a lot of other countries from what was announced last night, but I was still disappointed.

He said the UK has ‘modelled every scenario’ for the impact of tariffs but it is ‘not just about the relationship between the UK and the US, but what is going on in the rest of the world’.

Donald Trump’s decision to impose the 10% tariff on the UK will be viewed as a Brexit victory by some given the European Union’s levy was doubled to 20%.

Shadow trade secretary Andrew Griffith suggested the Britain’s withdrawal from the EU was one of the main reasons the penalties were at the lower end of the scale.

Speaking last night, he said:

The silver lining is that Brexit, which Labour ministers voted against no less than 48 times, means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.

Economists agreed the difference in tariffs between the UK and EU would be seen as a Brexit benefit.

Simon French, chief economist at Panmure Liberum, said:

The first salvo in the US multilateral trade conflict was a win for the UK. Not an absolute win with new 10% baseline tariffs imposed on her, but a relative win with no indications of a broadening of scope of US tariffs to the services sector and with the UK sitting at a lower reciprocal threshold than a range of other major economies. A Brexit dividend will no doubt be claimed by those looking at the 20% levy imposed on EU goods exports to the US.

The former defence secretary has taken to X to slam Trump’s trade tariffs as using ’19th-century trade policy in the 21st century’.

And accusing Trump of taking the US and the rest of the world ‘backwards’ by imposing a wave of tariffs on foreign imports.

Donald Trump slapped a 10 per cent tariff on US imports of UK goods – and experts believe a wave of price rises will hit American consumers first, with Brits later facing similar increases.

Here, MailOnline looks at what it could mean for the UK:

• What does this mean for UK consumers?

Experts have said it will be a bumpy road ahead for Brits, despite the UK appearing to come out the least scathed in Mr Trump’s announcements.

Clarissa Hahn, an economist at Oxford Economics, told the BBC that while the initial wave of price rises will hit American consumers first, UK citizens may later face similar increases.

This would be due to the potential fluctuation of the pound, and exchange rates with other currencies, which were volatile in the wake of Mr Trump’s announcements.

• Could it affect British jobs?

The Institute for Public Policy Research think tank said that the 25 per cent car tariff puts 25,000 British jobs at risk, as one in eight cars made in the UK are sent to America.

It’s not just automotive jobs that are at risk – pharmaceutical jobs may also be at risk, the think tank said.

British pharma firms AstraZeneca and GSK make around 40 per cent and 50 per cent of their sales to the US, respectively.

While they both have manufacturing plants in the US, they also rely on the import of raw ingredients from the UK and the EU, which has been hit with a 20 per cent levy.

• Will interest rates be impacted?

Mr Trump’s tariffs are likely to affect interest rates for Britons, experts said.

Used to determine how much ordinary people have to pay to borrow money for loans on houses, cards and credit cards, high interest rates can be a blessing for those with savings and a curse for those in need of borrowing.

Currently at 4.5 per cent, economists have said they are expecting two more cuts of rated by the end of the year.

But last month, the Bank of England said it would not cut rates because of ‘intensified’ economic uncertainty caused by Mr Trump’s upturning of the economic order .

• How has the Government responded?

Prime Minister Sir Keir Starmer told business chiefs in Downing Street that ‘clearly there will be an economic impact’ from Mr Trump’s tariffs but the Government would respond with ‘cool and calm heads’.

The Business Secretary meanwhile said ‘nothing is off the table’.

Jonathan Reynolds said the UK is ‘committed’ to doing a deal with the US which he hopes ‘will mitigate the impact of what has been announced today’.

British business chiefs voiced alarm following Trump’s announcement last night , but accepted it could have been worse for the UK.

The Society of Motor Manufacturers and Traders Ltd (SMMT) described the imposition of tariffs as ‘deeply disappointing’.

• Mike Hawes, SMMT chief executive, said:

The announced imposition of a 10 per cent tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure.

These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.

• UK Steel director general, Gareth Stace, said:

Three weeks ago, President Trump delivered a cataclysmic strike to UK steel exports for US manufacturers. The new 10 per cent tariffs, stacked on top of the existing 25 per cent levies, are not only sticking the knife in again, but this time turning it in the wound for maximum effect.

• Rain Newton-Smith, chief executive of the CBI said:

Business has been clear: there are no winners in a trade war. Last night’s announcements are deeply troubling for businesses and will have significant ramifications around the world.

A cool and calm reaction from the UK Government is the right response: UK firms need a measured and proportionate approach which avoids further escalation. Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices.

The Federation of Small Businesses (FSB) said 59 per cent of small UK exporters currently sell into the US market, suggesting emergency support will be needed.

• Tina McKenzie, the FSB’s policy chair, added:

Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat.

A leading economist has predicted UK consumers will see price rises and more Chinese products on the shelves as a result of Donald Trump’s tariffs.

Joe Nellis, a professor of global economy at Cranfield School of Management and economic adviser to MHA, said:

How will this effect UK consumers? Prices will most likely rise almost immediately, particularly for goods such as electronics, so inflation is certainly a worry. However, we are likely to see some trade diversion.

Goods that would have gone from China to US could instead be diverted to the UK to avoid heavy tariffs — cheap goods could reduce inflation in UK but would impact businesses as they are forced to compete with foreign businesses flooding the market with cheap goods. If this was to happen it would take some time for the effects to kick in, and it will not even necessarily happen.

The UK economy has avoided ‘a direct blow’ from US President Donald Trump’s tariff regime but will still face a ‘significant’ impact, according to economists.

It came as he announced heavier tariff plans on a raft of other countries, including a 20 percent tariff on imports from EU nations.

Nevertheless, UK car manufacturers will be hit by a 25 percent tariff on all foreign cars imported to the US, which experts have said could put 25,000 UK jobs at risk.

Barret Kupelian, chief economist at PwC, said:

The UK avoided a direct blow – but the global economy has taken a substantial hit.

For the UK, the impact is significant – though less severe than for some other countries. In the short term, businesses face a sharp rise in uncertainty.

Foreign leaders and governments reacted with fury last night after Donald Trump announced his sweeping reciprocal tariffs which threaten to spark a global trade war.

The US President vowed to stop the US being ‘pillaged’, ‘raped’ and ‘brutalised’ so has unveiled reciprocal tariffs on all foreign nations, calling it America’s ‘Declaration of Economic Independence’.

Let’s see how the world reacted to the ‘Liberation Day’ measures:

• Canadian Prime Minister Mark Carney

It’s essential to act with purpose and with force, and that’s what we will do

• European Commission president Ursula von der Leyen

We [the EU] are already finalising the first package of countermeasures in response to tariffs on steel. We’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.

• Australian Prime Minister Anthony Albanese

This is not the act of a friend. It is the American people who will pay the biggest price for these unjustified tariffs. This is why our government will not be seeking to impose reciprocal tariffs. We will not join a race to the bottom that leads to higher prices and slower growth.

• Chinese commerce ministry

China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue.

• Irish Prime Minister Micheal Martin

We see no justification for this. More than €4.2bn worth of goods and services are traded between the EU and the US daily… Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk.

• Mexico President Claudia Sheinbaum

It’s not a question of if you impose tariffs on me, I’m going to impose tariffs on you. Our interest is in strengthening the Mexican economy.

Chris Philp, the shadow home secretary has hit out at the Prime Minister for being ‘far, far too slow’ to start trade talks with the White House.

Speaking on Radio 4’s Today Programme he added that the 10 percent baseline tariff rate on the UK ‘is not based on any negociating genius from the government’.

Dozens and dozens of countries have the 10pc tariff, which is not based on any sort of negotiating genius by the Government, it is based on the USA’s assessment of our tariffs and other obstacles.

Of course our cars, which is the largest goods sector we export, is going to be whacked with 25percent.

And I would add that we are getting a lower rate than Europe because of Brexit and the fact that we can have separate tariff arrangements.

Prime Minister Sir Keir Starmer told business chiefs he will act in Britain’s interests today as he discussed the economic impact of Donald Trump’s tariffs.

The Prime Minister has promised the Government would respond with ‘cool and calm heads’ after Trump slapped a 10% tariff on US imports of UK goods.

Sir Keir told business chiefs in Downing Street that the US President ‘acted for his country, and that is his mandate.

‘Today, I will act in Britain’s interests with mine.’

He said the UK was ‘prepared’ and that ‘one of the great strengths of this nation is our ability to keep a cool head’.

More than 25,000 UK car manufacturing jobs could be at risk if Donald Trump’s planned import tariffs are introduced, according to new analysis.

The Institute for Public Policy Research think tank says Jaguar Land Rover and the Mini factory in Cowley, Oxford, seem most exposed to US tariffs on cars.

The US is the second largest export market after the European Union for cars built in the UK.

IPPR research fellow Pranesh Narayanan said:

Trump’s tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs and putting the Government’s growth plans at jeopardy.

Global stock markets traded sharply lower on Thursday morning as investors crowded into safe haven assets in response to Donald Trump’s harsher than expected US tariff measures.

Late on Wednesday Trump finally revealed details of levies imposed on global goods imports, with the President’s ‘liberation day’ announcements promising to kick start a new golden age for US industry.

South East Asian trading partners were hardest hit, with levies ranging from 24 per cent on Japanese goods to an eye-watering 49 per cent on Cambodian goods, while the European Union will face a 20 per cent tariff.

All countries were already hit with 25 per cent tariffs on auto imports last week.

Business Secretary Jonathan Reynolds has said he is working to reverse the 10% US tariffs rather than secure an economic deal to offset them.

Asked if he was hoping to do a deal to compensate for the tariffs with economic gain, he told the BBC:

No, I want those tariffs removed. I want them removed in terms of the 10% that’s been announced. I want them removed on steel and aluminium. I want not only to remove what has been announced so far, but to strengthen that relationship.”

Talking about a potential UK-US economic deal, Mr Reynolds said there are ‘issues still to resolve’.

Senior business chiefs have headed into Downing Street this morning for urgent talks with Keir Starmer following the new 10% tariff on UK exports to the US.

Bosses of GSK, the pharmaceuticals company, Unilever, which makes consumer goods, Johnson Matthey, a chemicals company, are all locked in a meeting with the Prime Minister.

Representatives of Airbus, Shell and the car industry are also said to be involved in discussions.

Starmer has insisted the UK will take a ‘calm and pragmatic’ approach to tariffs and has yet to rule out any action including retaliatory tariffs.

These are the top five UK goods exported to the US in 2024:

• Cars: £9.0 billion
• Medicinal and pharmaceutical products: £6.5 billion
• Mechanical power generators: £4.6 billion
• Scientific instruments: £2.4 billion
• Aircraft: £2.2 billion

Global markets have tumbled today after US President Donald Trump confirmed sweeping import levies on the UK and countries across the world.

The FTSE 100 Index dropped sharply on opening, falling 122.4 points or 1.4% in the first few minutes of trading.

Markets across Asia endured punishing declines overnight, with the Nikkei in Japan down nearly 3% and China’s Hang Seng 1.5% lower after Mr Trump’s self-declared “liberation day” saw him announce hefty tariffs on imports into the US, including a 10% penalty for UK goods.

While the US markets closed higher overnight after volatile trading on Wall Street, pre-market futures trading pointed to sharp declines in Thursday trading, with the S&P 500, Nasdaq and Dow Jones all expected to open lower, dragged lower by retailers and big tech stocks.

Gold hit another new record high amid a flight to safety, while the pound rallied against a weaker dollar, up 0.9% to 1.311 US dollars, but was 0.3% lower at 1.196 euros.

The tariffs are due to come in between April 5 and 9 and make Mr Trump America’s most protectionist US president since Herbert Hoover 90 years ago.

The UK will be hit with a 10 percent tariff on all exports to the United States as Trump pledged America ‘will no longer be ripped off’.

A Downing Street source said:

We don’t want any tariffs at all, but a lower levy than others vindicates our approach. It matters because the difference between 10 per cent and 20 per cent is thousands of jobs.

Global markets went into freefall yesterday after Donald Trump declared a worldwide trade war with his ‘Liberation Day’ tariffs blitz.

The US President vowed to stop the US being ‘pillaged’, ‘raped’ and ‘brutalised’ as he unveiled reciprocal tariffs on all foreign nations, calling it America’s ‘Declaration of Economic Independence’.

He also launched his MAWA movement – a play on MAGA – to ‘Make America Wealthy Again’.

We will be covering all the latest news here in our live blog.