Donald Trump’s trade war has expanded to cover the world, with 25% tariffs on all steel and aluminium imports to the US in effect from today.

The duties were announced in mid-February as stock market investors cheered President Trump‘s ‘America first’ agenda which saw only Mexico, Canada and China come under initial pressure.

While two rounds of tariffs on China have been enacted, 25% duties on some Canadian and most Mexican cross-border trade have been withdrawn until 2 April at the earliest.

The tariffs beginning today are designed to protect US manufacturing and bolster jobs by making foreign-made products less attractive.

They threaten to make the cost of things like cars to soft drink cans – and therefore some drinks – more expensive.

Canada is the biggest exporter of both steel and aluminium to America. However, the White House on Tuesday rowed back on a threat to double the country’s tariff to 50%.

The EU is to retaliate with €26bn of counter tariffs on US goods starting from 1 April, the European Commission said on Wednesday morning.

Commission president Ursula von der Leyen said she remained open to “meaningful dialogue” with the US.

During Mr Trump’s first term, the bloc countered with charges on products such as bourbon and jeans.

The American tariffs are also a threat to UK steel exports – worth north of £350m annually – with the bulk of that coming from stainless steel.

The business secretary Jonathan Reynolds confirmed on Wednesday morning that while he was disappointed, there would be no immediate retaliation by the UK government as negotiations continue over a wider trade deal with the US.

“I will continue to engage closely and productively with the US to press the case for UK business interests,” he said.

Any fall in demand among US customers will leave producers scrambling for new markets, though some could be directed to domestic projects within the UK.

That steel could prove attractive as China, the world’s largest producer of steel, has threatened to limit its exports in response to the Trump tariffs.

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President Trump is under growing pressure to row back, particularly in his planned battle with nearest neighbours Mexico and Canada.

Markets have turned on the tariff regime, with jitters about the effects of higher import prices souring the US economy first being seen through the currency and bond markets.

The dollar has lost around five cents against both the pound and a resurgent euro alone in the past few weeks.

Stock markets have joined in, with the combined market value of the broad S&P 500’s constituent companies down by more than $4trn on the peak seen just last month.

The big fear is that the protectionism will push the world’s largest economy into recession – a scenario Mr Trump did not deny was possible during a weekend interview.

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US firms, already also grappling the complexities associated with an expanding tariff regime, are also letting it be known that they expect damage to their own businesses.

Delta Airlines lowered its first quarter growth forecast on the back of the turmoil this week while US firms are increasingly facing product boycotts.

Travel bodies have also reported a big drop in the number of Canadians crossing the US border, with road trips down by almost a quarter last month compared to February 2023 according to Statistics Canada.

Volodymyr Zelenskyy is ready to accept a ceasefire deal – as the US says it has immediately resumed intelligence sharing and military aid with Ukraine.

In a post on Telegram after US and Ukrainian officials met in Saudi Arabia, Mr Zelenskyy said “the American side understands our arguments” and “accepts our proposals” – and that Kyiv “accepts” the US proposal of a full 30-day ceasefire with Russia.

Ukraine war latest: Ball now in Russia’s court, US says

“I want to thank President Trump for the constructiveness of the conversation between our teams,” he said.

“Today, in the conversation, the American side proposed to take the first step immediately and try to establish a full ceasefire for 30 days, not only concerning rockets, drones, and bombs, not only in the Black Sea, but also along the entire front line.

“Ukraine accepts this proposal, we consider it positive, and we are ready to take this step.”

‘Ukraine is ready for peace’

The Ukrainian president then said the US “must convince Russia to do this” and that “if the Russians agree – that’s when the silence will work”.

He added: “An important element of today’s conversation is America’s readiness to restore defensive assistance to Ukraine, as well as intelligence support.

“Ukraine is ready for peace. Russia must show whether it is ready to stop the war or continue it.

“The time has come for the full truth. I thank everyone who helps Ukraine.”

Meanwhile, in a joint statement with Kyiv following nine-hour-long talks in Jeddah, the US State Department said it will immediately lift the pause on intelligence-sharing and military aid.

A Ukrainian source told Sky News earlier this month that the US had stopped sharing all intelligence with Kyiv.

‘Ball is now in Russia’s court’

Marco Rubio, US secretary of state, also told reporters that “the ball is now in Russia’s court” after meeting with the Ukrainian delegation.

After the positive talks, Mr Rubio said “we’re going to take the offer” to Russia, adding: “We’re going to tell them this is what’s on the table, Ukraine is ready to stop shooting and start talking, and now it’ll be up to them to say yes or no.

“I hope they’re going to say yes, and if they do then I think we made great progress.”

He then said that while no deadline has been set, he hopes a deal can be reached “as soon as possible” and that “this is serious stuff, this is not Mean Girls, this is not some episode of some television show”.

“The number one goodwill gesture we could see from the Russians is to see the Ukrainian offer and reciprocate it with a yes,” Mr Rubio added.

National security adviser Mike Waltz also added it is “very clear” that Kyiv shares Donald Trump’s vision for peace and that “they share his determination to end the fighting”.

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Over in the US, Mr Trump said that officials will meet with Russia either today or tomorrow and confirmed he would invite Mr Zelenskyy back to the White House.

“We want to get the Ukraine war over with,” the US president said, before saying he hopes to have a total ceasefire in the coming days.

He also told reporters he thinks he will talk to Russian President Vladimir Putin this week – but warned “it takes two to tango”.

Last month, Mr Trump accused Mr Zelenskyy of “gambling with World War Three” in an Oval Office meeting.

US vice president JD Vance told the Ukrainian president “you should be thanking” Mr Trump “for trying to bring an end to this conflict,” sparking a tense 10-minute back-and-forth.

A press conference with the two leaders and the signing of an agreement was then cancelled.

Volodymyr Zelenskyy has said he is ready to agree to a ceasefire with Russia after successful talks with the US today.

The Ukrainian president said on Telegram that “we are ready to take this step” and said the US “must convince Russia to do this”.

Ukraine war latest: Trump warns Putin ‘it takes two to tango’

Following a meeting with Kyiv officials in Saudi Arabia, US secretary of state Marco Rubio told reporters “the ball is now in Russia’s court” and the next step is for Moscow to agree to terms.

US President Donald Trump said “we want to get the Ukraine war over with” and hopes to have a total ceasefire in the coming days.

But what has been agreed by the US and Ukraine? Here’s what we know so far…

Straight after the nine-hour talks in Jeddah, the US State Department said Washington would immediately lift the pause on intelligence sharing and military aid to Ukraine.

Mr Zelenskyy confirmed in his post that an “important element of today’s conversation is America’s readiness to restore defensive assistance to Ukraine, as well as intelligence support”.

As part of their plan, the US said both sides should agree to an immediate 30-day ceasefire which could then be mutually extended.

A joint statement from the US and Ukraine added that Washington “will communicate to Russia that Russian reciprocity is the key to achieving peace”.

The Ukrainian president added that the proposal was “not only concerning rockets, drones, and bombs, not only in the Black Sea, but also along the entire front line” – although the official statement does not mention this.

The statement also makes no mention of territory – despite Ukraine previously calling for Russia to return occupied lands, and the US saying Kyiv might have to concede territory – or the foreign deployment of soldiers in Ukraine for peacekeeping.

The joint statement does say officials discussed aid efforts as part of the peace process, including “the exchange of prisoners of war, the release of civilian detainees, and the return of forcibly transferred Ukrainian children”.

Ukraine also reiterated that European partners would be involved in the peace process, and both countries agreed a deal on Kyiv’s minerals and rare earths should “conclude as soon as possible”.

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What has Ukraine said?

Mr Zelenskyy said Ukraine agrees to the terms, adding that “the American side understands our arguments” and “accepts our proposals”.

He then said he wanted “to thank President Trump for the constructiveness of the conversation between our teams,” before adding: “Ukraine is ready for peace.

“Russia must show whether it is ready to stop the war or continue it. The time has come for the full truth.”

Ukraine’s foreign minister Andrii Sybiha – who was in Jeddah for the talks – called the meeting a step forward “both on the path to peace and in developing the strategic Ukraine-US partnership” on social media.

And speaking to Sky News’ Mark Austin, Ukrainian MP Lesia Vasylenko added that “we will have to wait and see what comes of it” but that “clearly it’s good news”.

“On first glance it’s amazing,” she said. “If we can get the Russians to agree to a ceasefire for 30 days, then our soldiers on the frontline will have a break…”

However, she said: “In previous years [Russia has] shown an absolute inability to understand what a ceasefire is and to stick to the basic rules of a ceasefire – which means not firing any weapons.”

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What has the US said?

Mr Rubio said the next step is “going to take the offer” to Russia, adding: “We’re going to tell them this is what’s on the table, Ukraine is ready to stop shooting and start talking, and now it’ll be up to them to say yes or no.

“I hope they’re going to say yes, and if they do then I think we made great progress.”

Mr Trump echoed this outside the White House, saying Ukraine has agreed to the “total ceasefire” and that “hopefully Russia will agree to it”.

He added that he will speak to Vladimir Putin in the coming days, warning the Russian president that “it takes two to tango”.

How has Russia reacted?

So far, there’s been no official reaction to the proposal other than to acknowledge Mr Trump’s comments about talks within the next week.

But ahead of the breakthrough talks in Jeddah, Russian foreign minister Sergei Lavrov said Mr Zelenskyy does not want peace.

According to state news agency TASS, Mr Lavrov added: “Mr Zelenskyy publicly declares that he does not want any ceasefire unless the Americans provide him with assurances that they will launch a nuclear strike on Russia if necessary.

“He frames the issue in much the same manner. For now, [a peace talk] is not serious.”

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Mr Zelenskyy has not called for the US to strike Russia with nuclear weapons, but did say last month that Ukraine should be given them if talks on joining NATO are protracted for years.