World leaders and governments have begun reacting to Donald Trump’s sweeping tariffs.
The president imposed a 10% baseline tariff on all imports – but many of America’s biggest trading partners have been hit by a far higher rate.
Speaking at an event he called “Make America Wealthy Again”, Mr Trumpcriticised foreign “cheaters” and held a chart detailing who would be paying what.
Here is some of the latest reaction.
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Trump’s tariffs explained
China, facing a 34% tax, said it would “resolutely” hit back and “take countermeasures to safeguard its own rights and interests”.
“China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue,” said the commerce ministry.
European Commission president Ursula von der Leyen said the tariffs would have “dire consequences” for millions of people around the world.
“We [the EU] are already finalising the first package of countermeasures in response to tariffs on steel,” said Von der Leyen.
“We’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
Irish Prime Minister Micheal Martin added: “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”.
Image: Donald Trump holding the signed executive order. Pic: Reuters
Japan‘s trade minister, Yoji Muto, called the tariffs “extremely regrettable” and said all options were open.
Asked if Japan would retaliate to the 24% tariff imposed, he added: “We need to decide what is best for Japan, and most effective, in a careful but bold and speedy manner.”
There will be a response from the European Union – the question is how soon, and how tough.
A symbolic reprisal is one choice – putting tariffs on classic American products such as Harley-Davidson motorbikes or bottles of bourbon.
That won’t damage the European economy, but it won’t make much of a difference, either.
There’s a reluctance to slap wide-ranging, indiscriminate tariffs simply because that would increase costs for many European manufacturers.
So something more targeted may look appealing and that could mean going after the tech giants – Facebook, Apple, Google, Amazon, for example.
Companies who have already had rows with EU regulators and are seen as being, to varying extents, close to the White House.
If Europe could specifically target Tesla, it probably would.
There are also those suggesting the EU should hold fire for the moment, confident that Trump’s tariffs will backfire and keen that the effects are visible.
One fear is that some of the cheap goods that were destined for US markets will now be diverted to Europe, flooding its market.
Another fear is how the Windsor Framework will be affected, now that there are different US tariffs on either side of the Irish border.
And finally there is that insult from the President, who called the European Union “pathetic”. A few minutes later, a senior EU diplomat sent me a message saying “the US is Brexiting the world, but you can’t stop the march of folly”.
Transatlantic relations are getting even icier.
Canadian Prime Minister Mark Carney said his country would fight back with countermeasures.
“It’s essential to act with purpose and with force, and that’s what we will do,” he told reporters.
Mexico’s president, Claudia Sheinbaum, said she wouldn’t pursue a “tit-for-tat” strategy but that a “comprehensive programme” would be announced later today.
She added: “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.”
No new tariffs were announced for Mexico or Canada, after Mr Trump previously set a 25% rate on all goods entering from both countries, before announcing some exemptions and delays.
Australian Prime Minister Anthony Albanese said the 10% tariff on his country – the lowest level – was not reciprocal – and “not the act of a friend”.
“It is the American people who will pay the biggest price for these unjustified tariffs,” he said.
“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.”
Italian Prime Minister Giorgia Meloni, seen as close ally of the US president, called the tariffs “wrong” and said they would not benefit the US.
“We will do everything we can to work towards an agreement with the United States, with the goal of avoiding a trade war that would inevitably weaken the West in favour of other global players,” she said.
Spanish Prime Minister Pedro Sanchez vowed to protect the country’s companies and workers and to “continue to be committed to an open world.”
His Swedish counterpart, Ulf Kristersson, said: “We don’t want growing trade barriers. We don’t want a trade war.
“We want to find our way back to a path of trade and cooperation together with the US, so that people in our countries can enjoy a better life.”
New Zealand trade minister Todd McClay said: “We won’t be looking to retaliate – that would put up prices on New Zealand consumers and it would be inflationary.”
He denied his country had a 20% tariff on US imports – as claimed on Mr Trump’s chart – and said it was actually below 10%.
Thousands of motorists who bought cars on finance before 2021 could be set for payouts as the Financial Conduct Authority (FCA) has said it will consult on a compensation scheme.
In a statement released on Sunday, the FCA said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.
“Where consumers have lost out, they should be appropriately compensated in an orderly, consistent and efficient way,” the statement continued.
The FCA said it estimates the cost of any scheme, including compensation and administrative costs, to be no lower than £9bn – adding that a total cost of £13.5bn is “more plausible”.
It is unclear how many people could be eligible for a pay-out. The authority estimates most individuals will probably receive less than £950 in compensation.
The consultation will be published by early October and any scheme will be finalised in time for people to start receiving compensation next year.
What motorists should do next
The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.
Anyone who has already complained does not need to do anything.
The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now.”
Its website advises drivers to complain to their finance provider first.
If you’re unhappy with the response, you can then contact the Financial Ombudsman.
The FCA has said any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.
It has warned motorists that doing so could end up costing you 30% of any compensation in fees.
The announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.
The court overturned a ruling that would have meant millions of motorists could have been due compensation over “secret” commission payments made to car dealers as part of finance arrangements.
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Car finance scandal explained
The FCA’s case concerns discretionary commission arrangements (DCAs) – a practice banned in 2021.
Under these arrangements, brokers and dealers increased the amount of interest they earned without telling buyers and received more commission for it. This is said to have then incentivised sellers to maximise interest rates.
In light of the Supreme Court’s judgment, any compensation scheme could also cover non-discretionary commission arrangements, the FCA has said. These arrangements are ones where the buyer’s interest rate did not impact the dealer’s commission.
This is because part of the court’s ruling “makes clear that non-disclosure of other facts relating to the commission can make the relationship [between a salesperson and buyer] unfair,” it said.
It was previously estimated that about 40% of car finance deals included DCAs while 99% involved a commission payment to a broker.
Nikhil Rathi, chief executive of the FCA, said: “It is clear that some firms have broken the law and our rules. It’s fair for their customers to be compensated.
“We also want to ensure that the market, relied on by millions each year, can continue to work well and consumers can get a fair deal.”
The London-listed investment group ICG is closing in on a £200m deal to buy three of Britain’s biggest regional airports.
Sky News has learnt that ICG is expected to sign a formal agreement to buy Bournemouth, Exeter and Norwich airports later this month.
The trio of sites collectively serve just over 2 million passengers annually.
ICG is buying the airports from Rigby Group, a privately owned conglomerate which has interests in the hotels, software and technology sectors.
Exeter acted as the hub for Flybe, the regional carrier which collapsed in the aftermath of the pandemic.
The deal will come amid a frenzy of activity involving Britain’s major airports as infrastructure investors seek to exploit a recovery in their valuations.
AviAlliance, which is owned by the Canadian pension fund PSP Investments, agreed to buy the parent company of Aberdeen, Glasgow and Southampton airports for £1.55bn last year.
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London City Airport’s shareholder base has just been shaken up with a deal which saw Australia’s Macquarie take a large stake.
French investor Ardian has increased its investment in Heathrow Airport as the UK’s biggest aviation hub proposes an expansion that will cost tens of billions of pounds.
Some of the world’s leading tech companies are betting big on very small innovations.
Last week, Samsung released its Galaxy Z Fold 7 which – when open – has a thickness of just 4.2mm, one of the slimmest folding phones ever to hit the market.
And Honor, a spin-off from Chinese smartphone company Huawei, will soon ship its latest foldable – the slimmest in the world. Its new Honor Magic V5 model is only 8.8mm thick when folded, and a mere 4.1mm when open.
Apple is also expected to release a foldable in the second half of next year, according to a note by analysts at JPMorgan published this week.
The race to miniaturise technology is speeding up, the ultimate prize being the next evolution in consumer devices.
Whether it be wearable devices, such as smartglasses, watches, rings or foldables – there is enormous market potential for any manufacturer that can make its products small enough.
Despite being thinner than its predecessor, Honor claims its Magic V5 also offers significant improvements to battery life, processing power, and camera capabilities.
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Hope Cao, a product expert at Honor told Sky News the progress was “due largely to our silicon carbon battery technology”. These batteries are a next-generation breakthrough that offers higher energy density compared to traditional lithium-ion batteries, and are becoming more common in consumer devices.
Image: The Magic V5. Pic: Honor
Honor also told Sky News it had used its own AI model “to precisely test and find the optimum design, which was both the slimmest, as well as, the most durable.”
However, research and development into miniaturisation goes well beyond just folding phones.
A company that’s been at the forefront of developing augmented reality (AR) glasses, Xreal, was one of the first to release a viable pair to the consumer market.
Xreal’s Ralph Jodice told Sky News “one of our biggest engineering challenges is shrinking powerful augmented reality technology into a form factor that looks and feels like everyday sunglasses”.
Xreal’s specs can display images on the lenses like something out of a sci-fi movie – allowing the wearer to connect most USB-C compatible devices such as phones, laptops and handheld consoles to an IMAX-sized screen anywhere they go.
Image: Pic: Xreal
Experts at The Metaverse Society suggest prices of these wearable devices could be lowered by shifting the burden of computing from the headset to a mobile phone or computer, whose battery and processor would power the glasses via a cable.
However, despite the daunting challenge, companies are doubling down on research and making leaps in the area.
Social media giant Meta is also vying for dominance in the miniature market.
Image: Ray-Ban Meta AI glasses are shown off at the annual British Educational Training and Technology conference. Pic: PA
Meta’s Ray-Ban sunglasses (to which they recently added an Oakley range), cannot project images on the lenses like the pair from Xreal – instead they can capture photos, footage and sound. When connected to a smartphone they can even use your phone’s 5G connection to ask Meta’s AI what you’re looking at, and ask how to save a particular type of houseplant for example.
Gareth Sutcliffe, a tech and media analyst at Enders Analysis, tells Sky News wearables “are a green field opportunity for Meta and Google” to capture a market of “hundreds of millions of users if these devices sell at similar rates to mobile phones”.
Li-Chen Miller, Meta’s vice president of product and wearables, recently said: “You’d be hard-pressed to find a more interesting engineering problem in the company than the one that’s at the intersection of these two dynamics, building glasses [with onboard technology] that people are comfortable wearing on their faces for extended periods of time … and willing to wear them around friends, family, and others nearby.”
Mr Sutcliffe points out that “Meta’s R&D spend on wearables looks extraordinary in the context of limited sales now, but should the category explode in popularity, it will be seen as a great strategic bet.”
Facebook founder Mark Zuckerberg’s long-term aim is to combine the abilities of both Xreal and the Ray-Bans into a fully functioning pair of smartglasses, capable of capturing content, as well as display graphics onscreen.
However, despite recently showcasing a prototype model, the company was at pains to point out that it was still far from ready for the consumer market.
This race is a marathon not a sprint – or as Sutcliffe tells Sky News “a decade-long slog” – but 17 years after the release of the first iPhone, people are beginning to wonder what will replace it – and it could well be a pair of glasses.