‘No justification’: World leaders react to Trump’s tariff announcement

Published

8 months ago

April 3, 2025

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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 Trump criticised foreign “cheaters” and held a chart detailing who would be paying what.

Here is some of the latest reaction.

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”.

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.”

What to expect from the EU

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%.

Business

UK economy shrank by 0.1% in October, official figures show

Published

1 day ago

December 12, 2025

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UK economy shrank by 0.1% in October, official figures show

The UK economy contracted by 0.1% in October, according to official figures.

The surprise fall in gross domestic product (GDP) – a measure of economic output – comes after a similar unexpected 0.1% drop in September and 0% growth in August.

Economists polled by the Reuters news agency had predicted that October GDP would grow by 0.1%.

The figures, from the Office for National Statistics (ONS), represent more bad news for the chancellor over the state of the UK economy.

Commentators had warned that consumer spending was likely to be restrained in the run-up to November’s budget, amid concerns about the impact of Rachel Reeves’s potential measures on households and businesses.

UK GDP has also been hit hard by disruption to car production caused by a cyber attack on Jaguar Land Rover.

The ONS said that during October, the UK’s services sector fell by 0.3%, while construction was down 0.6%. However, production grew by 1.1%.

It found that GDP on a rolling three-month basis, to October, also fell by 0.1%.

The ONS’s director of economic statistics, Liz McKeown, said: “Within production, there was continued weakness in car manufacturing, with the industry only making a slight recovery in October from the substantial fall in output seen in the previous month.

“Overall services showed no growth in the latest three months, continuing the recent trend of slowing in this sector. There were falls in wholesale and scientific research, offset by growth in rental and leasing and retail.”

Interest rate cut ‘nailed on’

Commentators also blamed rumours and leaks in the run-up to the budget for dampening demand.

Scott Gardner, from banking giant JP Morgan, said that despite expectations of a return to growth, the economy continued to “battle a period of inconsistent productivity”.

He added: “Speculation about potential budget announcements had a numbing effect on consumers and businesses in the lead up to the chancellor’s speech at the end of November.”

Suren Thiru, from the Institute of Chartered Accountants, said the data increased the likelihood of the Bank of England cutting interest rates next week.

He said: “With these downbeat figures likely to further fuel fears among rate-setters over the health of the UK economy, a December policy loosening looks nailed on, particularly given the likely deflationary impact of the budget.”

Figures ‘extremely concerning’

Barret Kupelian, chief economist at PwC, said that while some of the blame could be attributed to the Jaguar Land Rover cyber attack, “the bigger story is that speculation around the autumn budget kept households and businesses in wait-and-see mode”.

He added: “Given the timing of the budget, November’s GDP print is likely to look similarly subdued before any post-budget effects start to show up.”

Sir Mel Stride, the Tory shadow chancellor, described the figures as “extremely concerning”, claiming they were “a direct result of Labour’s economic mismanagement”.

A Treasury spokesperson said: “We are determined to defy the forecasts on growth and create good jobs, so everyone is better off, while also helping us invest in better public services.”

Business

Appeal court delay for first Capture case as Post Office requests extension

Published

1 day ago

December 12, 2025

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Appeal court delay for first Capture case as Post Office requests extension

The first-ever Capture case has been delayed at the Court of Appeal as the Post Office asks for an extension to respond, Sky News has learned.

Pat Owen, a former sub postmistress who has since passed away, was convicted of stealing in 1998 based on evidence from computer software.

The system, known as Capture, was used in up to 2,500 branches in the 1990s, before the infamous Horizon system was introduced.

Hundreds of sub-postmasters were wrongfully convicted between 1999 and 2015 as part of the Horizon scandal.

Earlier this year, Sky News unearthed a 1998 report showing the Capture software was also faulty.

That report, commissioned by the solicitors acting for Mrs Owen in 1998, was served on the Post Office and may never have been seen by the jury in her case.

Ms Owen was given a suspended prison sentence and fought to clear her name subsequently – but died in 2003.

Her case was referred by the Criminal Cases Review Commission (CCRC) to the Court of Appeal in October.

The Post Office had until 5 December to respond to papers put forward by Mrs Owen’s defence team but they have now asked for an extension until 30 January.

Ms Owen’s daughter, Juliet Shardlow, described the family’s suffering at the lengthening wait.

“I need to emphasise the profound impact the ongoing delay is having on our family,” she said.

“The continuous uncertainty only compounds our heartache, stress, and anxiety.

“It has become the last thing I think about before I go to sleep and the first thing when I wake up.

“We have waited 27 years for justice, and this additional wait feels never-ending.”

Ms Owen’s case is the first time a conviction based on Capture has reached the Court of Appeal since the scandal was exposed.

Lawyers have said that if Ms Owen is exonerated posthumously, it may “speed up” the handling of others.

CCRC chair Dame Vera Baird also told Sky News in the summer it could be a “touchstone case” for other victims.

The CCRC is also continuing to investigate around 30 other “pre-Horizon” convictions.

A Post Office spokesperson said: “We have sought an extension of time to fully consider and respond to the CCRC’s Statement of Reasons in Ms Owen’s case.

“We deeply regret the impact our request for further time will have on Ms Owen’s family.

“We have a duty to carefully consider the evidence presented in the Statement of Reasons submitted by the CCRC and do everything we can to fully assist the Court when it considers this conviction.”

Meanwhile, the first-ever redress scheme for victims of the Post Office Capture IT scandal was launched this autumn.

The Capture Redress Scheme will provide payments of up to £300,000, and more in “exceptional” cases, to former postmasters who suffered financial losses.

Business

Daily Mail owner lines up NatWest to help fund £500m Telegraph bid

Published

2 days ago

December 11, 2025

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Daily Mail owner lines up NatWest to help fund £500m Telegraph bid

The owner of the Daily Mail is lining up one of Britain’s biggest high street lenders to help bankroll its £500m deal to buy The Daily Telegraph.

Sky News has learnt that DMGT has turned to its long-standing bank, NatWest Group, to lend a substantial chunk of the Telegraph purchase price.

City sources said on Thursday that discussions between the two were still in progress.

It was unclear how much of the consideration NatWest might finance, or how much equity DMGT intended to put up as part of the deal.

Money latest: Urgent warning over tumble dryers

Last month’s announcement that DMGT was in exclusive talks to buy Telegraph Media Group achieved a long-standing ambition of the Mail proprietor, Lord Rothermere, to own the rival right-leaning newspaper.

However, the transaction still needs to be formally submitted to the culture secretary, Lisa Nandy, who has effectively asked for details of the proposed deal by early next week.

Lengthy inquiries by the Competition and Markets Authority and Ofcom are also expected to follow.

DMGT’s exclusivity period came within days of a consortium led by RedBird Capital Partners abandoning its own deal amid opposition from within the Telegraph newsroom.

NatWest’s position as a principal lender would, in theory, be advantageous to Lord Rothermere, who will not want to be reliant on overseas financing for the deal.

The DMGT owner had originally intended to acquire a minority stake of just under 10% in the Telegraph titles as part of the RedBird-led transaction.

A previous deal proposed by a consortium including RedBird and the Abu Dhabi state-owned investment firm IMI collapsed after the government changed the law regarding foreign state ownership of national newspapers.

“I have long admired the Daily Telegraph,” Lord Rothermere said last month.

“My family and I have an enduring love of newspapers and for the journalists who make them.

“The Daily Telegraph is Britain’s largest and best quality broadsheet newspaper, and I have grown up respecting it.

“It has a remarkable history and has played a vital role in shaping Britain’s national debate over many decades.”

If the deal is completed, it would bring the Telegraph newspapers under the same stable of ownership as titles including Metro, The i Paper and New Scientist.

DMGT said in November that it planned “to invest substantially in TMG with the aim of accelerating its international expansion”.

“It will focus particularly on the USA, where the Daily Mail is already successful, with established editorial and commercial operations.”

NatWest declined to comment.