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

Published

5 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%.

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Nvidia beats revenue expectations in boost to AI investment and US stock markets

Published

6 hours ago

August 28, 2025

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Nvidia beats revenue expectations in boost to AI investment and US stock markets

The world’s most valuable company, and first to be valued at $4trn (£2.9trn), beat market expectations in keenly anticipated financial results.

Microchip maker Nvidia recorded revenues of $46.7bn (£34.6bn) in just three months up to July, latest financial data from the company showed, slightly better than Wall Street observers had expected.

The company’s performance is seen as a bellwether for artificial intelligence (AI) demand, with investors paying close attention to see whether the hype is overblown or if significant investment will pay off.

Originally a creator of gaming graphics hardware, Nvidia’s chips help power AI capability – and the UK’s most powerful supercomputer.

Nvidia’s graphics processors underpin products such as ChatGPT from OpenAI and Gemini from Google.

Other tech giants – Microsoft, Meta and Amazon – make up Nvidia’s biggest customers and are paying large sums to embed AI into their products.

Why does it matter?

Nvidia has been central to the boom in AI development and the surge in tech stock valuations, which has seen stock markets reach record highs.

It represents about 8% of the value of the US S&P 500 stock market index of companies relied on to be stable and profitable.

Strong results will continue to fuel record highs in the market. Conversely, results that fail to live up to the hype could trigger a market tumble.

Nvidia itself saw its share price rise more than 40% over the past year. Its value impacts anyone with cash in the US stock market, such as pension funds.

The S&P 500 rose 14% over the past year, and the tech-company-heavy NASDAQ gained 21%, largely thanks to Nvidia.

As such, its earnings can move markets as much as major economic or monetary policy announcements, like an interest rate decision.

What next?

Revenue rises are forecast to continue to rise as Nvidia said it expected a rise to roughly $54bn (£40bn) in the next three months, more than the $53.14bn (£39.3bn) anticipated by analysts.

This excludes any potential shipments to China as export of Nvidia’s H20 chip, designed with the Biden administration’s export crackdown on advanced AI powering chips in mind, had been banned under US national security grounds.

But in recent weeks, Nvidia and another chipmaker, AMD, reached an unprecedented agreement to pay the Trump administration a 15% portion of China sales in return for export licences to send chips to China.

There were no H20 sales at all to China in the second quarter of the year, the period for which results were released on Wednesday evening.

Previously, 13% of Nvidia’s revenue came from China, with nearly 50% coming from the US.

Market reaction

Despite the expectation-beating results, Nvidia shares were down in after-hours trading, as the massive revenue rises previously booked by the company were not repeated in the latest quarter.

Compared to a year ago, revenues rose 56% and 6% compared to the three months up to April.

The absence of Chinese sales in forecasts appeared to disappoint.

Business

Bonuses to rise for Ryanair staff spotting oversized baggage

Published

9 hours ago

August 27, 2025

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Bonuses to rise for Ryanair staff spotting oversized baggage

Ryanair staff are to get more money for spotting and charging for oversized baggage, the company’s chief executive has said.

Michael O’Leary said he made “absolutely no apology” for catching people who are “scamming the system”.

The reward for intercepting passengers travelling with bags larger than permitted will increase from €1.50 (£1.29) to €2.50 (£2.15) per bag in November, and the monthly €80 (£68.95) payment cap will be scrapped, Mr O’Leary said.

At present, the budget airline allows travellers a free 40cm x 30cm x 20cm bag, which can fit under the seat in front, and charges for further luggage up to 55cm x 40cm x 20cm in size.

Customers face fines of up to £75 for an oversized item if it is brought to the boarding gate.

“I make absolutely no apology for it whatsoever”, Mr O’Leary said.

“I am still mystified by the number of people with rucksacks who still think they’re going to get through the gate and we won’t notice the rucksack”, he added.

Around 200,000 passengers per year are charged bag fees at airport gates.

“We have more work to do to get rid of them”, Mr O’Leary said.

“We are running a very efficient, very affordable, very low-cost airline, and we’re not letting anybody get in the way.”

The airline does not support a European Union proposal to ensure customers get a free cabin bag, he said.

Air fares

After a 7% fall in air fares for the year to 31 March, Mr O’Leary said he expected ticket prices to go back up this financial year.

“We expect to get most of last year’s 7% decline, but not all,” he told reporters in a news conference.

“We have sold about 70% of our September seats, but we have another 30% to sell, and it’s those last fares, what people pay for all those last-minute bookings through the remainder of September, that will ultimately determine what average airfares are.”

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Energy price cap: Government costs to raise bills from October

Published

21 hours ago

August 27, 2025

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Energy price cap: Government costs to raise bills from October

A larger than expected hike in the energy price cap from October is largely down to higher costs being imposed by the government.

The typical sum households face paying for gas and electricity when using direct debit is to rise by 2% – or £2.93 per month – to £1,755, the energy watchdog Ofgem announced.

The current price cap is £1,720 a year. A 1% increase had been widely forecast.

The latest bill settlement, covering the final quarter of the year until the next price review takes effect from January, will affect around 20 million households.

Money latest: Should I fix? Reaction to energy price cap shift

There are 14 million others, such as those on pre-payment meters, who will also see bills rise by a similar level.

Those on fixed deals, which are immune from price cap shifts until such time as the term ends, currently stands at 20 million.

Wholesale prices – volatile since Russia’s invasion of Ukraine back in February 2022 – have been the main driver of rising bills.

But they are making little contribution to the looming increase.

Ofgem explained that government measures, such as the expansion of the warm home discount announced in June, were mainly responsible.

The discount is set to add £15 to the average annual bill.

It will provide £150 in support to 2.7 million extra people this year, bringing the total number of beneficiaries to six million.

The balance is made up from money needed to upgrade the power network.

Tim Jarvis, director general of markets at Ofgem, said: “While there is still more to do, we are seeing signs of a healthier market. There are more people on fixed tariffs saving themselves money, switching is rising as options for consumers increase, and we’ve seen increases in customer satisfaction, alongside a reduction in complaints.

“While today’s change is below inflation, we know customers might not be feeling it in their pockets. There are things you can do though – consider a fixed tariff as this could save more than £200 against the new cap. Paying by direct debit or smart pay as you go could also save you money.

“In the longer term, we will continue to see fluctuations in our energy prices until we are insulated from volatile international gas markets. That’s why we continue to work with government and the sector to diversify our energy mix to reduce the reliance on markets we do not control.”

The looming price cap lift will leave bills around the same sort of level they were in October last year but it will take hold at a time when overall inflation is higher.

Food price increases, also partly blamed on government measures such as the national insurance contributions hike imposed on employers, have led the main consumer prices index to a current level of 3.8%.

It is predicted to rise to at least 4% in the coming months, further squeezing household budgets.

Ministers argue that efforts to make the UK less reliant on natural gas, through investment in renewable power sources, will help bring down bills in future.

Energy minister Michael Shanks said: “We know that any price rise is a concern for families. Wholesale gas prices remain 75% above their levels before Russia invaded Ukraine. That is the fossil fuel penalty being paid by families, businesses and our economy.

“That is why the only answer for Britain is this government’s mission to get us off the rollercoaster of fossil fuel prices and onto clean, homegrown power we control, to bring down bills for good.

“At the same time, we are determined to take urgent action to support vulnerable families this winter. That includes expanding the £150 Warm Home Discount to 2.7 million more households and stepping up our overhaul of the energy system to increase protections for customers.”