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

Published

3 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

A pub a day to close this year, industry body warns as it calls for cut to tax burden

Published

3 hours ago

July 10, 2025

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A pub a day to close this year, industry body warns as it calls for cut to tax burden

An industry body has warned that the equivalent of more than one pub a day is set to close across Great Britain this year.

According to the British Beer and Pub Association (BBPA), an estimated 378 venues will shut down across England, Wales and Scotland.

This would amount to more than 5,600 direct job losses, the industry body warns. It has called for a reduction in the cumulative tax and regulatory burden for the hospitality sector – including cutting business rates and beer duty.

The body – representing members that brew 90% of British beer and own more than 20,000 pubs – said such measures would slow the rate at which bars are closing.

BBPA chief executive Emma McClarkin said that while pubs are trading well, “most of the money that goes into the till goes straight back out in bills and taxes”.

“For many, it’s impossible to make a profit, which all too often leads to pubs turning off the lights for the last time,” she said.

“When a pub closes, it puts people out of a job, deprives communities of their heart and soul, and hurts the local economy.”

She urged the government to “proceed with meaningful business rates reform, mitigate these eye-watering new employment and EPR (extended producer responsibility) costs, and cut beer duty”.

“We’re not asking for special treatment, we just want the sector’s rich potential unleashed,” she added.

The government has said it plans to reform the current business rates system, saying in March that an interim report on the measure would be published this summer.

From April, relief on property tax – that came in following the COVID-19 pandemic – was cut from 75% to 40%, leading to higher bills for hospitality, retail and leisure businesses.

The rate of employer National Insurance Contributions also rose from 13.8% to 15% that month, and the wage threshold was lowered from £9,100 to £5,000, under measures announced by Rachel Reeves in the October budget.

Business

Trump fires tariff threats at more nations as EU ‘ready for all scenarios’

Published

15 hours ago

July 9, 2025

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Trump fires tariff threats at more nations as EU 'ready for all scenarios'

Donald Trump has revealed a list of more nations set to face delayed ‘liberation day’ tariffs from 1 August.

He has threatened tariffs of 30% on Algeria, 25% on Brunei, 30% on Iraq, 30% on Libya, 25% on Moldova and 20% on the Philippines. Sri Lanka was later told it faced a 30% duty.

Letters setting out the planned rates – and warning against retaliation – are being sent to the leaders of each country.

Money latest: HMRC issues 600,000 fines to people who owe no tax

They were the latest to be informed of the president‘s plans after Japan and South Korea were among the first 14 nations to be told of the rates they must pay on their general exports to the US from 1 August.

The duties are on top of sectoral tariffs, covering areas such as steel and cars, already in place.

Mr Trump further warned, on Tuesday, that a 50% tariff rate on all copper imports to the US was looming.

He has also threatened a 200% rate on pharmaceuticals and is also expected to take aim at all imports of semiconductors too.

The European Union, America’s largest trading partner in combined trade, services and investment, is expected to get a letter within the next 48 hours unless further progress is made in continuing talks.

The bloc, which Mr Trump has previously claimed was created to “screw” the US, has been in negotiations with US officials for weeks and working to agree a UK-style truce by the end of the month.

The EU has retaliatory tariffs ready to deploy from 14 July but it is widely expected to delay them until such time that any heightened US duties are imposed.

It remains hopeful of a deal in the coming days but European Commission president Ursula von der Leyen told the European Parliament: “We stick to our principles, we defend our interests, we continue to work in good faith, and we get ready for all scenarios.”

While the UK’s so-called deal with Mr Trump is now in force, it remains unclear whether steelmakers will have to pay a 50% tariff rate, deployed by the US against the rest of the world, as some final details on an exemption are yet to be worked out.

The rate is currently 25%.

Business

Nvidia wins race to become first $4trn listed company

Published

18 hours ago

July 9, 2025

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Nvidia wins race to become first trn listed company

Nvidia has become the first stock market-listed company to achieve a value of $4trn.

Its share price rose by more than 2% at the market open on Wall Street to reach the milestone moment.

It was achieved just over a year since Nvidia overcame the $3trn barrier and overtook Apple, in market cap terms, in the process.

The AI-focused chipmaker has been the darling of Wall Street for many years.

Money latest: HMRC issues 600,000 fines to people who owe no tax

The value of its shares has risen by 409,825% since its market debut in 1999.

Its status has been cemented thanks to the rush for AI technology – suffering several wobbles along the way – but nothing significant when you refer to the percentage rise of the past 26 years.

The most recent pressures have come from the emergence of the low-cost chatbot DeepSeek and concerns for global AI demand as a result of Donald Trump’s trade war hitting growth.

Financial markets have been taking a more risk-on approach to the trade war since the delays to “liberation day” tariffs in April.

It’s explained by a market trend that’s become known as the TACO trade: Trump always chickens out.

It has helped US stock markets post new record highs in recent days.

The wave of optimism is down to the fact that the president is yet to follow through with the worst of his threatened tariffs on trading partners.

Corporations are also yet to report big hits to their earnings – a fact that is also propping up demand for shares.

If Mr Trump does go all-out in his trade war, as he has now threatened from 1 August, then that $4trn market value for Nvidia – and wider stock markets – could be short-lived, at least in the short term.

But market analysts believe Nvidia’s value has further to go.

Matt Britzman, senior equity analyst at Hargreaves Lansdown, said of its meteoric rise: “Once known for powering video games, NVIDIA has transformed into a foundational player in AI infrastructure.

“Its high-performance chips now drive everything from natural language processing to robotics, making them essential to training and deploying advanced AI models.

“Beyond hardware, its full-stack ecosystem – including software platforms and developer tools – helps companies scale AI quickly and efficiently. This end-to-end approach has positioned Nvidia as a cornerstone in a market where speed, scalability, and efficiency are critical.”

He added: “The key question is where it goes from here, and while it might seem strange for a company that’s just passed the $4trn mark, Nvidia still looks attractive.

“Growth is expected to slow, and it’s likely to lose some market share as competition and custom solutions ramp up. But trading at a relatively modest 32 times expected earnings, and over 50% top-line growth forecast this year, there’s still an attractive opportunity ahead.

“For investors, it remains a compelling way to gain exposure to the AI boom – not just as a participant, but as one of its architects.”