EU announces retaliation against US - as new Trump tariffs take effect

'Stop that crap' - Trump adviser responds to Sky challenge on tariffs

Here's the moment Peter Navarro, Donald Trump's trade adviser, spoke to Sky's US correspondent Mark Stone about US tariffs.

Navarro said there would be "no exemptions" to the levies unless Trump changes his mind, which Stone points out seems to be a daily occurrence in the White House.

"You don't understand what a negotiation looks like," Navarro snaps back.

"Stop with the rhetoric, stop that crap," he adds.

How has British steel reacted?

The chief of industry body UK Steel has labelled Trump's tariffs as "hugely disappointing" and said customers in the US will have to pay an extra £100m per year as a result.

Gareth Stace said some steel company contracts have already been cancelled or been put on hold since the decision.

"Surely President Trump realises that we are his friend, not his foe, and our valued customers in the US are our partners, they're not our enemies," he said.

Tariffs will "hit us hard" at a time when imports of steel into the UK are rising and the industry is "struggling" with energy prices.

The Unite union has called on the government to "act decisively to protect the steel industry" because it is "a matter of national security".

Tariffs 'threaten UK jobs'

The head of Community, the British steelworkers' union, has painted a grim picture, saying US tariffs could cause job losses.

"These US tariffs on UK steel exports are hugely damaging and they threaten jobs," Alasdair McDiarmid says.

"For the US it's also self-defeating, as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors."

Markets respond to Trump tariffs and Ukraine-Russia ceasefire hopes

It could be argued that Donald Trump was in need of some positive headlines.

It's been a horrendous past week for the self-styled champion of American industry, with stock market investors taking a revised view on his trade war.

After recent losses on the S&P 500 topped $4trn in the wake of his refusal to rule out a recession, along with a collapse in the value of the dollar, US and European markets declined further yesterday.

The falls were more measured, with the latest tariff threats emanating from the White House a key driver.

But there was a shift in focus today, with hopes of a ceasefire in the Russia-Ukraine war bolstering sentiment, according to analysts.

US-brokered talks in Saudi Arabia achieved agreement from Ukraine on the terms - with the ball now in Russia's court.

Also, seemingly, brightening the mood further was US confirmation that it had restored military and intelligence aid to Ukraine.

US futures were trading higher as dealing in Asia got into full swing.

After losses above 1% across many European indices on Tuesday, the FTSE 100 opened 0.3% higher.

The CAC in France and DAX in Frankfurt were both 0.9% up.

Gains were tempered by the EU's decision to retaliate as US tariffs on all steel and aluminium imports took effect.

Threats to the return to buying are looming large.

Higher than expected US inflation data this lunchtime, along with any new trade war salvoes, are seen as the main risks.

What are countries saying about Trump's tariffs?

With Donald Trump's trade war expanding to cover the world, how are different countries responding?

We've already seen the European Union announce retaliatory tariffs on the US (see 7.36am post), with France's European affairs minister saying this morning the bloc has the "means to go further" if it wants.

China meanwhile has said it will take "all necessary measures to safeguard its rights and interests" in the face of tariffs.

A spokesperson for the country's foreign ministry added that the US trade decision had violated World Trade Organisation rules.

Over in Japan, the chief cabinet secretary labelled Trump's imposition of tariffs "regrettable" despite Tokyo's request for an exemption.

He said the move could have a major impact on US-Japan economic ties. 

India's steel secretary said today the industry does not see a major impact from tariffs imposed by Trump on steel imports, as they do not export much steel to the region.

Australia's Prime Minister Anthony Albanese said the move was "against the spirit of our two nations' enduring friendship" but ruled out tit-for-tat duties. 

"Tariffs and escalating trade tensions are a form of economic self-harm, and a recipe for slower growth and higher inflation," he told reporters. 

He added: "Our government will continue to put forward a strong case for an exemption, noting the last time this occurred it took months for that exemption to be granted."

'Disappointing' that US imposed 25% tariffs on UK steel, says minister

Tax minister James Murray says the UK must adopt a "pragmatic" approach to Donald Trump's 25% tariffs on steel.

Speaking to Wilfred Frost on Sky News Breakfast, he said the levy is "obviously disappointing".

"We're champions of free and open trade, but our response to this is a pragmatic one," Murray says, adding the UK will continue its "cool-headed" approach.

He says Britain is in a "very different position" to the EU, which will take retaliatory measures on the US starting on 1 April, because of Sir Keir Starmer's visit to the White House last month.

"The UK and the US have been negotiating rapidly for an economic agreement, and so we're in a position where that negotiation is ongoing, and these global tariffs have landed in the middle of that work," he says.

"We don't want to be pushed off course by this, we want to carry on with our rapid negotiation towards an economic agreement."

EU retaliates against Trump tariffs with €26bn 'countermeasures'

The European Union has announced it will impose retaliatory tariffs on the US after Donald Trump stepped up his global trade war.

The European Commission said it will impose "countermeasures" affecting €26bn (£21.9bn) of US goods from 1 April after US tariffs on steel and aluminium came into force today.

The bloc's tariffs will not only impact US steel and aluminium products, but also textiles, home appliances and agricultural goods.

European Commission chief Ursula von der Leyen called Trump's 25% levies on the metals coming into the US, "unjustified trade restrictions", adding the EU "must act to protect consumers and business".

"We deeply regret this measure," she added. "We are ready to engage in meaningful dialogue."

"We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs."

What about the UK?

Sir Keir Starmer said Britain would not hit back with any counter-tariffs on the US after he discussed the levies with Trump in a phone call on Monday.

A No 10 spokesperson said: "We've been very clear that when it comes to the UK steel industry we remain prepared to defend the UK's national interest where it’s right to do so. But we will continue to take a cool-headed approach."

Trump's trade war expands with latest tariffs

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 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 - from cars to soft drink cans - more expensive.

Are Lifetime ISAs still fit for purpose?

A Lifetime ISA is a savings account that helps people save for their first home or retirement. 

You can put up to £4,000 a year in the account, and the government gives you a 25% bonus of whatever you have deposited, meaning you can earn as much as £1,000 and it's all tax-free. 

You can open an account between the ages of 18 and 39, and you can keep adding to it until you are 50. 

It's important to note that anything you deposit into a LISA counts towards the total £20,000 overall ISA allowance. 

But before you run to open one, there are lots of things to consider... 

If you are using it to buy your first home, the property needs to cost £450,000 or less, and you need to have the account for at least a year to avoid any penalties. 

If you are saving for retirement, you can start withdrawing cash at the age of 60 - taking anything out beforehand would be classed as an unauthorised withdrawal and a penalty of 25% would be applied. 

Bowes says: "This sounds fair, as you received a 25% penalty on any deposits you made, but because this 25% applies to all contributions, it actually works out as an extra 6.25% penalty on your own deposits."

"Penalty aside, the LISA can be a great savings account if you can stick to the rules – it's brilliant for first-time buyers – and the latest figures from HMRC show that 56,900 people used one to purchase their first home in 2023-24. But, with house prices rising, the £450,000 limit can be a problem in some areas," Bowes adds. 

"In fact, earlier this year, a Treasury Select Committee asked for feedback on whether the LISA is still fit for purpose, which suggests there's growing concern that it might need reform.

"While the LISA can be useful, it's not always the best choice for everyone, so it's worth thinking carefully about whether it fits your short and/or long-term plans." 

"The top two accounts are not actually offered directly by banks or building societies but instead they are financial apps that use various partner banks which will vary from time to time," Bowes notes. 

"So, you need to do your research, to check that opening a LISA with either provider will not take you over the Financial Services Compensation limit which is £85,000 per banking licence." 

-SKY NEWS