Analysts say other British carmakers may follow the decision taken by Jaguar Land Rover over Donald Trump’s tariffs. Meanwhile, Elon Musk says he hopes for a “zero-tariff zone” between Europe and the US in the future. Listen to Trump 100 analysis as you scroll.
Sunday 6 April 2025 16:28, UK
Live reporting by Daniel Binns and (earlier) Kieren Williams
Donald Trump’s worldwide tariffs will remain in place for “days and weeks”, the US commerce secretary has said.
“There is no postponing,” Howard Lutnick told CBS.
“They are definitely going to stay in place.”
Some islands inhabited only by penguins were included so countries could not use them as a loophole, he added.
“What happens is, if you leave anything off the list, the countries that try to basically arbitrage America go through those countries to us,” he commented.
Sir Keir Starmer has vowed to work with the UK’s European allies to “help maintain wider economic stability” amid potential global turmoil from Donald Trump’s new tariffs.
The prime minister made the commitment during phone calls with European Commission President Ursula von der Leyen (see post at 15:09), German Chancellor Olaf Scholz and his expected successor Friedrich Merz, Downing Street said in a statement.
A No 10 spokesperson said: “Discussing the announcement of additional tariffs by the United States, they all agreed that – as with defence and security – this is a new era for the global economy.
“Europe must rise to meet the moment and ensure the impact on hard-working people is minimised, while working closely with other countries to help maintain wider economic stability. “
The spokesperson added: “The prime minister reiterated that he was disappointed by the new tariffs and stressed he will continue to act in the UK’s national interest – remaining calm while preparing for all eventualities.”
A leading figure in Donald Trump’s administration has downplayed the stock market reaction to his new tariffs.
Scott Bessent, the US treasury secretary, dismissed share price falls as an “adjustment process” as he spoke to Sky News’s US partner NBC on Sunday.
It comes after US markets lost more than $6trn (£4.6trn) in value last week after the wide-ranging taxes on imports to the US were unveiled.
But Bessent said the White House would “hold the course” and said the shake-up in trade would benefit the US in the long term.
He told NBC News: “Markets are organic animals, you never know what the reaction is going to be.
“We get these short-term market reactions from time to time.”
Bessent continued: “The market consistently underestimates Donald Trump.
“I remember in 2016, the night President Trump won [the US election], the market crashed. And it turned out he was the most pro-business president in over a century, maybe in the history of the country. And we went on to very high, after-inflation returns for the next four years.”
He added: “There doesn’t have to be a recession, who knows how the market is going to react in a day, in a week.
“What we’re looking at is building the long-term economic fundamentals for prosperity. I think the previous administration put us on a course for financial calamity.”
The president of the European Commission had a phone call with Sir Keir Starmer earlier today to talk about the US’s new tariffs, her office has said.
Ursula von der Leyen told the UK prime minister she had “deep concern” over the levies, according to a statement from her office.
She raised worries over “the harm they pose to all countries –both through their direct and indirect effects, including on the world’s poorest nations”.
Von der Leyen also told Starmer that the EU was committed to “engaging in negotiations with the US, while making clear that the EU stands ready to defend its interests through proportionate countermeasures if necessary”.
The pair also discussed ongoing efforts to end the war in Ukraine, as well as preparations for an upcoming EU-UK summit on 19 May.
One of Donald Trump’s top economic advisers has said more than 50 countries have contacted the White House requesting trade talks.
Kevin Hassett, the director of the US’s National Economic Council, said that while many nations were “angry and retaliating” in response to the new tariffs, they were also “coming to the table”.
He told ABC News’s This Week programme: “More than 50 countries have reached out to the president to begin a negotiation, but they’re doing that because they understand that they bear a lot of the tariff.”
Hassett also insisted that Americans would not suffer because of the new levies.
He said: “I don’t think that you’re going to see a big effect on the consumer in the US, because I do think that the reason why we have a persistent long-run trade deficit is these people [nations] have very inelastic supply.”
Shell-shocked US markets are bracing for more fallout from the tariffs tomorrow.
Investors are on edge, fearing things may only get worse for US markets on Monday.
Donald Trump’s tariffs sent markets at home and abroad scrambling on his self-branded “liberation day”.
The S&P 500 logged its biggest weekly drop since March 2020 and the Nasdaq Composite on Friday ended more than 20% down from its December record high.
Other markets suffered similarly, but more volatility could be in store ahead of the 9 April deadline when reciprocal tariffs kick in.
“The playbook on this is very, very unclear for everybody,” said Jeffrey Palma, head of multi-asset solutions at Cohen & Steers.
“There is all the questions about tariffs, retaliatory tariffs, where this ends and where it shakes out.”
In the two days after Trump’s announced S&P 500 companies lost about $5trn.
“The markets could be their own worst enemy,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.
“This kind of draw down … could shake confidence and it could actually lead to weaker economic activity.”
Uncertainty over whether Trump intends to negotiate or not isn’t helping investors.
But Citi strategist Scott Chronert said: “It is not lost on us that the window is shrinking and some damage to consumer and business confidence may have been done already regardless of the negotiated ending point to follow.”
In light of Donald Trump’s tariffs, world leaders have been seeking to reassure and protect their own businesses.
We reported earlier today, see our 8.57am post, about Sir Keir Starmer looking to do the same this coming week.
And now Italy’s Giorgia Meloni is the latest to go down that path.
Speaking today, Meloni said she would act to shield her country’s businesses.
However, she faces a diplomatic tightrope walk as she’s one of Trump’s keenest allies in Europe, but must defend her own export sector which faces the EU 20% tariff.
“We did not, of course, agree with the decision of the United States, but we are ready to deploy all the tools – in terms of negotiations and economically – needed to support our businesses and sectors that could be penalised,” Meloni said in a video message to a congress of the League party, a coalition ally.
Italian media has also been reporting today that Meloni could meet Trump in Washington in the week of 14 April for talks.
She would be the latest world leader lining up to sit down with Trump.
We reported earlier on news from Taiwan – see our 11.46am post – on fears of short-selling triggered by Trump’s tariffs.
We’ve got a bit more news from the country now.
President Lai Ching-te said today he not only wouldn’t impose reciprocal trade tariffs, but he would remove trade barriers.
Alongside that, he said, Taiwanese companies would gradually increase investment in the US.
He made the comments at a meeting with Taiwanese executives.
Economy Candy’s shelves are stuffed with gummies from Germany, lollipops from Spain, chocolates from Japan and a panoply of sweets from across the US.
Owner Mitchell Cohen was asked how many of his New York shop’s items would be hit by the latest tariffs Donald Trump announced.
“I think all of them,” he said.
Few corners of the US economy will escape, directly or indirectly, the sweeping tariffs.
For a business named Economy Candy, Cohen hopes to keep the prices down, but worries they may rise in the months to come.
“I think it’s gonna be another round of this hyperinflation on some items,” said 39-year-old Cohen.
“If we’re putting tariffs everywhere, it is going to go up,” he added.
About a third of the shop’s products are imported.
It isn’t just that there’s “more German Haribo varieties than the Haribo store in Germany,” as Cohen claimed, but also sweets from elsewhere across Europe and Britain.
Cohen has every Milka bar they could find in Switzerland, all the Leone hard sweets from Italy and as many exotic Kit Kats from Japan as he cold manage.
The tariffs impacts on these products is obvious.
Pistachio Snickers bars are from India and are now subject to 26% tariffs.
Passion fruit mousse Snickers, from Portugal, now come under the 20% EU levies.
It’s an example of how American businesses are suffering from their president’s actions.
An interlude to the latest news coming out on the economic and political fallout from Donald Trump’s tariffs now.
This is the latest episode of the Trump 100 podcast.
On Day 77, US correspondents Mark Stone and David Blevins answer your questions on everything from Trump’s “liberation day” tariffs and their impact on America consumers, to his relationship with Putin and if they have plans for the Arctic, and penguins.
If you’ve got a question you’d like Mark, Martha, and James to answer, you can email it to trump100@sky.uk.
Don’t forget, you can also watch all episodes on our YouTube channel.
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