| President Trump announced a 90-day suspension and reduction of some tariffs, aiming for “fair deals for everybody.” | Tariff tensions with China escalated, with both sides raising import duties significantly—up to 245% reportedly under consideration by the US. | The UK remains focused on securing a strong trade deal with the US, emphasizing support for British jobs and industry. |
Despite a lack of clarity over what will happen within the three months, the monumental U-turn initially boosted markets, with Trump saying there will be “fair deals for everybody.”
The White House confirmed a 10% rate on most countries will be maintained, including those in the EU, plus higher 25% taxes on steel, aluminum and cars. Trade tariffs for China were increased to 125%, after they retaliated with elevated import tariffs. Beijing has since raised tariffs on US goods to 125%, amid reports the US are now considering 245% tariffs on China. Trump has confirmed negotiations with Japan have commenced.
At a cabinet meeting on 10 April, Trump described the turmoil on global markets that led to his decision to delay tariffs as “a big day,” highlighting the record stock market gains in the hours after he announced the U-turn. He added, “We’re working with a lot of different countries, and it’s all going to work out very well… we’re in good shape.”
On home shores, a Downing Street spokesperson said the UK will “coolly and calmly” continue negotiations with the US. Rachel Reeves added, “Of course we want to secure the best deal possible for British jobs and British industry… we are absolutely resolved to do everything we can.”
News came at the end of last week that the Trump administration is exempting imported smartphones, laptops and other electronics from reciprocal tariffs. Market sentiment improved initially following the shifting signals on US trade policy.