US tariffs on China now 145%, as Trump’s policy branded ‘worst self-inflicted wound’ by any successful economy – business live | Business

The European Union and the United Arab Emirates have agreed to launch free trade talks.

The talks will focus on trade in goods, services, investment and deepening cooperation in strategic sectors including renewable energy, green hydrogen and critical raw materials, the EU said.

The agreement to launch talks is aimed at deepening bilateral relations and promoting economic growth, the UAE said.

The EU is the UAE’s second-largest trading partner, accounting for 8.3% of the Emirati total non-oil trade.

Donald Trump’s cabinet meeting has ended after more than an hour, during which he returned to tariff negotiations repeatedly.

On the subject of the European Union, Trump said “every country is different” but that the EU would be treated as one bloc.

“We’re looking at it as one bloc,” he said.

They’ve been very tough, but they were very smart. They were ready to announce retaliation. And then they heard about what we did with respect to China and others, but China. And they said, you know, we’re going to hold back a little bit.

US treasury secretary Scott Bessent said he didn’t see “anything unusual” as stocks tumbled on Thursday.

Inflation numbers were good, oil down and the bond market “successful,” Bessent said.

Up two, down one is not a bad ratio, or up 10, down 5, and I think as we have talked about, as we go through the queue and settle with these countries, they’re gonna bring us their best offers.

A maverick economic policy announcement from a self-styled disruptor plunges the country’s currency into freefall and puts rocket boosters behind the cost of government debt, prompting warnings of an economic nuclear winter and forcing a pretty undignified U-turn.

If, on top of general concern, there has been a nagging sense of deja vu in Britain over the past 24 hours, then the ill-fated 49-day reign of Liz Truss as the UK prime minister may well be to blame.

“This is Donald Trump’s Liz Truss moment,” tweeted Ed Davey, the Liberal Democrat leader (alternatively known to followers of Elon Musk on X as that “snivelling cretin”).

For some, Trump’s gameshow host performance in the White House Rose Garden, as he unveiled the bumper tariffs on “liberation day”, had all the hallmarks of a Truss-style disaster in the making – and one on a rather grand scale.

Read the full story: Trump’s ‘Liz Truss moment’: when economic bravado meets market reality

Here’s more from Donald Trump at his cabinet meeting today, during which he warned that there will be a “transition cost” to his tariff policies.

“We’ll see,” Trump replied when asked what his next steps are for China. He added:

We would love to be able to work a deal. They’ve really taken advantage of our country for a long period of time.

Trump said he was “resetting the table” and that he had “great respect” for Chinese president Xi Jinping who has been “friend of mine for a long period of time”. Trump added:

I think that we’ll end up working out something that’s very good for both countries.

The price of eggs continues to soar for American consumers, rising by almost 6% in March even as overall inflation fell slightly.

Breaking a record high for the third consecutive month, the average cost of a dozen large eggs hit $6.23 in March – more than double the price just 12 months earlier, according to new figures released by the Bureau of Labor Statistics on Thursday.

This surpassed the previous record highs of $5.90 a dozen in February, and $4.95 in January.

The latest figures come just days after the country’s largest egg producer reported record sales and profits amid growing scrutiny over alleged price gouging.

Donald Trump defended his tariff policies at a cabinet meeting on Thursday, while warning that there may be a “transition cost”.

“We’re very, very happy with the way the country’s running. We’re trying to get the world to treat us fairly,” Trump said at the start of the meeting.

We think we’re in very good shape. We think we’re doing very well. Again there will be a transition cost, transition problems, but in the end it’s going to be a beautiful thing.

US stocks tumbled on Thursday, a day after surging on relief over Donald Trump’s pause on most of the new tariffs announced last week.

As of around noon ET, the S&P 500 index, the broad measure of the US stock market, lost 298.72 points, or 5.45%, to 5,158.18. The Dow Jones industrial average fell 1,872.86 points, or 4.61%, to 38,735.59. The tech-focused Nasdaq index lost 1,091.78 points, or 6.38%, to 16,033.20.

Here’s a recap of the day’s developments:

• Global stock markets rebounded after Trump’s announcement of the sudden pause, following the most volatile period in financial markets since the pandemic. Markets across Asia rose sharply earlier on Thursday, while European markets showed most indexes recording their biggest one-day gains since 2022.

• The market moves were further supported by concessions from the EU. The European Commission president, Ursula von der Leyen, confirmed on Thursday that the EU will put its own tariff countermeasures against the US – which were due to kick in on 15 April – on hold for 90 days.

• The overall US tariff rate on Chinese imports has risen to 145%. Trump’s announcement on Wednesday, where he said Chinese imports would be tariffed at 125% did not include the additional 20% tariff on China for its role in the production of fentanyl.

• China said Trump’s trade war with Beijing “will end in failure” for Washington. Beijings own 84% retaliatory tariffs on US imports came into effect on Thursday, while its foreign ministry said it not interested in a fight “but will not fear if the United States continues its tariff threats.

• Trump is facing accusations of market manipulation over a Truth Social post on Wednesday where he said it was a “great time to buy” just hours before he made a dramatic U-turn on his trade war that led to big rises in stock markets around the world.

• The price of eggs continues to soar for American consumers, rising by almost 6% in March to an average cost of $6.23 for a dozen large eggs. That is more than double the price just 12 months earlier.

• Former US treasury secretary Janet Yellen said Trump’s tariffs are “the worst self-inflicted wound that I have ever seen an administration impose on a well-functioning economy.” She accused the US president of having “taken a wrecking ball” to the American economy.

• Argentina’s largest workers’ unions kicked off a massive 24-hour strike on Thursday, bringing trains, planes and ports to a halt as they protested against sweeping austerity measures from libertarian president Javier Milei’s government.

Earlier we reported on CNBC saying that the overall US tariff rate on Chinese imports has risen to 145%.

The Guardian understands that to be correct. The increase follows a new executive order from Donald Trump raising the “reciprocal” tariff to 125%, up from 84%.

Former US treasury secretary Janet Yellen has said that the recent rise in Treasury yields likely played a role in former president Donald Trump’s decision to pause planned tariffs.

In an interview with CNN International, Yellen, who is also a former Federal Reserve chair, criticized Trump’s economic approach, calling it the “worst self-inflicted wound” an administration has imposed on an otherwise well-functioning economy.

Yellen also expressed concern over the direction of US economic policy under Trump, warning that such measures have increased the likelihood of a recession.

The overall US tariff rate on Chinese imports has risen to 145%, a White House official has confirmed to CNBC.

The increase follows a new executive order from Donald Trump raising tariffs to 125%, up from 84%.

An additional 20% tariff, tied to measures targeting fentanyl-related imports, brings the total to its current level.

The move marks another escalation in US trade policy toward China.

Argentina’s largest workers’ unions kicked off a massive 24-hour strike on Thursday, bringing trains, planes and ports to a halt as they protested against sweeping austerity measures from libertarian president Javier Milei’s government.

The capital, Buenos Aires, was quiet on Thursday morning, though public buses were running as usual. Banks and schools shuttered, and public hospitals and government agencies were running on skeleton staffing, Reuters reported.

On Wednesday, ahead of the strike, workers joined a weekly pensioners’ protest in front of Congress. Retirees have seen their pension funds slashed and their protests have ended in violence in recent weeks as sympathetic groups, such as soccer fans, have clashed with police.

“After this strike, they have to turn off the chainsaw,” said Rodolfo Aguiar, general secretary of the ATE Nacional union, referring to Milei’s analogy for slashing public spending.

“It’s over, there’s no more room for cuts,” Aguiar added.