Brent Neiman, a professor at the University of Chicago Booth School of Business, said that a 25 per cent rate was erroneously added to the formula he and his colleagues created — meaning that the tariff rates Trump imposed were four times as large as they should have been.

“The Office of the US Trade Representative released its methodology and cited an academic paper produced by four economists, including me, seemingly in support of its numbers,” Neiman wrote in The New York Times. “But it got it wrong. Very wrong.”

• Read in full: Trump used my research to calculate tariffs — but got it wrong

President Trump conceded that his tariffs had been “somewhat explosive” but added that the policy was already bringing in $2 billion a day.

“The money is pouring in at a level we’ve never seen before,” he said, adding: “We have a lot of countries coming in to make deals.”

More than 70 countries had reached out to the White House to broker a deal, the president claimed.

President Trump will “listen” to those countries willing to place their “best offers” on the negotiating table, the White House press secretary has said.

Karoline Leavitt said deals would be made only if they benefit American workers and address the nation’s “crippling trade deficits”.

“President Trump’s message has been simple and consistent from the beginning: To countries around the world — bring us your best offers, and President Trump will listen,” Leavitt wrote on X.

During his press conference at the White House this afternoon, Trump said countries were rushing to negotiate “tailor-made” deals ahead of the majority of his “liberation day” tariffs going into effect toinght.

President Trump with miners in the White House before he signs an executive order supporting coal

SAUL LOEB/AFP/GETTY IMAGES

President Trump has listed how his executive order will reshape America’s coal mining industry.

“We’re slashing unnecessary regulations [on coal]; we will rapidly expedite leases for coal mining in federal lands; streamline permitting and end government bias against coal,” he said.

“We’re going to turbo-charge coal mining in America. We’re going to guarantee that we have a strong business for many years to come.”

President Trump has said that America’s mining businesses and owners would not be disrupted by the “ups and downs of the world of politics”.

Trump said his executive order would prevent future political leaders from shutting down or scaling back new mines.

“We’re going to give a guarantee that it’s not going to happen, so that if somebody comes in they cannot change it a whim,” he said. “They’re going to have to go through hell to close you up.

“You’re going to have no reason to be concerned about your future, your life or your investment.”

President Trump has once again accused the Biden administration of “decimating” America’s coal industry.

He said his predecessor shut down dozens of coal plants and put thousands of miners out of work, “destroying their lives”.

“The Biden energy policy was to put America last,” he said. “Under my administration we’re putting America first.”

Trump described the miners behind him as “really well-deserving, great American patriots”.

President Trump with a “Trump Digs Coal” sign in 2017, a campaign he relaunched last year

SAUL LOEB/AFP/GETTY IMAGES

President Trump is speaking at the White House before he signs an executive order aimed at restarting coal production in the country.

The order will direct federal agencies to loosen restrictions on coal mining, leasing and exports.

“We’re ending Biden’s war on beautiful clean coal,” Trump said in front of a crowd of miners. “We’re going to put the miners back to work. I’ve said it loud and clear. It’s time to do it. Now we need it.”

Canada will begin imposing a 25 per cent tariffs on certain American car imports from tomorrow, as the nation retaliates to President Trump’s levies.

“Canada continues to respond forcefully to all unwarranted and unreasonable tariffs,” François-Philippe Champagne, the finance minister, said today.

The tariffs, announced last week, come into effect at 12.01am and will apply to all vehicles imported from the US that are not compliant with an existing North American free trade pact.

Tariffs and trade wars have sent global markets into turmoil, with hundreds of billions of dollars wiped off the stock market since “liberation day” on April 2. Even President Trump’s closest political and business allies have not been spared — in fact, they are among the hardest hit.

Here we look at who have been the biggest losers from the chaos — and who has actually gained. Using data from the Bloomberg Billionaire Index, we have identified the tech and industry giants who have seen their value change the most.

From Elon Musk to Jim Ratcliffe, meet the super-rich feeling the pain of the global market slump.

• Read in full: The billionaires worst affected by Donald Trump’s tariffs

US stocks U-turned during evening trading on Wall Street after the White House confirmed tariffs of more than 100 per cent on some Chinese imports.

Having recovered ground after the opening bell after the deep market sell-off of recent days, the S&P 500 is now down by 1.74 per cent, or 87.84 points, on the day to 4,974.41. The Dow Jones Industrial average dropped by 0.91 per cent, or 345.99 points, to 37,619.61, while the tech-heavy Nasdaq slid by 2.18 per cent, or 339.48 points, to 15,263.78.

All three of Wall Street’s main indexes have registered double-digit percentage losses since the start of the year, making the recent market downturn among the deepest since the Second World War.

Earlier in the day, European stocks rose sharply, with the FTSE100 posting its best daily gain in over three years on hopes that the Trump administration would be open to tariff negotiations.

However, this evening the White House confirmed that a levy of 104 per cent would be imposed on some Chinese goods from tomorrow, causing US stocks to reverse their gains and slide into negative territory.

President Trump believes products like the iPhone could one day be manufactured in the US.

The world’s most popular smartphone is made up of hundreds of components sourced from dozens of countries and is primarily assembled in China. Experts warn that the White House’s tariffs will increase manufacturing costs, and that it will be difficult to recreate a US-only supply chain.

However, Karoline Leavitt, the White House press secretary, said the president “believes we have the labour, we have the workforce, we have the resources to do it”.

Speaking in today’s press conference, she highlighted Apple’s planned investments, with the company set to invest $500 billion into expanding US facilities over the next four years.

Nobody wins in a trade war, the United Nations secretary-general has warned.

António Guterres told reporters today that the impacts of the mounting economic turmoil would be especially devastating for the world’s poorest countries.

“Trade wars are extremely negative,” he said. “Nobody wins with a trade war, everybody tends to lose.”

Pete Hegseth with US troops in Rodman, western Panama

MATIAS DELCAROIX/AP

America will wrest back control of the Panama Canal from Chinese influence, the US defence secretary has said.

Pete Hegseth, who was visiting the Central American nation on Tuesday, said the US would work more closely with Panama’s security forces to “keep the canal secure and available for all nations”, adding: “China did not build this canal. China does not operate this canal and China will not weaponise this canal. Together, we will take back the Panama Canal from China’s influence.”

President Trump has repeatedly said the US should never have given away the canal to Panama, doing so in 1999. More than 40 per cent of US container traffic, valued at roughly $270 billion a year, goes through it. Trump has falsely claimed that China is operating the canal. However, experts acknowledge that China is increasing its commercial presence in the country.

President Trump believes Beijing has no choice but to strike a trade agreement with Washington, the White House has said.

Karoline Leavitt, the White House press secretary, told reporters: “The Chinese want to make a deal. They just don’t know how to do it. [Trump] believes China has to make a deal with the United States.”

Leavitt insisted that Trump was open to talks but would not compromise on his commitment to American interests. “He’s going to do what’s best for the American people,” she said. “And if they [China] reach out, he’ll be incredibly gracious.”

Earlier in the briefing, Leavitt confirmed that 104 per cent tariffs on China “will be going into effect at 12.01am tonight, so effectively tomorrow.”

Nearly 70 countries have contacted the White House “falling over themselves” to strike trade deals with the US, the White House press secretary said.

Karoline Leavitt insisted that President Trump was revitalising the US economy by pushing for the return of manufacturing jobs. “By focusing on supercharging the on-shoring of American manufacturing, the president is already delivering on his promise to usher in an economic golden age for our country,” she said. “President Trump will not break in his determination to restructure global trade.”

Karoline Leavitt at the White House today

SAUL LOEB/AFP/GETTY IMAGES

The White House has sought to play down a war of words between President Trump’s trade adviser Peter Navarro and Elon Musk, after the two clashed over the administration’s tariff policy.

Musk described Navarro as a “moron” earlier today, criticising his comments about Tesla and the broader US electric vehicle sector.

Karoline Leavitt, the White House press secretary, dismissed the row as a disagreement between two outspoken personalities. “These are two individuals who have very different views on trade and tariffs,” she said. “Boys will be boys, and we will let their public sparring continue.”

Addressing reporters directly, Leavitt added: “You guys should be very grateful that we have the most transparent administration in history.”

• Who is Karoline Leavitt? Meet Trump’s gun-loving 27-year-old press secretary

Tariffs on Chinese goods totalling 104 per cent will start being collected from one minute past midnight tonight (5.01am Wednesday UK time), officials have told Bloomberg and Fox Business.

The decision follows China’s refusal to remove its retaliatory tariffs against US exports after Trump raised levies on Beijing last Wednesday.

Trump had threatened to escalate duties if Beijing continues to respond to the tariffs, prompting a rebuke from Chinese officials. On social media earlier in the day, he said: “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!”

Han Duck-soo, South Korea’s acting president

AHN YOUNG-JOON/AFP/GETTY IMAGES

The acting president of South Korea, which faces new tariffs of 25 per cent, has said it will not join forces with China or Japan to retaliate against US levies.

Han Duck-soo, the prime minister who is temporarily holding higher office after the removal of President Yoon, told CNN: “We will not take that route. I don’t think that kind of fighting back will improve the situation dramatically.”

He sought to play down the significance of a recent trilateral meeting between the trade ministers of South Korea, China and Japan, adding: “I don’t think it will be really profitable for the three of us, and especially for Korea.”

WIN MCNAMEE/GETTY IMAGES

Join us on Thursday, May 1 for an exclusive event reflecting on President Trump’s first 100 days in office, with sharp analysis and thought-provoking debate on the policies and controversies that have defined his presidency so far. Confirmed speakers include Josh Glancy, editor of The News Review and The Times contributor, Matthew Syed. More names to be announced.

Sign up — whether you are a Times subscriber or not — here.

EVAN VUCCI/AP

Away from the day’s tariff news there comes an insight into White House life from Usha Vance, wife of JD Vance, the vice-president. Ms Vance has given her first interview as second lady to the Free Press, reflecting on her husband’s “lonely world” a heartbeat from the presidency, being booed by the public and refusing to dye her hair for the Republican convention.

Read in full.

The FTSE 100 posted its largest one-day gain since March 2022 on Tuesday, calming investors after the intense market sell-off caused by President Trump’s tariffs.

The London index rose by 2.71 per cent, or 208.45 points, to close the trading day at 7,910.53. The mid-cap FTSE 250 index rose by 3.29 per cent, or 583.96 points, to 18,349.15, the largest daily increase since late 2023.

European shares also posted historic gains on Tuesday, with the pan-European Stoxx 600 rising by 2.72 per cent. Germany’s Dax index closed up by 2.48 per cent, France’s Cac 40 index increased by 2.50 per cent and Italy’s FTSE MIB index leapt by 2.44 per cent.

In mid-afternoon trading on Wall Street, shares in America’s largest listed companies also recovered ground after the intense tariff-induced market turmoil of recent days. The S&P 500 climbed by 2.32 per cent, the tech-heavy Nasdaq Composite by 2.42 per cent and the Dow Jones industrial average 2.59 per cent.

A Nobel prizewinning economist has said this is America’s “Liz Truss moment” and the damage from Trump’s tariffs will be “long, drawn out and extremely painful”.

Simon Johnson, a professor of entrepreneurship at MIT who won the Nobel prize last year for his work comparing prosperity between nations, told Times Radio that the “US economy is so deep and so resilient … it’s just really hard to blow it up. But Mr Trump is having a go.”

From David Charter in Washington

There was bad news for Britain and all countries hoping for a quick carve out from President Trump’s tariffs from the man in charge of negotiating American trade deals.

There will be no exemptions in the “near term”, Jamieson Greer, the US trade representative, told a Senate hearing. “The president has been clear with me and with others that he does not intend to have exclusions and exemptions, especially given the nature of the action,” Greer told senators. “If you have Swiss cheese in the action, it can undermine the overall point, which is to get rid of the deficit, achieve reciprocity … The president has been clear again that he’s not doing exemptions or exceptions in the near term.”

Later Greer was pressed on why a friendly nation like Australia, with a free trade agreement and a trade deficit, still had to pay the 10 per cent baseline. Greer fell back on Trump’s desire to use income from tariffs to “get rid” of the US’s annual trade deficit, which he put at $1.2 trillion.

BRENDAN SMIALOWSKI/AFP/GETTY IMAGES

President Trump’s method of calculating which countries get hit with “reciprocal” tariffs has stunned financial markets and baffled trade experts, who say the methodology would not pass a basic economics exam.

How did his team arrive at the numbers? Read in full.

Peter Navarro, whom Elon Musk described today as a “moron” for his comments about Musk’s Tesla electric car company, has been doing the media rounds attempting to put forth the case for Trump’s tariffs.

In an article for the Financial Times Navarro wrote that the international trade system is “broken” and unfairly “rigged against America”.

Trump’s levies “will restore fairness and balance,” Navarro wrote, adding that it would also “make both the US and global economies more resilient and prosperous”. He blamed what he called the “biased rules” of the World Trade Organisation for the US’s relative economic decline, claiming it had allowed other countries to impose systematically higher tariffs and tougher non-tariff barriers on American goods. “All America wants is fairness,” he wrote.

China has condemned JD Vance, the US vice-president, as “ignorant and impolite” after he referred to Washington borrowing money from “Chinese peasants”.

“China’s position on China-US economic and trade relations has been made very clear,” Lin Jian, a foreign ministry spokesman, said. “It is surprising and sad to hear such ignorant and impolite words from this vice-president.”

On Thursday Vance had told Fox News Trump’s tariffs were an antidote to a “globalist economy” before adding: “We borrow money from Chinese peasants to buy the things those Chinese peasants manufacture. That is not a recipe for economic prosperity.”

Trump and Meloni in January

FILIPPO ATTILI/EPA

Giorgia Meloni, the Italian prime minister, will go to the US to negotiate tariff relief directly with President Trump, according to Bloomberg.

Meloni has called the tariffs a “mistake” but cautioned against European Union retaliation. She is expected to visit the US later this month, while JD Vance, the US vice-president, will fly to Rome before Easter. Antonio Tajani, the Italian foreign minister, has said it is “obvious” that tariffs would be on the agenda during his visit.

Peter Navarro with President Trump in the Oval Office

KEVIN LAMARQUE/REUTERS

Elon Musk has described President Trump’s top trade adviser as “dumber than a sack of bricks” in an escalation of tensions within the White House over tariff policy.

Musk, who has been talking up the benefits of free trade, has engaged in a war of words with Peter Navarro since the tariffs were announced. After Navarro suggested in an interview that Musk’s recent comments in favour of free trade were due to Tesla being largely an assembler of foreign-made parts, the billionaire responded: “Tesla has the most American-made cars. Navarro is truly a moron. What he says here is demonstrably false.”

The posts are the latest indication of a growing divide between Trump’s more protectionist advisers and Musk, who is leading a pressure campaign against the president’s universal tariff policy.

Karoline Leavitt, the White House press secretary, sought to play down the dispute as “whatever”, telling CNBC: “We are the most transparent administration in history expressing our disagreements in public.”

• Read more: As Trump wages trade war, his advisers fight each other

Americans have been beginning to sour on President Trump since he took office for a second time, even before his announcement of tariffs caused chaos on global stock markets.

Keep track of Trump’s popularity and performance in office with our dedicated tracker: How is Trump delivering on his key pledges — and is he more popular in his second term?

The UK has got options on the table for retaliating to US tariffs “if necessary”, British prime minister Sir Keir Starmer has told a senior group of MPs.

Asked about the government’s response to the tariffs, the prime minister told the liaison committee: “Obviously we have to keep our options on the table and do the preparatory work for retaliation if necessary. But I think that trying to negotiate an arrangement which mitigates the tariffs is better.”

He insisted Trump’s tariffs were not a “temporary passing phase” but part of a “changing world order”.

US stocks rose sharply at the opening bell on Wall Street on Tuesday, arresting a three-day slide in markets.

During opening exchanges, Wall Street’s S&P 500 index shot up by 3.08 per cent, or 155.98 points, to 5,218.21; while the Dow Jones industrial average climbed by 2.81 per cent, or 1,066.72. The tech-heavy Nasdaq Composite index leapt by 3.15 per cent, or 491.43 points, to 16,094.70.

The rises come after two days of heavy selling which pushed the S&P 500 down by more than 10 per cent, among the largest falls since the Second World War.

Following the imposition of punitive tariffs on the US’s key trading partners by President Trump, investment banks including Goldman Sachs and JP Morgan warned that the US and global economy would tip into recession.

In a post on Truth Social, Trump has said China will strike a deal with the US over proposed tariffs.

He said: “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!”

SAUL LOEB/GETTY IMAGES

Trump said he had also spoken to South Korea over tariffs and added: “We talked about their tremendous and unsustainable surplus, tariffs, shipbuilding, large scale purchase of US LNG, their joint venture in an Alaska pipeline, and payment for the big time military protection we provide to South Korea.”

By David Wighton

The swingeing global tariffs unveiled by President Trump are a huge cloud looming over the UK economy. But determined optimists say they can see a silver lining: the tariffs could encourage companies to shift manufacturing back to the UK.

Even before Trump’s announcement, British companies were planning to invest more in moving supply chains and manufacturing closer to home, according to a survey by the consultants Capgemini. The massive US tariffs on Asian countries will make it even more attractive to repatriate operations, say some excited pundits.

• Read in full: Trump’s tariffs may tempt companies to shift manufacturing back to Britain

European stock markets extended their recovery in afternoon trading on Tuesday, providing a reprieve from days of sharp falls that wiped trillions of dollars off the value of the world’s largest listed companies.

The FTSE 100 was up by 2.55 per cent, or 196.35 points, to 7,898.42. The domestically-focused FTSE 250 index rose by 3.22 per cent, or 571.46 points, to 18,336.65.

On the Continent, Germany’s Dax index gained 2.33 per cent, or 460.63 points, to trade at 20,250.25. France’s Cac 40 index climbed by 2.18 per cent, or 151.24 points, to 7,078.36 and Italy’s FTSE MIB index rose by 2.81 per cent, or 921.81 points, to 33,775.79.

Gains on European stock markets came after a solid overnight trading session in Asia which saw Japan’s Nikkei index climb by more than 6 per cent after Japan and America agreed to hold trade talks.

Since Trump announced his tariff tirade last week, global stock markets have been on a downward trend, with Wall Street’s S&P 500 posting its fourth largest two-day loss since the Second World War. Stock futures suggest that US stocks will open higher when trading starts on Wall Street at 2.30pm UK time.

By Alistair Osborne

Who knew Agent Orange could be so destructive? Not the billionaires who backed Donald Trump — a crew spanning Blackstone’s Steve Schwarzman, the Winklevoss crypto twins and, of course, Elon Musk.

Finally, another of his biggest cheerleaders has woken up to the risks of putting untrammelled power into the hands of a US president with wacko economic theories from a bygone age. Who he? The Pershing Square boss Bill Ackman. Rewind to July and there he was bigly endorsing Trump: “I assure you that I have made this decision, carefully, rationally, and by relying on as much empirical data as possible”.

Not carefully enough. Ackman has become the first to publicly break ranks over the tariff mayhem, telling his 1.7 million followers on Musk’s X platform that “we are in the process of destroying confidence in our country as a trading partner, as a place to do business, and as a market to invest capital”.

• Read in full: Wall Street’s faith in the US president is faltering

The stock market rout triggered by President Trump’s “liberation day” tariffs ranks among the largest since the Great Depression nearly a century ago.

In just a matter of days, trillions of dollars have been wiped off of the value of global equities after Trump upended the global economy with import levies that take the US effective tariff rate to its highest level in over a century.

In response, JP Morgan and Goldman Sachs, the US investment banks, said there was very much a live risk of a US and global recession. Analysts have downgraded growth expectations for the UK, Europe and China.

• Read in full: Trump’s tariffs has wiped trillions of dollars off global equities

Mel Stride, the shadow chancellor, vowed to “assist the government in getting those tariffs down”.

He told the Commons: “Free trade has been the bedrock of prosperity for our country and many countries around the world for decades. It has raised billions out of poverty. Tariffs are the enemy of free trade, and we on this side of the House will do whatever we can to assist the government in getting those tariffs down.

“Having said that, of course, we will never cease becoming an effective opposition, vigorously holding them to account not least on the disastrous decisions that they have taken already in respect of our economy, but we will be responsible when it comes to these matters, particularly where market sensitivities are engaged.”

Rachel Reeves, the chancellor, said that the impact of tariffs could be “profound” as she said a trade war was in “nobody’s interests”.

The government would remain “pragmatic” as it looks into a deal with the United States, she added.

Reeves told MPs: “This government is clear-eyed that our response to global change cannot be to watch and wait, but instead to act decisively, to take the right decisions that are in our national interest.

“A trade war is in nobody’s interests, it is why we must remain pragmatic, cool-headed and pursue the best deal with the United States that is in our national interest. This remains our priority, and that was part of the discussion that I had with US treasury secretary Scott Bessent last week, but we have been clear, nothing is off the table.”

Ursula von der Leyen has urged China to avoid escalating the trade war with the US and find a negotiated solution.

In a phone call to Li Qiang, the Chinese premier, on Tuesday, the head of the European Commission stressed the need for stability and predictability in the global economy, according to a readout from Brussels.

Ursula von der Leyen with Li Qiang last year

RAO AIMIN/XINHUA/ALAMY

It said: “The president called for a negotiated resolution to the current situation, emphasising the need to avoid further escalation.”

Both sides should support a trading system which is “free, fair and founded on a level playing field”, von der Leyen was said to have emphasised.

China’s currency has weakened to a 20-month low after Beijing said it would “fight to the end” against President Trump’s threatened tariffs.

The renminbi, which trades within a fixed range set by the country’s central bank, fell to a reference of 7.2038 against the dollar — the lowest since September 2023. The currency trades in a 2 per cent band.

The incremental devaluation is the latest salvo in an escalating US-China trade war. The US president has said China will be hit with an additional 50 per cent tariff if Beijing retaliates with its own import taxes on US goods. The White House last week said it would hit all Chinese goods with a 34 per cent tariff on top of an existing 25 per cent blanket levy.

• Read in full: Beijing lowers the cost of its goods and services

Europe should work towards zero tariffs between the EU and the United States in negotiations, Elina Valtonen, the Finnish foreign minister, has said.

KIMMO BRANDT/EPA

“Engaging in a global trade war is the surest way to achieve a global recession,” Valtonen told a joint press conference with her Swedish counterpart in Stockholm. “But of course the European Union now has to react to what the US has put forward.”

On Monday, Trump said Brussels would have to commit itself to buying $350 billion of American energy to get a reprieve from his tariffs, after the EU offered a proposal to drop the bloc’s tariffs to zero on cars and industrial goods imported from the US.

Asked if that would be enough to change his tariffs, Trump said: “No, it’s not.”

Stocks in Asia rose on Tuesday, although they only recovered a fraction of the catastrophic losses from the day before.

In mainland China, state-run funds led by Huijin — the biggest state-owned brokerage — were ordered to step in to stabilise the markets.

The Shanghai composite index closed up 1.6 per cent, after falling 7 per cent on Monday.

In Hong Kong, the Hang Seng rose 1.5 per cent on Tuesday, after crashing 13.2 per cent the previous day. Nikkei Asia said it had counted more than a dozen announcements by Hong Kong-listed firms of share buybacks and other “positive messages”. Some of the most active players were mainland Chinese companies with Hong Kong listings.

In Japan, the Nikkei 225 rose 6 per cent, after Shigeru Ishiba, the prime minister, said he had spoken by phone to Trump, who had agreed to open new trade talks. Japan was hit by additional 24 per cent tariffs last week.

By Richard Spencer, China Correspondent

China’s hardline response to President Trump’s latest tariffs pronouncement is a gamble, as is any square-up between two prize fighters in the ring. However, President Xi looks at the chaos on the American stock markets and thinks that he has a plan, and Trump doesn’t.

The trouble with strongman populism is that it works both ways. Trump has repeatedly expressed a preference for leaders like President Putin, President Erdogan and Xi, who exude the same sort of authority that he thinks of himself as projecting.

Xi was a “friend” and “brilliant”, he has said in the past. Compare that to the contempt he feels for wishy-washy, consensus-driven European leaders.

President Trump with President Xi at the G20 leaders summit in Osaka in 2019

KEVIN LAMARQUE/REUTERS

That is all very well until your country’s interests, as you see them, clash with theirs, as they see them.

Xi came to office promising to no longer bow before threats from the West, as he believed his predecessors had done — to no longer hide China’s light under a bushel. He told Chinese people that it was time for them to stand up. So he could hardly not retaliate.

Xi has not made many friends among rival economic powers with his own strongman attitudes in his decade in office — whether Europe, Canada, or neighbours in southeast Asia. What is striking is that now they are on China’s side.

The EU’s trade deal with the Mercosur bloc of six South American countries is “no remedy” for President Trump’s tariffs, Annie Genevard, the French agriculture minister, said.

“Mercosur was bad yesterday and in my opinion it still is,” she told French radio.

If ratified, the agreement would allow the EU to export cars, machinery and pharmaceuticals more easily to the Mercosur countries. In return, they would be able to sell more meat and agricultural produce to the EU. France has been fighting to prevent the deal from being ratified, over fears that a glut of cheap imported beef and poultry would undercut its farmers.

In December, Ursula von der Leyen, the European Commission president, overrode French objections and signed the agreement, which was backed by her native Germany. However, Genevard said it would be a “good policy” for the EU to look beyond the United States and seek other trade deals.

SAUL LOEB/AFP/GETTY IMAGES

Two of America’s best-known financiers have called on Trump to soften his position on tariffs.

Jamie Dimon, the chief executive of the biggest US bank, JP Morgan Chase, issued a warning in his annual letter to shareholders, saying that the president’s policies would push up inflation and slow growth.

Bill Ackman, one of Trump’s biggest cheerleaders on Wall Street, called for a 90-day pause on the trade war and warned that the world faced “an economic nuclear winter” unless the president reversed course.

• Read in full: ‘Economic nuclear winter’ unless Trump changes course

The pound continued its ascent against the dollar on Tuesday as analysts cautioned against concluding that the market turmoil of recent days had subsided.

Sterling gained 0.2 per cent against the dollar to trade at $1.27 and the euro was up by a similar amount against the dollar to $1.09. The pound is up by nearly 2 per cent against the dollar since the start of the year.

In economic theory, tariffs are thought to strengthen a country’s currency by keeping interest rates high and reducing demand for goods denominated in that currency. However, the dollar has fallen sharply since Trump re-entered the White House in January, and it is down by nearly 5 per cent against comparable currencies in 2025.

The dollar’s decline came as the sell-off in global stock markets lost momentum on Tuesday. Analysts at ING, the Dutch bank, said: “Trump has given little signs of scaling back protectionism, and there is a risk that markets are again erring on the side of optimism.”

Elon Musk urged President Trump to change course as his tariff policy sent markets into shock, it has been reported.

The Tesla billionaire made unsuccessful direct appeals to Trump after he imposed his “liberation day” levies, the Washington Post reported.

ALEX BRANDON/AP

Musk called for zero tariffs between the US and Europe during a virtual appearance at a meeting of Italy’s right-wing Lega party at the weekend.

It was reported last week that Musk would no longer serve in the White House.

Pedro Sánchez, the prime minister of Spain, will visit China this week as countries in the European Union rethink their global trading relationships in response to the US tariffs.

Sánchez will arrive in Beijing on Friday and is scheduled to meet President Xi and Chinese investors.

Before the visit to China, Sánchez will travel to Vietnam on Wednesday, where he will meet political and business leaders.

Sam Nunberg, a former Trump adviser, has said he believes tariffs are here to stay but that the high rates are unlikely to remain.

“I believe that the president has put out these humongous tariff rates as a starting negotiating point,” he told BBC Radio 4’s Today programme.

“This is a starting point, this is not where this is going to end, but the president is not going to completely reverse course. There’s going to be a new tariff regime within the US and on the international trade market — the issue is what that looks like.”

By David Charter

President Trump has hastened the international showdown that could define his presidency — conflict with China.

A refusal to negotiate further with China suggests a president dug firmly into his tariff trench and willing to take the highest level of risk with the economy to stay there.

President Xi with President Trump in 2017

JONATHAN ERNST/REUTERS

Whenever Trump has found himself in a battle throughout his business and political career, he has always reached for the biggest weapons he could lay his hands on. As president of the United States, in a non-military conflict, he can wield the biggest economy and the strongest currency.

• Read in full: Trump threatens to put an extra 50 per cent tariff on imports unless Beijing backs down

Wes Streeting has insisted patient data was not part of US trade negotiations.

“The NHS is not for sale and our patients’ data is not for sale,” the health secretary told BBC Breakfast.

Tariffs could impact the supply of medicines, Wes Streeting, the health secretary, has said.

CAMERON SMITH/GETTY IMAGES

“Until this trade war erupted, we’d already had issues with medicines production and supply internationally. We are constantly watching and acting on this situation to try and get medicines into the country to make sure we’ve got availability, to show some flexibility in terms of how medicines are dispensed, to deal with shortages.

“But whether it’s medicines, whether it’s parts for manufacturing, whether it’s the ability of businesses in this country to turn a profit, this is an extremely turbulent situation.”

The FTSE 100 has risen in the first few minutes of trading on Tuesday morning, as a sense of optimism returned to the financial markets after the turmoil of the last few days.

In opening exchanges in London, the FTSE 100 climbed by 1.24 per cent, or 95.23 points, to 7,797.30; while the domestically-focused FTSE 250 index jumped by 1.16 per cent, or 206.53 points, to 17,971.72.

The pan-European Stoxx 600 index rose by 1.26 per cent, or 5.95 points, to 479.97. France’s Cac 40 index increased by 1.34 per cent, or 92.60 points, to 7,019.73 and Italy’s FTSE MIB index gained 1.48 per cent, or 485.26 points, to trade at 33,331.12.

Overnight trading in Asia saw shares recover ground. Japan’s Nikkei index rose sharply by 6.03 per cent and China’s CSI 300 index climbed by 1.71 per cent.

The Korea Composite Stock Price Index on Tuesday morning

KIM SOO-HYEON/REUTERS

Analysts at Deutsche Bank, the German investment bank, said: “The market sell-off has shown some initial signs of stabilising after the incredible rout over recent days.”

Matt Britzman, a senior equity analyst at Hargreaves Lansdown, said: “This should hardly be seen as the end of the trouble, especially with President Trump showing no signs of easing his stance on perceived trade imbalances, having doubled down on China.”

What can Sir Keir Starmer do? In the face of President Trump’s sweeping global tariffs, the prime minister’s options are relatively limited.

The overriding priority remains securing a trade deal, which the prime minister hopes to get over the line by the end of the month. But in the meantime businesses in affected sectors are calling for more support. So what are his options, and how viable are they really?

• Read in full: PM has limited options at his disposal as he considers the fallout

The head of the world’s biggest asset manager has warned that the US economy is “weakening as we speak”.

Larry Fink, the CEO of BlackRock, told chief executives and investors in New York that “a real downturn” was developing as a result of President Trump’s tariffs.

“When you see a 20 per cent market decline in three days obviously it has significant impacts and the ripple effects of the potential of tariffs is going to be longstanding,” said Fink.

Shares in BlackRock, which has assets under management of more than $10 trillion, have fallen 25 per cent from their all-time high in January after Trump’s “liberation day” speech.

Dire approval ratings for most of the past four years were no impediment to Trump getting re-elected: he won the popular vote in November despite most Americans having an unfavourable view of him.

However, since the election, Americans have had a slightly more positive view of Trump. Most terms begin with a “honeymoon” period, when voters are happy with the president’s performance — time will tell how long Trump’s will last.

• Read in full: Trump’s approval rating: tracking the opinion polls

Trump rejected an offer from the EU of “zero for zero” tariffs on industrial goods.

The US president claimed that the bloc had been “formed to damage America”. He attacked regulations within EU markets and said they were “just designed for one reason — that you can’t sell your product”.

John Lee, the chief executive of Hong Kong, called Trump’s tariffs “reckless” and said that the US’s “ruthless behaviour” undermined the international trade order.

LI ZHIHUA/CHINA NEWS SERVICE/VCG/GETTY IMAGES

Lee’s comments came after Hong Kong’s stock market saw its worst day in nearly three decades.

On Monday, a 13.2 per cent fall for the benchmark Hang Seng Index wiped trillions off company valuations. Lee said of the US: “Its ruthless behaviour damages global and multilateral trade.”

He added: “[The] reckless imposition of tariffs affects many countries and regions around the world, with huge tax rate increases and covering a wide range of goods, disrupting the world economic and trade order, bringing great risks and uncertainties to the world.”

President Trump insisted that there would be no pause in his tariffs as he demanded China back down.

Trump refused to negotiate with Beijing, after it announced 34 per cent retaliatory tariffs on Monday.

In response, the president threatened a further tariff of 50 per cent — which would take US costs on Chinese imports to 104 per cent.

“We can’t be the stupid people anymore. We’ve been ripped off and taken advantage of by many countries over the years, and can’t do it anymore. Just can’t do it anymore,” Trump said, speaking alongside Binyamin Netanyahu, the Israeli prime minister as he visited the White House.

Binyamin Netayahu with President Trump in the Oval Office

KEVIN MOHATT/REUTERS

China has vowed to “fight to the end” against fresh tariffs of 50 per cent threatened by President Trump, further exacerbating a trade war that has already wiped trillions off global markets.

Beijing announced that its own 34 per cent duties on US goods would come into effect on Thursday.

“If the US insists on going its own way, China will fight it to the end,” a spokesperson for Beijing’s commerce ministry said on Tuesday, adding that Trump’s threat “once again exposes the US’s blackmailing nature”.

“If the US escalates its tariff measures, China will resolutely take countermeasures to safeguard its own rights and interests,” the ministry said.

The ministry reiterated that it sought a “dialogue” with the US and said that there were “no winners in a trade war” between the world’s two biggest economies. Despite a dramatic market sell-off, Trump has ruled out any pause in his aggressive trade policy to head off an international recession.

• Read in full: I will not pause tariffs — we can’t be stupid any more, says Trump