Latest impact on UK markets revealed amid fears Trump tariffs will spark all-out trade war – live updates

Sir Keir Starmer will face MPs this afternoon as market turbulence triggered by Donald Trump’s tariffs showed signs of easing.

The Prime Minister will appear before the Liaison Committee of senior MPs on the last day the Commons sits before it heads into the Easter break.

He could face questions over the UK’s response to the global economic shock caused by Trump’s tariffs.

The UK has not retaliated so far, but has drawn up a 417-page list of possible products which could face tariffs if Starmer decides to put import taxes on US goods.

The Government is pushing for a deal with the White House in the hope of easing the 10% tariff on US imports of British goods, along with a 25% tariff on cars and separate import taxes for steel and aluminium.

Taiwan can have negotiations with the United States at any time on the tariffs issue, Foreign Minister Lin Chia-lung said today, a day after the island’s stock market plummeted on trade fears.

Major semiconductor producer Taiwan, hit with a 32% duty, was singled out by the U.S. administration as among the U.S. trading partners with one of the highest trade surpluses with the country.

Taiwan President Lai Ching-te on Sunday proposed a zero-tariffs regime with the United States, and to invest more in the country and remove trade barriers.

Speaking to reporters on the sidelines of parliament, Lin said that Taiwan was ready to talk about a variety of issues with the United States, including investment in and purchases from the country and non-tariff barriers.

“As long as there is a confirmed time and method for negotiations, they can be discussed at any time with the United States,” he added.

On Monday, White House economic adviser Kevin Hassett said Taiwan had reached out to discuss the tariffs.

Taiwan’s benchmark stock index, which logged its worst fall ever on Monday, down almost 10%, fell another 4% on Tuesday and hit its lowest level in 14 months.

Japanese stock market Nikkei 225 rose by 6% today amid speculation that the US is prepared to open trade negotiations with Japan.

The Nikkei is recovering from a one-and-a-half year low hit in the previous session, as investors scooped up stocks, encouraged by signs of a recovery on Wall Street.

The Nikkei index climbed 6.03% to 33,012.58, marking its sharpest daily percentage gain since August 6.

The broader Topix also recorded a more than 6% gain, closing at 2,432.02.

‘Investors bought back stocks as they thought the shares were oversold. They saw signs of a market recovery as U.S. stock futures rose in Japan trade,’ said Takamasa Ikeda, senior portfolio manager, GCI Asset Management.

A new poll suggests voters are against Sir Keir Starmer’s plan to fight the 10 per cent tariff levied on UK exports to the US.

More than half of those polled by More in Common back retaliatory tariffs on US goods entering Britain.

It comes as the government insists the UK will keep a ‘cool head’ with no ‘knee-jerk response’ while pointing out ‘nothing is off the table’.

UK businesses have just over three weeks to give their views on possible retaliatory action before a consultation closes on May 1.

The Health Secretary also insisted the NHS is not for any sale in any possible UK-US trade deal.

The Prime Minister said intense discussions had taken place between the two countries amid hopes an an agreement could soften the blow caused by tariff increases.

Speaking to BBC Breakfast, Mr Streeting said any sale of patient data was off the table but anyone who wants to use it for research purposes should pay for access.

The NHS is not for sale and our patients’ data is not for sale.

At the heart of that health beta research service are the values and the principles that underpin our National Health Service, which is our data should be… publicly owned, it belongs to all of us. That data should only be shared for research purposes with our consent.

US tariffs provide ‘another layer of challenge’ for ensuring the supply of medicines, the Health Secretary warned this morning.

Wes Streeting told Sky News:

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 steps the US has taken are ‘unprecedented in terms of global trade’, he said.

Here’s footage of Keir Starmer speaking yesterday as the Prime Minister called for calm and insisted the UK would remain ‘cool headed’ in its response to Donald Trump’s tariffs.

Global stocks rallied on Tuesday morning after another tariff-induced slump in the previous session, as cautious investors sought evidence the US may be willing to negotiate.

Optimism is being driven by news US Treasury Secretary Scott Bessent will lead trade negotiations with Tokyo, helping Japan’s Nikkei index to outperform peers in early trading.

But market sentiment remains frail, with the so-called ‘fear index’ – the Vix – spiking over the 60 mark overnight for only the second time since the pandemic.

Chinese official haves responded to additional 50 per cent levies announced last night by warning the world’s second largest economy would ‘fight to the end’ if the US insists on waging a trade and tariff war.

Keir Starmer spoke about the impact of US tariffs with his Singaporean counterpart in a phone call on Monday.

Giving a readout of the Prime Minister’s call with Lawrence Wong, a Downing Street spokesperson said:

The Prime Minister spoke to the Prime Minister of Singapore Lawrence Wong today. The leaders began by discussing the tariffs announced by the US last week and the impact on the global economy. They both agreed that there can be no winners in a trade war.

Free and open trade is fundamental, and the leaders agreed to strengthen collaboration between the UK and Singapore through bilateral agreements including the UK-Singapore Strategic Partnership, with ASEAN and through trading blocs such as the Comprehensive and Progressive Trans-Pacific Partnership.

The leaders are said to have committed to ‘further collaboration’ on technology, security and defence in the 60th year of bilateral relations between the UK and Singapore.

London’s FTSE 100 rose slightly today

European stock markets have slightly rebounded at the start of trading today.

It comes after similar recoveries for Asian equities that followed huge losses triggered by US President Donald Trump’s tariffs.

London’s benchmark FTSE 100 index won 1.3 percent, the Paris CAC 40 advanced 1.4 percent and Frankfurt’s DAX won 0.9 percent.

However, analysts have warned there could be further turmoil to come amid a looming trade war between China and the US.

Matt Britzman, 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.

Donald Trump threatened to impose an additional 50% tariff on Chinese goods from Wednesday unless China withdrew the 34% retaliatory tariff announced by Beijing last week.

The US President had already imposed a 20% tariff on China before it was increased by a further 34% on his so-called Liberation Day last Wednesday – meaning the total tariff could reach 104%.

But China’s Commerce Ministry said it would respond with extra “countermeasures” targeting American goods if Trump followed through on his threat.

Accusing the Trump administration of blackmail, it said in a written statement that “if the US insists on this way, China will fight it to the end’.

Some stock markets across Asia and the Pacific made gains this morning when trading opened following a dramatic slump yesterday.

However, they were still down in mainland China, Taiwan, and Singapore.

Let’s take a look at how Asia-Pacific major stock markets opened this morning:

• Shanghai Composite (China) -0.2%
• Nikkei 225 (Japan) +6.6%
• Hang Seng (Hong Kong) +1.7%
• Kospi (South Korea) +1.5%
• ASX 200 (Australia) +1.5%
• STI (Singapore) -2.2%
• TWI (Taiwan) -3.8%

Good morning and welcome to MailOnline’s live coverage as Donald Trump’s tariff continue to cause economic turmoil across the world.

London’s FTSE 100 has risen in the first few minutes of trading on Tuesday, as a sense of optimism returned to the financial markets after several days of heavy losses.

The index, which tracks the UK’s top 100 listed companies, was up more than 1% shortly after markets opened on Tuesday.

All other indexes on the London Stock Exchange were also in the green.

It follows a more positive session for Asian markets, with some indexes making gains after suffering from steep falls in previous days.

Stick with us as we bring you the latest updates throughout the day