Tariffs live: China hits back at US as stand off against Trump continues amid global market rebound

The UK’s FTSE 100 has soared by more than 6 per cent after stock markets opened in London.

The index was gaining about 475 points in early trading on Thursday, following a significant rally for markets in the US and Asia.

The sharp gains come after US President Donald Trump announced he would be pausing tariffs on most countries, excluding China, for 90 days.

Europe and the US could reach a “win-win” trade deal which could be beneficial to both parties, Greek Prime Minister Kyriakos Mitsotakis said in an interview published late on Wednesday.

“On the European front there is a possibility of finding a win-win solution when it comes to trade, a solution which will be mutually beneficial,” Mitsotakis told US news network Breitbart from his office in Athens.

The European Union on Wednesday agreed to launch its first countermeasures against US tariffs next week. But European Commission President Ursula von der Leyen on Thursday welcomed Trump’s announcement of the pause.

Mitsotakis said that there was “still room for negotiations” with the US before Europe considered any major reciprocal response beyond what had been announced on Wednesday.

“Europe and the European market is very important for the US and US is important for Europe and we need to work out a solution.”

US President Donald Trump’s dramatic decision to pause hefty tariffs on dozens of countries was an important step towards stabilising the global economy, European Commission President Ursula von der Leyen has said.

Ms Von der Leyen, who heads the EU’s executive arm, said on Thursday that the bloc remained committed to constructive negotiations with the US, with the goal of achieving “frictionless and mutually beneficial trade”.

“Clear, predictable conditions are essential for trade and supply chains to function,” she said in a statement on X.

Tariffs were taxes that only hurt businesses and consumers, she said, adding: “That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”

She added: “At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87 per cent of global trade and share our commitment to a free and open exchange of goods, services, and ideas.”

She also said that the Europe was stepping up work to lift barriers in its single market.

“This crisis has made one thing clear: in times of uncertainty, the single market is our anchor of stability and resilience,” she said.

The FTSE 100 has opened up 1.12 per cent today.

Global markets are rallying after Donald Trump’s shocking tariffs reversal.

The Independent’s Business and money editor Karl Matchett writes:

Futures are showing a sharp rise for the FTSE 100 in excess of five per cent when it opens – not quite the rise that Japan or the US’ main indices showed overnight, but then, the FTSE also didn’t collapse in the same way either.

It’s another example of the flip-flopping in the markets that a single word – or social media post – from the president can cause.

Look beyond the stock markets and particularly at smaller businesses in the US and you wonder how on earth they are supposed to keep up with such rapid changes; for today at least, though, it appears we’ll get to see plenty of green all around.

US President Donald Trump’s stunning decision to pause the hefty duties he had just imposed on dozens of countries brought relief for battered global stock markets on Thursday.

US stock indexes shot higher on the news, with the benchmark S&P 500 index closing 9.5 per cent higher, and the relief continued into Asian trading on Thursday with Japan’s Nikkei index surging more than 8 per cent.

Mr Trump’s turnabout on Wednesday, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.

That pushed European futures up sharply in the Asian session, with EUROSTOXX 50 futures and DAX futures climbing nearly 8 per cent each, while FTSE futures gained 5.4 per cent.

Donald Trump’s tariff pause leaves “China alone in the crosshairs,” facing 125 per cent tariffs while others get a temporary reprieve, said Daniel Russel, the vice president of Asia Society Media Relations.

Mr Russel said China will let “Trump overplay his hand” and is unlikely to change “its strategy: stand firm and absorb pressure”.

“Beijing believes Trump sees concessions as a weakness, so giving ground only invites more pressure.”

“Other countries will welcome the 90-day stay of execution – if it lasts – but the whiplash from constant zig-zags creates more of the uncertainty that businesses and governments hate.”

The administration’s blunt-force tactics have rattled allies, who see the sudden reversal as damage control following the market meltdown, rather than a pivot to respectful, balanced negotiations.”

China has hit back against the US in the escalating trade war between the world’s two largest economies, bringing into force 84 per cent tariffs on all US imports from today.

That came just hours after Donald Trump paused almost all his “reciprocal” tariffs programme but raised duties on Chinese imports to 125 per cent, calling it a punishment for Beijing’s retaliation.

The US president earlier said a resolution with China was possible, while his officials said they will prioritise talks with other countries.

“China wants to make a deal,” Mr Trump said, adding: “They just don’t know how quite to go about it.”

Treasury secretary Scott Bessent said that the negotiations between the US and individual countries would be “bespoke”, meaning that the next 90 days would involve talks on a flurry of potential deals.

Markets bounced back this morning after US president Donald Trump yesterday announced a 90-day pause on his sweeping “reciprocal” tariffs.

Mr Bessent, a former hedge fund manager, told reporters that the pause was because of other countries seeking talks rather than brutal selloffs in the financial markets.

“The only certainty we can provide is that the US is going to negotiate in good faith, and we assume that our allies will too,” Mr Bessent said.

The treasury secretary said he and Mr Trump “had a long talk on Sunday, and this was his strategy all along” and that the president had “goaded China into a bad position.”

Chinese commerce minister Wang Wentao held meetings wth representatives of the EU and the chair of Asean nations over Donald Trump’s “reciprocal” tariffs.

The trio shared “a candid exchange of views on strengthening bilateral economic and trade cooperation and responding to the so-called reciprocal tariffs imposed by the US”, China said in a statement today.

China and the EU this week agree to promptly initiate consultations to thoroughly discuss market access-related issues, create a more favorable business environment for enterprises, and immediately commence negotiations on price commitments for EVs, as well as explore investment cooperation in the China-EU automotive industry, the Chinese ministry said.