US stocks make historic gains after Trump pauses some tariffs

4 hours ago Share Save Natalie Sherman BBC News Share Save

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US shares have rocketed after US President Donald Trump said he would suspend steep tariffs on goods from most countries, and instead impose a 10% import tax rate. The White House said it was backing off on higher levies for trade partners that had agreed to negotiate, although Trump said he would raise tariffs on goods from China even further, to at least 125% "effective immediately". The S&P 500 soared 9.5% in the biggest one-day rally since 2008, following days of turmoil sparked by the tariffs. Trump's decision came less than 24 hours after the latest round of tariffs had come into force, hitting key trade partners, such as Vietnam, which saw its imports facing a new levy of 46%.

The duties, which the president had announced last week, were higher and more far-reaching than many on Wall Street had anticipated. In the aftermath of the announcement, the S&P plunged more than 10% and many analysts warned of the rising risk of economic recession in the US and globally. By Wednesday, the fears had hit the bond market, where investors started dumping US government debt. "Although President Donald Trump was able to resist the stock market sell-off, once the bond market began to weaken too, it was only a matter of time before he folded," said Paul Ashworth, chief North America economist for Capital Economics. He said he expected Trump to return to the plan for a 10% universal tariff that he called for in his presidential campaign last year, though warned that it would take time for for the US and China to work out a deal. "It is difficult to see either side backing down in the next few days," he said. "But we suspect that talks will eventually happen, although a full rollback of all the additional tariffs applied since Inauguration Day appear unlikely." The Dow ended the day up more than 7.8% and the Nasdaq skyrocketed more than 12%. Live updates Companies such as Nike, which makes roughly half its footwear in Vietnam, jumped 11%, while Apple soared roughly 15%. Despite the gains on Wednesday, the leading indexes in the US remained lower than they were before Trump's announcement, with the S&P 500 off about 3% and down more than 8% for the year.

The levies on goods from China, America's third largest supplier of imports, remain an economic challenge. The country sent more than $400bn in goods to the US last year and was the source of an estimated 60% of footwear imports and roughly 36% of clothing imports in January, according to the American Apparel and Footwear Association. Before Trump's announcement, the National Retail Federation had warned that shipments handled by US ports in May were likely to be 20% lower than a year earlier due to the tariffs. In appearances after his decision on Wednesday, Trump said that he hoped to strike a deal with China, and was also considering granting exemptions to tariffs for individual companies, a shift from earlier comments. "I saw last night where people were getting a little queasy," he said, acknowledging the concerns, though he has signalled he remains committed to duties on key strategic sectors, such as cars, steel and aluminium, and is eyeing other industries such as pharmaceuticals and lumber.

But Trump also raises tariffs on goods from China to at least 125% "effective immediately".

Stocks soar as Trump pauses some tariffs for talks

How exposed is the UK to Trump's tariff chaos?

3 hours ago Share Save Dharshini David Deputy economics editor Share Save

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Warnings of a global recession have been intensifying as the trade war heats up. As of Wednesday night, the main animus seems to be between the US and China who are flinging ever-increasing tariffs at each other. For most other nations, Donald Trump has paused implementing higher taxes on US imports for 90 days. It means that those countries will now face a lower levy of 10% - the same level as Trump as imposed on the UK when he made his initial announcement last week. The UK appeared to have come off lightly compared to other economies. But, British exporters still face an extra charge on goods sold into the US and there are many other ways the UK will be affected, from growth to inflation. The exact impact remains very uncertain. But some of the emerging fallout may have an upside - and here's why.

Business

Those most directly exposed in the UK to this trade war are British businesses - from carmakers to food producers - selling goods into the US. As American importers buying their products pay 10% more, they face a dilemma of whether to squeeze profits, share the pain across the supply chain or hope customers will be prepared to pay higher prices. They already risk a dent to their sales from tariffs, threatening jobs and investment plans. Other companies too could be squeezed by more competition, if cheap imports from other nations are diverted to the UK - China makes a third of global goods. And the complexities of global supply chains means UK business will notice the impact of tariffs in other nations.

Growth

The blow to growth via trade will likely be less marked in the UK than elsewhere, in part because of what Britain sells to America. Two-thirds of British exports to the UK are services - the likes of banking, insurance and advertising - which aren't subject to tariffs. The UK's success in this area makes it a particular area of strength in its trade portfolio. But that strength can also be a weakness. Some services exports are linked to goods; think after-sales services or marketing. The demand for those could be affected by tariffs in the US. Sales of services exports could more broadly be impacted elsewhere if demand from other countries suffers. Some in the advertising industry are already fretting because spending on their services are often to first to suffer when there are budget cutbacks. And that trade success could be a vulnerability. The Bank of England notes that the size of the UK's export sector compared to the economy, and its financial sector, means it may be susceptible to risks to financial stability from weaker global growth. It's for all these reasons that Chancellor Rachel Reeves is warning that growth in the UK will be hit, even if we're now on a level playing field with other countries in terms of the 10% tariff. That's worrying, not just for households and businesses, but for the chancellor's own sums - weaker growth puts more of a strain on the public finances. That's why there's been speculation that we may see more tax rises come the Autumn Budget, if she's to stick to her fiscal rules.

ISAs and pensions

Compounding that dilemma - potentially - are movements in the bond markets. Those are usually seen as safe investments in times of strife but there has been signs of heavy-selling, which could lead to higher borrowing costs for governments. And the wild swings in stock markets around the world, egged on by the heightened risk of global recession, have not been good news for investors in the UK. When share prices drop, they reduce the value of products such as ISAs and pension funds. But as seasoned analysts caution that those sort of funds are long-term ones. Swings in the value of investments tend to get smoothed out over time - and most people aren't drawing from such funds day-to-day. On the whole, households here are less exposed to the stock market directly than those in America are.

Interest rates

The exact impact remains uncertain - but some of the emerging fallout may have an upside - here's why.

How exposed is the UK to Trump's tariff chaos?

The plans to put data centres in orbit and on the Moon

3 hours ago Share Save Emma Woollacott Technology reporter Share Save

Intuitive Machines Data centre firm Lonestar recently sent its test equipment to the Moon on this lunar lander

It sounds like something from a science fiction movie, but Stephen Eisele is confident that one day his company will open a data centre on the Moon. "The way we see it is that by putting the data centre in space, you're really offering unparalleled security," says the president of Lonestar Data Holdings. Last month, the Florida-based firm claimed to have successfully tested a tiny data centre the size of a hardback book that hitched a ride to the Moon on the Athena Lunar Lander from US space exploration firm Intuitive Machines. This, in turn, had been launched by a rocket from Elon Musk's SpaceX. Data centres are the vast warehouses that house stacks of computers that store and process data used by websites, companies and governments. Lonestar says that putting them on the Moon will offer customers secure, reliable data processing, while taking advantage of unlimited solar energy to power them.

And while space-based data centres may sound far-fetched, it's an idea that's really starting to take off. Part of the reason is rocketing demand and the difficulty of finding suitable sites on Earth. The ever-expanding use of artificial intelligence (AI) computing has seen a massive increase in the amount of data that needs to be stored and processed around the world. As a result, the need for data centres has shot up too, with annual demand set to rise between 19% and 22% by 2030, according to global management consultants McKinsey. New facilities are springing up all the time - but it's getting hard to find places to put them. Data centres are large and sprawling, and use enormous amounts of power and water for cooling. And increasingly local people don't want them built nearby.

Hugh Kenny Data centres require vast amounts of electricity

Putting data centres in space – either in orbit around Earth, or on the Moon - the theory goes, means they can't do quite so much harm. There's more-or-less unlimited energy available from the sun, for example, and no neighbours to complain about the environmental impacts. Not only that, space-based data centres could specialise in services for spacecraft and other space facilities, with space-to-space data transfers quicker than from the ground. Last summer, a European Commission-funded feasibility study into orbiting data centres published its results. The Ascend report by carried out by Thales Alenia Space - a joint venture between French and Italian aerospace groups Thales and Leonardo - published its results. It determined that deploying data centres in space "could transform the European digital landscape", and be "more eco-friendly". Thales Alenia Space envisages building a constellation of 13 satellites measuring a combined 200m-by-80m, and with a total data processing power of around 10 megawatts (MW). That's equivalent to a current medium-sized, ground-based data centre, with some 5,000 servers. Based on technologies that already exist or are under development, the satellites would be assembled in orbit.

Damien Dumestier, Ascend project architect at Thales Alenia Space, says that for space-based data centres to be more environmentally friendly than existing ground-based ones it will be necessary to make the rocket launchers 10 times less emissive over their lifecycles. He says this looks possible. "But in order to cover the new technology's developments and the production capacity ramp-up to benefit from scale, we have to consider larger system capacity, around 200MW, meaning 200 of our envisaged large space infrastructures and 200 launches," he says. "The main question is when an adapted launcher will be ready. Depending on the investment and decisions to be taken, this could be done for 2030 or 2035, meaning commercial viability before 2037."

However, despite this optimism from firms aiming to develop the technology, Dr Domenico Vicinanza, associate professor of intelligent systems and data science at Anglia Ruskin University in the UK, says there are numerous big hurdles before space-based data centres can be a viable proposition. "Even with the contribution and advancements of companies like SpaceX, launching hardware into orbit remains extremely expensive," he says. "Each kilogram sent into space costs thousands of dollars. "Space-based data centres would require not only the data equipment but also the infrastructure to protect, power, and cool them. All of which add up in weight and complexity." Cooling the equipment will be a particular problem, because even though space is cold, conventional cooling systems don't work will without gravity. Meanwhile, space weather can damage electronics, while the ever-increasing quantity of space debris puts the physical hardware at risk. Dr Vicinanza adds: "And fixing problems in orbit is far from straightforward. Even with robotics and automation, there are limits to what can be repaired remotely. "A big hardware failure might necessitate a costly human mission, potentially making downtime stretch for weeks or months."

Starcloud Starcloud proposes a modular system, whereby data centres can be expanded

Proponents say space-based data centres will be more secure, but sceptics say big hurdles remain.

The plans to put data centres into orbit and on the moon

UK mortgage lenders cut rates after Trump tariffs

3 hours ago Share Save Mitchell Labiak Business reporter, BBC News Share Save

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A growing number of UK lenders are cutting mortgage rates as the fallout from US tariffs continues to fuel forecasts of deeper than expected interest rate cuts. Coventry Building Society became the largest mortgage provider to trim its two-year fixed rate mortgage to below 4% on Wednesday, joining a number of lenders who made similar moves. Financial markets and economists are predicting that the Bank of England will reduce borrowing costs by more than expected this year to avoid a downturn. The risk of global economic instability has grown after Donald Trump pressed ahead with trade taxes on US imports from more than 60 countries.

According to the financial data company Moneyfacts, the average two-year fixed mortgage rate ticked down to 5.3%. The average five-year fix edged lower to 5.15% Coventry Building Society is lowering its two-year fixed rate deal to 3.89% to the end of October 2027. Head of mortgage relations at Coventry, Jonathan Stinton, said there is "growing demand for shorter-term flexibility in an uncertain market". However, the product is only for borrowers with a 65% loan-to-value and comes with a £999 fee. Clydesdale Bank and Newcastle Building Society have also cut their rates. But despite the recent falls, many mortgage holders coming off fixed deals signed before interest rates started rising in mid-2021 are likely to face a more expensive loan when they refinance. Around 1.3 million homeowners will see their existing fixed-rate deals end between April and December this year, according to figures from the Financial Conduct Authority.

Lenders lower mortgage costs as experts forecast interest rates will be cut by more than expected.

UK mortgage lenders cut rates after Donald Trump tariffs

Struggling families can apply to £2m fund for help

Several schemes are offering help with cost-of-living, the council said

More than £2m has been made available for families struggling in the cost-of-living crisis.

People struggling to pay for energy and other essentials are being encouraged to check if they are eligible before applying to Herefordshire Council for a share of the fund.

The authority said the government had provided £2.3m. Residents could use the money to get help with paying for energy and water, as well as food, clothing and hygiene products.

It is one of several schemes supporting people through the cost-of-living crisis, the council said, with other schemes available for carers, care leavers, pensioners and others.

Residents can get cash to help with paying for energy, water, food, clothing and hygiene products.

Struggling Herefordshire families can apply to £2m fund for essentials

Talks to save British Steel reach crunch point

54 minutes ago Share Save Jack Fenwick Political reporter Alex Forsyth Political correspondent Share Save

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Talks aimed at saving steel production in Scunthorpe are deadlocked over who will pay for the raw materials needed to keep the blast furnaces going. The materials need to be paid for within the next two days, according to government sources, or production will cease at the British Steel plant within weeks and cannot be restarted. British Steel's Chinese owner Jingye say the furnaces are "no longer financially sustainable" and they are unwilling to purchase new raw materials. Talks are set to resume between British Steel bosses and government officials on Thursday, with unions saying the situation is on a "cliff-edge".

The government has not ruled out nationalising British Steel, which employs 2,700 people, saying all options remain on the table. Ministers are thought to prefer a commercial solution to secure the long-term future of the plant. But due to the urgent need to acquire new raw materials, talks about the longer-term future of steelmaking in Scunthorpe are now largely on hold. The immediate issue is who will pay for a shipment of iron pellets, which have been delivered but are waiting in a dock, and coke, which has been ordered and is en route to the plant. One option being discussed is whether the government can directly buy the materials using taxpayers' money. But ministers have come up against legal barriers that make it tricky to intervene in such circumstances. It is understood that the easiest legal avenue would be to come to a deal with Jingye, whereby they agree to carry on running the plant, as long as the government pays for the raw materials.

When Jingye announced last month that thousands of jobs were at risk, that triggered a consultation period that legally must last a minimum of 45 days. Government representatives are said to be frustrated with Jingye, at what they see as an effective shutting down of British Steel, with the consultation period still ongoing. One source involved in the negotiations, who two weeks ago was optimistic about the future relationship between Jingye and the UK government, said they could no longer foresee long-term Chinese involvement in British steelmaking. If the government can find a way over that more immediate hurdle, then longer-term talks about British steelmaking are expected to be picked back up. One source said the government is now likely to look for an alternative commercial partner, outside of China, to take over the steelmaking operations at Scunthorpe. Alun Davies, national secretary in charge of steel and metals for the Community Union, said the raw materials issue was an "extreme emergency" . "We just need them to be paid for, once that happens then there can be further discussions with the government about how we secure steel making for Scunthorpe," he told the BBC. Emerging from talks, Linda McCulloch from the Unite union said they would like the government to nationalise the site "to keep steelmaking alive in the UK".

One of Scunthorpe's blast furnaces is set to be temporarily shut down next week, in order to buy more time before the raw materials needed to keep the steelworks going run out. The North Lincolnshire town's skyline boasts four blast furnaces, all named after English Queens - Bess, Mary, Anne and Victoria. Bess and Anne are currently the only two steelmaking blast furnaces operational in the UK. Turning off a blast furnace without making it permanently unusable is notoriously difficult. A so-called "Salamander Tap" can be used to temporarily shut down a blast furnace by drilling a hole to remove any remaining hot metal. It is seen as a generally dangerous process, but engineers on site at Scunthorpe are now confident they can carry out the procedure. The "Bess" blast furnace is currently scheduled to be taken temporarily out of action on 14 April. This would leave "Anne" as the only remaining operational blast furnace in the country, but would mean raw material stockpiles last twice as long. Reform UK is calling for British Steel to be nationalised until a buyer can be found. The Green Party also favours nationalisation and a switch to "green" steel production. The Conservatives and Liberal Democrats have said other options should be considered first.

The government has two days to reach a deal with the plant's Chinese owners to keep blast furnaces running.

Talks to save British Steel reach crunch point

Government considers nationalising British Steel

4 hours ago Share Save Chris Mason • @ChrisMasonBBC Political editor Hannah Miller Political correspondent Share Save

Reuters British Steel said its Scunthorpe plants are 'no longer financially sustainable' as fears grow over job losses

The government is considering nationalising British Steel as fears grow among ministers that only days remain to secure raw materials for the company's blast furnaces in Scunthorpe. Chancellor Rachel Reeves has sought to reassure workers at the Lincolnshire plant that the government would consider nationalisation if necessary. Reeves spoke to trade unions over the weekend to explain the government's outlook on the steelworks' future. It is understood she told them she was acutely aware of the steel industry's strategic importance to the UK. US President Donald Trump has levied a 25% tariff on American imports of steel.

British Steel has said its two blast furnaces in Scunthorpe are "no longer financially sustainable" and there are fears that without government support 2,700 jobs could be lost. The firm has been owned by the Chinese company Jingye since 2020. Jingye says it has invested more than £1.2bn into British Steel to maintain operations and claims it suffered financial losses of around £700,000 a day.

Taking questions from MPs on the Commons Liaison Committee on Tuesday, the prime minister reiterated "all options remain on the table" when it comes to potential government support. "I'm absolutely committed to steel production in this country," he said. He declined to provide further details, but added: "I can reassure the committee that we're doing everything we can to ensure there is a bright future for Scunthorpe." The government has offered £500m of support to partly fund a switch from blast furnaces to what are known as electric arc furnaces. But that has been rejected by the company. Senior figures in Whitehall are concerned negotiations are reaching a crunch point this week, when an order for fresh raw materials needs to be placed in order to keep the blast furnaces going. If they are turned off, it would make the site's existing vulnerability even more perilous.

The political backdrop to the arguments about the plant's future is the race to be Lincolnshire's first directly elected mayor. The election is on 1 May. The Reform UK leader Nigel Farage and his deputy Richard Tice – himself a Lincolnshire MP - visited the works on Tuesday, with Mr Farage claiming there were "3 days to save British Steel" and the way to do that was to take it "into public ownership." The Conservative MP for nearby Brigg and Immingham, Martin Vickers, told the Commons on Monday: "It is very obvious that Jingye has cancelled the raw material orders that are essential to keep the furnaces going; those orders were due in mid-May. "When I was at the steelworks on Friday, I was told that unless another order for iron ore pellets could be placed this week, it would be too late." Vickers added that "nationalisation on a temporary basis" would "provide an opportunity to rebuild the industry, hopefully secure new private sector involvement and convince the customers—most notably Network Rail, which gets 95% of its rail track from the Scunthorpe works—that supply will continue." The Conservative frontbench has not committed the party to backing nationalisation. The party leader, Kemi Badenoch, said "nationalisation has got to be a last resort," adding "we need steel production in this country, it is important for national resilience." In a written statement published on Tuesday, the Business Minister Sarah Jones said: "Our priority is respecting workers, safeguarding jobs, and retaining steelmaking. "We have been clear that the best way forward is for British Steel to continue as a commercially-run business with private investment and government acting in support. "We call upon British Steel to accept our generous offer of financial support, and the associated conditions. "However, no options are off the table. The government remains resolute in our desire to secure a long-term future for the Scunthorpe steelworks, retaining steel production and putting an end to the years of uncertainty." The Liberal Democrats, the Green Party and an independent candidate are also contesting the Lincolnshire mayoral race. You can see a full list of candidates here.

There are fears among ministers that the company's blast furnaces could run out of raw materials within days.

Nationalisation an option for British Steel, says government

India cuts rates as Trump's tariffs put growth at risk

India's central bank has cut interest rates as growth slows down in Asia's third largest economy

The RBI also brought down its growth projections for this year from 6.7% to 6.5%. It said India's gross domestic product (GDP) will grow at 6.5% next year as well.

The repo rate is the level at which the central bank lends to commercial banks, influencing borrowing costs.

The Reserve Bank of India (RBI) reduced repo rates from 6.25% to 6%, a second cut since February when rates were brought down after nearly five years .

India's central bank has cut interest rates by 0.25% amid a spate of downgrades to growth following Donald Trump's tariff announcements.

Crucially, the RBI shifted its monetary policy stance to "accommodative" from "neutral", which means that the central bank would be more open to cutting rates in the future to stimulate a slowing economy.

"Concerns on trade frictions are coming true" and unsettling the global community, RBI governor Sanjay Malhotra said in his speech, adding that headwinds from disruptions to trade would continue to pose challenges for the economy.

Most economists who had previously expected only one more rate cut this year are now predicting more softening as Trump's tariff war puts growth in the world's fastest growing major economy at risk.

"The magnitude of rate cuts in the cycle now could be as high as 100bps (1%)," ICICI Bank said in a note, a view echoed by many other analysts.

Moderating inflation will give the RBI further elbow room to slash borrowing costs, according to several brokerages, as growth momentum further loses steam due to Trump's global trade war.

HSBC calculates GDP could take a direct hit of as much as half a percent this financial year due to slower export volumes around the world and weaker inflows of foreign funds.

The government's capacity to stimulate the economy to counter the impact of Trump's tariffs is also limited because "spending and tax revenues have lost steam in recent months", according to HSBC.

Starting Wednesday, Indian goods being exported to the US will face additional tariffs of up to 27%.

Tariffs on India are lower than 104% on China and 46% and 49% respectively on Vietnam and Cambodia.

The final impact on India's trade will depend on "how long the announced tariff structure lasts", ratings agency Crisil said. "The outcome will also be influenced by how other countries retaliate or negotiate with the US on tariffs."

China has already retaliated by imposing 34% reciprocal tariffs on US imports, while Europe is considering counter-measures.

India on the other hand has assumed a more restrained stance and is working towards concluding a trade deal with the US.

India has "agreed on the importance of the early conclusion of the Bilateral Trade Agreement", Foreign Minister S Jaishankar said on X (formerly Twitter) this week after his meeting with US Secretary of State Marco Rubio.

But even with a trade deal in place, India's economy is unlikely to be immune to a slowdown in other parts of the world with demand for its exports potentially reducing in the event of global growth falling off a cliff.

Wall Street bank JP Morgan has put the chance of a global recession at 60%, while ratings agency Moody's said the odds had risen from 15% to 35% due to tariffs.

At 6.5%, India continues to remain the world's fastest growing major economy, but its growth has sharply come off the 9.2% high recorded in financial year 2023-24.

India's central bank has cut interest rates by 0.25% and lowered its growth projections for this year.

RBI: India cuts rates as Trump's tariffs put growth at risk

Trump's tariffs are a huge blow to Vietnam's economic ambitions

7 hours ago Share Save Jonathan Head South East Asia correspondent Reporting from Bangkok Share Save

Getty Images Trump's tariffs are a blow for countries like Vietnam that rely heavily on exports

US President Donald Trump's sweeping tariffs targeting most of the world are now in effect – and outside China, no other region has been hit as hard as South East Asia. Near the top of the list are Vietnam and Cambodia which have been hit by some of the highest tariffs: 46% and 49%. Further down are Thailand (36%), Indonesia (32%) and Malaysia (24%). The Philippines gets a tariff of 17%, and Singapore of 10%. This is a huge blow for a region highly dependent on exports. Its widely admired economic development over the past three decades has largely been driven by its success in selling its products to the rest of the world, in particular to the US. Exports to the US contribute around 30% of Vietnam's GDP, and 25% of Cambodia's. That growth story is now imperilled by the punitive measures being imposed in Washington. The longer-term impact of these tariffs, assuming they stay in place, will vary, but will certainly pose big challenges to the governments of Vietnam, Thailand and Cambodia in particular.

Vietnam's "bamboo diplomacy", where it attempts to be friends with everyone and balance ties with both China and the US, will now be tested. Under the leadership of the new Communist Party Secretary-General To Lam, Vietnam has embarked on an ambitious plan to build an upper-income, knowledge-and-tech-based economy by the year 2045. It has been aiming for annual growth rates in excess of 8%. Exporting more to the US, already its biggest market, was central to that plan. It was also the main reason why Vietnam agreed to elevate their relationship to that of a Comprehensive Strategic Partnership in 2023. The Communist Party, which tolerates little dissent and has no formal political opposition, depends on its economic pledges for its legitimacy. Already viewed by many economists as too ambitious, these will now be even harder to meet.

Getty Images Vietnam's leader To Lam is aiming for an annual growth rate that is more than 8%

Thailand depends on US exports less than Vietnam – under 10% of GDP – but the Thai economy is in much worse shape, having underperformed for the past decade. The Thai government is trying to find ways to lift economic growth, most recently attempting but failing to legalise gambling, and these tariffs are another economic blow it cannot afford. For Cambodia, the tariffs pose perhaps the greatest political threat in the region. The government of Hun Manet has proved just as authoritarian as that of his father Hun Sen, whom he succeeded two years ago, but it is vulnerable. Keeping the Hun family's hold on power has required offering rival clans in Cambodia economic privileges like monopolies or land concessions, but this has helped create a glut of property developments, which are no longer selling, and a mass of grievances over land expropriations. The garment sector, which employs 750,000 people, has been a crucial social safety valve, giving steady incomes to Cambodia's poorest. Thousands of those jobs are now likely to be lost as a result of President Trump's tariffs.

BBC/ Xiqing Wang Exports to the US account for 25% of Cambodia's GDP

Unlike China, which has hit back with its own levies, the official message from governments in South East Asia is don't panic, don't retaliate, but negotiate. Vietnam has dispatched deputy prime minister Ho Duc Phoc to Washington to plead his country's case, and has offered to eliminate all tariffs on US imports. Thailand plans to send its finance minister to make a similar appeal, and has offered to reduce its tariffs and buy more American products, like food and aircraft. Malaysian Prime Minister Anwar Ibrahim is also heading to Washington, though with exports to the US making up only 11% of Malaysia's total, his country is less affected than some of its neighbours. However, the Trump administration appears to be in no mood to compromise. Peter Navarro, President Trump's senior counsellor on trade and manufacturing and one of the main thinkers behind the new policy, said in interviews on Monday that Vietnam's offer of zero tariffs was meaningless, because it would not address the deficit in trade where Vietnam sells $15 worth of goods to the US for every $1 it buys. He accused Vietnam of keeping multiple non-tariff barriers to US imports, and said that one-third of all Vietnamese exports to the US were actually Chinese products, trans-shipped through Vietnam. The proportion of Vietnamese exports which are being made or trans-shipped there to avoid US tariffs on China is difficult to assess, but detailed trade studies put it at between 7% and 16%, not one-third.

Getty Images Asian stocks plunged this week as Trump's tariffs kicked in

US exports have driven the economic success of countries like Vietnam and Cambodia.

Trump's tariffs are a huge blow to Vietnam's economic ambitions

British Steel solution is within reach, minister says

1 hour ago Share Save Charlotte Edwards Business reporter, BBC News Share Save

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A "commercial solution" for British Steel is "within reach" according to Culture Secretary Lisa Nandy, as the government considers nationalising the Chinese-owned business. Nandy told the BBC that British Steel - which employs 2,700 people - will "continue to be an important part of our economy for years to come" and an agreement over its future was "achievable and within sight". The company is at risk of running out of raw materials within weeks, raising fears over whether its blast furnaces which make high grade steel can keep running. It comes as the steel industry deals with a 25% tariffs on exports to the US, which came into force last month.

British Steel, which has been owned by China's Jingye since 2020, has said its two blast furnaces in Scunthorpe are "no longer financially sustainable". Jingye said it has invested more than £1.2bn into British Steel to maintain operations and claims it suffered financial losses of around £700,000 a day. "I am absolutely confident that we are doing every single thing that we can to secure the future of British Steel and particularly the site at Scunthorpe," said Nandy. Simon Boyd, managing director of REIDsteel, a British Steel customer, told the BBC that government intervention was the "only solution if we want to keep steel making in the UK". He said the firm only has "days left to secure the order of materials to prevent the forced closure of the blast furnaces over the next month". "We're talking days," he warned. The government has offered £500m of support to partly fund a switch from blast furnaces to more energy efficient electric arc furnaces. But the move has been rejected by the company. Electric arc furnaces also do not burn hot enough to make virgin steel, and are fed with scrap steel. Mr Boyd said Scunthorpe's current blast furnaces produce "the highest grade of steel available". "If we lose that capability we'll be wholly reliant on [countries] like China producing the blast furnace steel and electric arc furnaces, which make steel out of scrap, are all well and good but they're at least five years away," he said. It is very difficult and very expensive to get blast furnaces running again once they have been turned off, which would make the Scunthorpe site's existing vulnerability even more perilous. Mr Boyd added that he was "very encouraged" to hear the government is "finally" considering nationalisation. Roy Rickhuss, general secretary of the UK's largest steel workers union Community, told the BBC he agreed with the prime minister that "all options should be on the table and that includes nationalisation". "Whatever you decide to do, will come with a cost and if the government own the business then they'll have to pick up that cost," he added.

'Active discussions'

The UK government is considering nationalising the Chinese-owned firm which employs 2,700 people.

British Steel solution is within reach, minister says

Trump tariffs spark US government debt sell-off

23 minutes ago Share Save Michael Race Business reporter, BBC News Share Save

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Confidence in the US economy is plummeting as investors dumped government debt amid escalating concerns over the impact of Donald Trump's tariffs. The interest rate on US bonds - traditionally considered a "safe haven" investment in times of crisis - spiked on Wednesday to touch the highest since February. Sweeping taxes on goods being imported into the US from around 60 countries came into effect at midnight, while a tit-for-tat trade war between America and China gathered pace. After the US went ahead with a 104% tariff on products from China, Beijing hit back with 84% levy on American products.

Stock markets have been falling sharply over the past few days in reaction to Trump pressing ahead with tariffs. However, the sale of bonds - which are essentially an IOU issued by a government to raise money from financial markets - poses a major problem for the world's biggest economy. Buying US government debt, or Treasuries as they are known, is viewed as a safe investment because the state will pay back what it owes. But on Wednesday, the yield - or interest rate - on US bonds touched the highest level since February at 4.5%, making it more expensive for America to borrow money. Some analysts suggested that the US Federal Reserve might be forced to step in if turbulence continues, in a move reminiscent of the Bank of England's emergency action in 2022 following Liz Truss's mini-Budget. "We see no other option for the Fed but to step in with emergency purchases of US Treasuries to stabilise the bond market," said George Saravelos, global head of FX research at Deutsche Bank. "We are entering uncharted territory," he said, adding that it was "very hard" to predict how markets would react in the coming days as the bond market suggested investors had "lost faith in US assets".

'US recession a coin toss'

The cost of borrowing for the US government rose as confidence in the economy waned

Trump tariffs spark US government debt sell-off

Post Office to offload all directly-owned branches

The Communication Workers Union (CWU) called for the government to intervene immediately and examine alternative options.

It is understood the Post Office has received interest from potential retail partners including Tesco and Ryman, as well as sub-postmasters, to take on the loss-making branches.

About 1,000 staff working in these branches will be offered a choice to move to work for any new owner or take voluntary redundancy.

The Post Office has said it will offload the remaining 108 branches it directly owns and will move to a fully franchised network.

CWU general secretary Dave Ward said: "The Post Office's claim that these community services will be maintained by their failed franchising model is laughable to anyone who has seen their local Post Office services reduced to the back of a shop.

"The sell-off of WH Smith last week shows just how fragile and ill-thought out this model is. This is the full privatisation of the Post Office via the back door."

The Post Office confirmed last November that the future of the these sites would be under review as part of a five-year plan to overhaul the business.

A decision on who will take them over will be made in the coming weeks. The Post Office will stop running them by the autumn, subject to government funding.

Post Office chairman Nigel Railton said the 108 branches will either stay in the same location or be relocated nearby so customers continue to have access to the services.

He said moving to a fully franchised network was one part of enabling the Post Office to deliver a new deal for postmasters.

"By franchising these branches, we are protecting access to our services for communities right across the UK and realising £40m worth of savings that will enable us to uplift postmasters' remuneration by up to 10%," he said.

He said over the coming months the Post Office would continue to work with unions to consult with staff in the 108 branches and support them through the transition.

The Post Office said it would work with franchise partners with a clear track record of successfully running Post Office services or similar customer-focused retail to ensure customers continue to receive a high level of service once the branches are franchised.

The company said it remained committed to meeting the current requirement to have a minimum of 11,500 branches across the UK and to meet the six access criteria set by government.

Further details on proposals will be shared with local communities and stakeholders for individual branches in the coming weeks.

About 1,000 staff will be offered the choice to work for any new owner or take voluntary redundancy.

Post Office to offload all directly-owned branches

As Trump hikes tariffs again, nervous businesses weigh what comes next

3 hours ago Share Save Natalie Sherman Business reporter, New York Share Save

Watch: Trump says tariffs will be 'legendary' ahead of 104% tax on China

US President Donald Trump is ripping up the rulebook on trade that has been in place for more than 50 years. His latest round of sweeping tariffs, which came into force shortly after midnight on Wednesday, hits goods from some of America's biggest trading partners including China and the European Union with dramatic hikes in import duties. The president and his allies say the measures are necessary to restore America's manufacturing base, which they view as essential to national security. But it remains a potentially seismic action, affecting more than $2tn worth of imports, which will push the overall effective tariff rate in the US to the highest level in more than a century.

In the US, key consumer goods could see huge price rises, including an estimated 33% for clothing, and analysts are warning of near-certain global economic damage as sales in America drop, trade shrinks and production abroad falls. With the stock market reeling and political pressure in the US starting to build, the White House has worked to soothe nerves by floating the possibility of trade talks, touting conversations that have already begun with Japan, Vietnam and South Korea. But Trump has signalled resistance to the kinds of exemptions he granted during his first term, and even if these talks are ultimately productive, country-by-country deal-making will no doubt take time. "The primary question... is whether or not there will be negotiations," said Thierry Wizman, a global strategist at the investment bank Macquarie. "And no one has an answer to that because it's going to depend on the approach and the disposition of the negotiating parties." LIVE: Follow updates and analysis

EXPLAINED: What would S US-China trade war do?

WATCH: Is the US heading for a recession?

REACTION: The Canadians and Danes boycotting US products

The US already appears set on a collision course with China, which was its third biggest supplier of imports last year. The White House said on Tuesday that it was moving ahead with Trump's social media threat to add a further 50% levy on imports from China, on top of the 54% duties that had already been announced, unless Beijing agreed to withdraw its retaliation. Liu Pengyu, a spokesman for the Chinese embassy in Washington, declined to say if the two sides had spoken directly since the threat. But publicly, China has shown little willingness to back down, describing Trump's moves as "bullying" and warning that "intimidation, threat and blackmail are not the right way to engage with China". "If the US decides not to care about the interests of the US itself, China and the rest of the world, and is determined to fight a tariff and trade war, China's response will continue to the end," he said in a statement.

Watch: How Beijing is responding to Trump's tariff hike

The rapid change has shaken US businesses with decades of ties to China, which now find themselves paralysed and unsure how this escalating trade fight might end. "You would laugh if you weren't crying," said US businessman Jay Foreman, whose toy company Basic Fun! is known for classics such as Tonka Trucks and Care Bears, the vast majority of which are made in China. He put out notice to his suppliers to halt any shipments to the US earlier this week, as the US announced it would hit goods from China with duties starting at 104%. "We just have to hold our shipments until this thing gets sorted out," he said. "And if it doesn't get sorted out, them I'm going to sell down the inventory that I have in my warehouse and pray." Speaking to Congress on Tuesday, Jamieson Greer, who leads the office of the US Trade Representative, declined to set a timeline for how quickly talks might progress. "The president is fixed in his purpose. This trade deficit and offshoring and the loss of jobs has persisted for too long," he said, while acknowledging the measures might lead to a "challenging" economic adjustment. "It is a moment of drastic, overdue change, but I am confident the American people will rise to the occasion as they have done before," he said.

Shares in the US resumed their downward slide on Tuesday, giving up early gains spurred by Trump comments about trade talks that the fight might see a quick resolution. The S&P 500 is now trading at its lowest level in more than a year, after seeing roughly 12% of its value wiped out since the announcement last Wednesday. Stock markets from Japan to Germany have also been shaken, as investors assess the wider repercussions of the actions. In the UK, the FTSE 100 has dropped about 10%. "What I'm really seeing is trepidation, uncertainty, a lot of questions, a lot of people wanting us to predict what will happen next," said Amy Magnus, director of compliance and customs affairs for Deringer, a Vermont-based firm that is one of America's top five customs brokers. "But I have entered into a world that I cannot predict." Erin Williamson, vice-president of US customs brokerage at GEODIS, a global supply chain operator, said on Tuesday afternoon, said that the uncertainty had prompted some of her firm's clients to simply put shipments on pause. "One of the top ways that you can confirm that you're not putting your business at risk is really holding off until maybe the dust settles," she said. The uncertainty is raising the risks to the economy, said Ernie Tedeschi, director of economics of the Budget Lab at Yale, which is not predicting a recession in the US, but still expects tariffs announced so far this year will cost the US 600,000 jobs and lead to a roughly $3,800 hit to purchasing power for the average household.

Business owners say the rapid change in US trade policy, including major tariffs on China, has left operations in flux.

As Trump hikes tariffs, nervous businesses weigh what comes next

Councils offer grants to help with living costs

Households claiming certain benefits and in energy-efficient properties are eligible (stock photo)

Hundreds of households in West Sussex have benefited from cash grants to help with the cost of living.

Adur & Worthing Councils said they had written to more than 600 households claiming Housing Benefit or Council Tax Support and living in energy-efficient properties, to offer £150 towards bills and essential items.

So far, more than 400 households have successfully applied for the grant, which was paid directly into bank accounts last week, the authorities said.

Adur councillor Sharon Sluman said "innovative database technology" had been used to "target support to some of the most vulnerable members of our community".

More than 400 households have successfully applied, with £150 going directly into their accounts.

Adur & Worthing Councils offer grants to help with cost of living

The Canadians and Danes boycotting American products

3 hours ago Share Save Anne Cassidy Business reporter Share Save

Getty Images Supermarkets in Canada have been putting Canadian flag stickers on domestic goods

Todd Brayman is no longer buying his favourite red wine, which is from California. A veteran of the Canadian Armed Forces, he is one of a growing number of people in Canada, Europe, and other parts of the world, who are avoiding buying US products due to President Trump's tariffs and treatment of US allies. "I have in my life served alongside American forces. It is just profoundly upsetting and disappointing to see where we are given the historical ties that our two countries have," says Mr Brayman, who lives in Nova Scotia. "But I think right now it's time to stand up and be counted, and in my mind, that means buying local and supporting Canadian business." Together with his wife, Mr Brayman has replaced all the American products he used to buy, including his previous wine of choice, with Canadian alternatives. "Luckett Phone Box Red wine, which is from right here in Nova Scotia, is great," he says.

Determining which products are Canadian isn't always easy however. "Sometimes labelling can be misleading," adds Mr Brayman. To help, he now uses an app on his phone that can scan a product's barcode and identify where it's from. If the product is identified as American, the app suggests Canadian alternatives. The app, called Maple Scan, is one of numerous emerging in Canada to help people shop local. Others include Buy Canadian, Is This Canadian? and Shop Canadian. Maple Scan's founder, Sasha Ivanov, says his app has had 100,000 downloads since it launched last month. He believes the momentum around buying Canadian is here to stay. "Lots of Canadians have told me, 'I'm not going back'. It's important that we support local regardless," he says. Canadians like Mr Brayman are boycotting American products in response to a raft of import tariffs introduced by Trump. These included tariffs of 25% on all foreign cars, steel and aluminium, and 25% tariffs on other Canadian and Mexican goods. Meanwhile, other European Union exports will get tariffs of 20%, while the UK is facing 10%. Trump says the tariffs will boost US manufacturing, raise tax revenue and reduce the US trade deficit. However, they have spooked global markets, which have fallen sharply over the past month. Trump has even expressed a desire for Canada to join the US as its 51st state, something the Canadian government was quick to strongly reject. Ottawa has also responded with C$60bn ($42bn; £32bn) in counter tariffs, as well as additional tariffs on the US auto sector. And there has been a substantial drop in the number of Canadians travelling to the US.

Todd Brayman Royal Canadian Navy veteran Todd Brayman says he is "profoundly upset" by the current bad relations between the US and Canada

Groups dedicated to boycotting US goods have also emerged in European countries. Momentum behind the boycott is particularly strong in Denmark, whose territory of Greenland Trump has said he wants to acquire. Denmark's largest grocery store operator, Salling Group, recently introduced a symbol, a black star, on pricing labels to denote European brands. Bo Albertus, a school principal who lives in Skovlunde, a suburb of Copenhagen, says joining the boycott was his way of taking action. "Statements that Trump made about wanting to buy Greenland, that was just too much for me," he says. "I can't do anything about the American political system, but I can vote with my credit card." One of Mr Albertus's first moves was to cancel his subscriptions to US streaming services, including Netflix, Disney Plus and Apple TV. "My 11-year-old daughter is a bit annoyed about it, but that's the way it is. She understands why I do it," he says. Mr Albertus is the administrator for a Danish Facebook group dedicated to helping people boycott US goods. In the group, which has 90,000 members, people share recommendations for local alternatives to US goods, from shoes to lawnmowers. Mr Albertus says: "It's a movement that is quite a lot bigger than just our little country, so it all that adds up."

Mette Heerulff Christiansen, the owner of a grocery shop in Copenhagen called Broders has stopped stocking American products, such as Cheetos crisps and Hershey's chocolate, in her store. She is substituting them with Danish or European products where possible. Ms Christiansen is also swapping out products she uses at home. She's finding some easier to replace than others. "Coca-Cola is easy to substitute with Jolly Cola, a Danish brand," she says. "But technology, like Facebook, that's totally difficult to avoid." She believes the boycott movement in Denmark is helping people to channel their anger at Trump's policies and rhetoric. "I think it's more for the Danish people to feel good that they are doing something," she says.

Mette Heerulff Christiansen Danish shopkeeper Mette Heerulff Christiansen has removed US products from her shelves

Douglas Irwin, a professor of economics at Dartmouth College in the US, who specializes in the history of US trade policy, believes the economic impact of the boycott may be limited. "It is hard to judge how economically significant the consumer boycotts will be in terms of reducing trade with the United States," he says. "In the past, boycotts have not lasted long and have not achieved much. It starts as a hostile reaction to some US action but tends to fade with time," he says. For now though, the rising Buy Canadian sentiment in Canada is boosting sales for many local brands. The CEO of Canadian grocer Loblaw posted on LinkedIn that weekly sales of Canadian products were up by double digits. Bianca Parsons, from Alberta in Canada, is behind an initiative to promote locally-made goods, called Made In Alberta, which she says has had a surge in interest since the tariffs were introduced. "We're now getting over 20,000 hits [to the site] every two weeks." Ms Parsons, who is the executive director of the Alberta Food Processors Association, adds: "I've had producers reach out to us and say: 'I'm selling out at stores that I would never sell out before, thank you so much'."

Several Canadian provinces, including Ontario and Nova Scotia, have removed US-made alcoholic beverages from their liquor store shelves in response to tariffs, a move the boss of Jack Daniel's maker Brown-Forman has said is "worse than tariffs". Among the American businesses feeling the impact is Caledonia Spirits, a distiller based in Vermont, near the Canadian border. Ryan Christiansen, Caledonia's president and head distiller, says his business had an order on track for shipment to Quebec cancelled directly after tariffs were announced. "My sense is that everyone's just being a little too aggressive and, unfortunately, I think America started that," says Mr Christiansen. "I do understand that the action America took needed a counter reaction. "If it were up to me, I'd be at the table trying to resolve this in a friendly way, and I'm hopeful that the leaders in America take that approach."

Ryan Christiansen US distiller Ryan Christiansen wants American leaders to take a more "friendly" approach to trade issues

As anger grows over Trump's tariffs, apps and social media groups are helping people avoid US goods.

The Canadians and Danes boycotting American products

Government rejects 'buy British' campaign to combat tariffs

But ministers are reported to be reviewing Whitehall procurement rules to give an advantage to British firms bidding for government contracts.

Chancellor Rachel Reeves told MPs such a campaign would be "inward looking" and was "not the way forward", in response to Liberal Democrat calls to encourage the public to buy more British goods and produce .

Sir Keir Starmer's spokesman said the UK was "an open-trading nation" and the government was "not going to tell people where they buy their stuff".

Downing Street has declined to officially back a "buy British" campaign in response to Donald Trump's tariffs.

The government has repeatedly stressed that it will not be rushed into retaliatory measures after the US slapped a 10% import tax on nearly all UK products entering the US, on top of already-announced 25% levies on aluminium, steel and cars.

The PM told a senior group of MPs the government is keeping its options open for retaliating to US tariffs "if necessary" but he did not think the UK should "jump in with both feet".

"I think that trying to negotiate an arrangement which mitigates the tariffs is better," he told the House of Commons Liaison Committee.

During Treasury questions in the Commons, Lib Dem Treasury spokesperson Daisy Cooper urged the government to show people concerned about the impact on their cost of living that "Britain is not going to take Trump's tariffs lying down".

And she called on the chancellor to get behind her party's campaign for a new "Made in Britain" logo for consumer products backed by an advertising blitz.

Reeves told the Lib Dem MP "ratcheting up barriers to trade, ratcheting up tariffs will not be in our country's interests, whether that's in inflation or indeed for supply chains".

She added: "In terms of buying British, I think everyone will make their own decisions.

"What we don't want to see is a trade war, with Britain becoming inward-looking, because if every country in the world decided that they only wanted to buy things produced in their country, that is not a good way forward."

The prime minister's official spokesman also rejected the "Buy British" campaign but added that the government "is always going to back British producers, British manufacturers".

In response to a call from Tory MP John Hayes to use government procurement to back British jobs and British products, Rachel Reeves said Cabinet Office minister Pat McFadden "has set out new reforms to procurement rules to enable just that".

She added: "We want more British businesses to win contracts, we want more small businesses in Britain to win contracts."

In February, the government set out new rules aimed at making it easier for small and medium-sized British companies to bid for government contracts, building on legislation passed by the previous Conservative government.

According to the Daily Telegraph, the government will go further when it unveils its industrial strategy and public spending review later this year.

Major public sector infrastructure projects - such as transport, offshore wind and defence - will be told to "Buy British", the newspaper says.

Ministers say telling people what to buy is not the answer to US tariffs but they will back UK manufacturers.

Government rejects 'buy British' campaign to combat Trump tariffs

Musk labels Trump trade adviser 'moron' over Tesla comments

3 hours ago Share Save Liv McMahon Technology reporter Share Save

Reuters

Elon Musk has called President Donald Trump's trade adviser, Peter Navarro, a "moron" over comments he made about his electric vehicle firm, Tesla. Musk - who is also a member of the Trump administration - also said Navarro was "dumber than a sack of bricks" in posts on his social media platform X. It was in response to an interview Navarro gave in which he described Tesla as a "car assembler", rather than a manufacturer, because of its use of foreign-made parts. Navarro was being interviewed about Trump's tariff policy and said he wanted to see such parts made in the US in the future instead. Musk said the claims were "demonstrably false." The BBC has asked the White House for comment.

Trump has in part justified his global wave of tariffs by saying he wants to revive manufacturing in the US. This is an argument Navarro was expanding on during an appearance on CNBC on Monday. "If you look at our auto industry, right, we're in assembly line for German engines and transmissions right now", he said. "We're going to get to a place where America makes stuff again, real wages are going to be up, profits are going to be up".

EPA-EFE Peter Navarro advises President Trump on trade, manufacturing and growth policy

Peter Navarro had described Musk's electric car company as a "car assembler" rather than manufacturer.

Elon Musk labels Trump adviser Navarro 'moron' over Tesla comment

Starmer criticises watchdog's benefits forecasts

1 hour ago Share Save Kate Whannel Political reporter Share Save

PA Media

Prime Minister Sir Keir Starmer has criticised how the Office for Budget Responsibility watchdog has analysed the impact of his benefit changes. Appearing at a parliamentary committee, he said the OBR, which monitors public spending plans, had assumed that "not a single person" would change their behaviour as a result of the government's proposals. "I personally struggle with that way of looking at it, because I do think these measures will make a material difference," Sir Keir said. The prime minister hopes his plans, which include making it harder to claim disability payments, will save money and help get more people into work, however there is uneasiness among his own MPs over the cuts.

Sir Keir was challenged over the plans during an appearance in front of Parliament's Liaison Committee, made up of senior MPs. Debbie Abrahams, chairwoman of the work and pensions committee, noted that an impact assessment produced by the government said the changes could push 250,000 people into poverty, while the Joseph Rowntree Foundation charity put the figure at 400,000. The Labour MP said children who grow up in poverty are more likely to struggle to find work or employment later in life and asked the prime minister how he would ensure his approach addressed the root causes of poverty "rather than add to them".

In response, Sir Keir said: "On the impact assessments it is significant to my mind that the ability of any policy or legislation to change any behaviour at all is not priced in. "The OBR has scored nothing against any change here - the assumption is that not a single person changes their behaviour." Last month, the OBR published its assessment of the government's spending plans and performance. On the government's plans to provide additional support for people with health problems to get into work, the OBR said it might increase employment, but the government had not yet provided enough details of the policy for its effectiveness to be judged. On other parts of the policy, such as reducing the eligibility for health and disability benefits, the OBR said it had not been given enough time to develop an analysis of the impact on the labour market and that it would make a full assessment before its next forecast. The government's changes include stricter eligibility tests for those claiming personal independence payments and a freezing of incapacity benefits under universal credit. At the committee hearing, the prime minister also said: He was disappointed about US tariffs but said the UK should not "jump in with both feet" into retaliation

"All options remain on the table" when it comes to the future of the Scunthorpe steel plant

A review into social care would produce an interim report by 2026

The PM says he "struggles" with how the Office for Budget Responsibility calculates the impact his policies.

Keir Starmer criticises watchdog's benefits forecasts

Philip Green loses case over naming in Parliament

1 hour ago Share Save Joshua Nevett Political reporter Share Save

PA Media

A court has rejected businessman Sir Philip Green's complaint about being named in Parliament in relation to misconduct allegations reported by a newspaper. The former Topshop boss launched the case after a Labour peer said in the House of Lords that the tycoon had used a court order to stop the Telegraph publishing a story about the allegations. Parliamentary privilege gives MPs and peers absolute free speech and their comments can be reported without the threat of legal action. On Tuesday, European Court of Human Rights ruled Sir Philip's human rights were not breached when he was named in the House of Lords in 2018.

Sir Philip's court injunction prevented the Telegraph from publishing misconduct allegations, including sexual and racial abuse and bullying, against five employees. The ex-employees agreed to keep the details of their complaints confidential under non-disclosure agreements. But the allegations were eventually reported after Labour peer Lord Hain revealed Sir Philip was behind the injunction in October 2018, using parliamentary privilege. In a statement at the time, Sir Philip "categorically and wholly" denied being guilty of any "unlawful sexual or racist behaviour". Sir Philip has previously accused the Telegraph of "pursuing a vendetta" against him and his staff. In a complaint lodged in April 2019, Sir Philip's lawyers told justices in Strasbourg that Lord Hain's statement made his breach of confidence claim against the Telegraph futile, violating his right to a fair trial and breaching his right to privacy. Lawyers for the businessman challenged the absence of controls on the power of parliamentary privilege to reveal information covered by an injunction.

The European Court of Human Rights ruled Sir Philip's human rights were not breached.

Philip Green loses case over naming in Parliament

What is all this tariff stuff about? Your questions answered

34 minutes ago Share Save Colletta Smith Cost of Living Correspondent Abi Smitton Cost of Living producer Share Save

BBC

Whether it's pensions, mortgages, investments or the cost of everyday items, many of you have been getting in touch with Your Voice, Your BBC News to ask how the global tariffs and recent stock market turmoil may impact your personal finances. The BBC's Cost of Living Correspondent, Colletta Smith, has been answering your questions.

'If I have a private pension, am I going to lose money?'

Pauline Garbutt, 83, wants to know how her pension might be affected

If you're far away from retirement age, then sit tight because pensions are a long-term investment. As we have seen, a lot can change in a very short space of time so don't panic. If you're getting close to retiring, your pension pot is likely to be moved to less risky investments, such as government bonds. When stock markets fall, these bonds tend to do better than traditional investments. Pensioners with a fixed annuity should not be affected. But if you're currently living off a pension that has been invested, that could mean you get less than you expected because of this stock market fall. It's important to make a plan about how you will make up any shortfall.

'I've lost £1,500 in three days. When will things stabilise?'

BBC News

Brian Waldie, 64, has been investing into a Child Trust Fund for his youngest daughter since 2007. In the last three days, he has seen £1,500 lost from the account. "We were trying to make our daughter's life simple but this is money I can't afford to lose," he told Your Voice, Your BBC News.

If you invest directly, through a Stocks and Shares ISA or Child Trust Fund, then you will have seen some big changes over the last couple of days. Providers should always tell you that investments can go down as well as up. If you want more certainty, it may be worth facing up to reality and making a new financial plan.

'If we put a 10% tariff on all goods coming into our country, will it stop other countries from dumping cheap goods on us?'

Stuart Burrows, 72, from Manchester got in touch through Your Voice, Your BBC News

The government has said it won't rush into making any decisions about introducing tariffs on goods coming into the UK. Right now, items coming from the USA may well end up costing more, but it's also possible that products from countries that have been hit with tariffs to import into the US may just decide that it is cheaper to send their products here instead. With cheaper foreign imports coming from countries like China, Japan and South Korea, it may push the prices down of some products here in the high street as firms compete with each other to attract customers with lower prices than rivals.

'How can a stock market crash lead to lower mortgages?'

The BBC's Cost of Living Correspondent answers your questions about how the tariffs might impact your money

What is all this tariff stuff about? Your questions answered

Global stock markets have been in a frenzy after US President Donald Trump announced new widespread tariffs on 2 April, which he dubbed "Liberation Day".

The BBC's North America business correspondent Michelle Fleury explains three warning signs to watch for as US recession fears rise.

Michelle Fleury explains the factors to watch in the economy after President Trump’s tariff announcements.

Is the US heading for a recession? Three warning signs to watch

China is not backing down from Trump's tariff war. What next?

2 hours ago Share Save Yvette Tan, Annabelle Liang and Kelly Ng Reporting from Singapore Share Save

Getty Images Xi Jinping has shown no signs that he will blink first in the tariff standoff with the US

The trade war between the world's two biggest economies shows no signs of slowing down - Beijing has vowed to "fight to the end" hours after US President Donald Trump threatened to nearly double the tariffs on China. That could leave most Chinese imports facing a staggering 104% tax - a sharp escalation between the two sides. Smartphones, computers, lithium-ion batteries, toys and video game consoles make up the bulk of Chinese exports to the US. But there are so many other things, from screws to boilers. With a deadline looming in Washington as Trump threatens to introduce the additional tariffs from Wednesday, who will blink first? "It would be a mistake to think that China will back off and remove tariffs unilaterally," says Alfredo Montufar-Helu, a senior advisor to the China Center at The Conference Board think tank. "Not only would it make China look weak, but it would also give leverage to the US to ask for more. We've now reached an impasse that will likely lead to long-term economic pain." Global markets have slumped since last week when Trump's tariffs, which target almost every country, began coming into effect. Asian stocks, which saw their worst drop in decades on Monday after the Trump administration didn't waver, recovered slightly on Tuesday. Meanwhile, China has hit back with tit-for-tat levies - 34% - and Trump warned that he would retaliate with an additional 50% tariff if Beijing doesn't back down. Uncertainty is high, with more tariffs, ranging to more than 40%, set to kick in on Wednesday. Many of these would hit Asian economies: tariffs on China would rise to 54%, and those on Vietnam and Cambodia, would soar to 46% and 49% respectively. Experts are worried about the speed at which this is happening, leaving governments, businesses and investors little time to adjust or prepare for a remarkably different global economy.

Watch: World leaders react as higher tariffs due to take effect

How is China responding to the tariffs?

China had responded to the first round of Trump tariffs with tit-for-tat levies on certain US imports, export controls on rare metals and an anti-monopoly investigation into US firms, including Google. This time too it has announced retaliatory tariffs, but it also appears to be bracing for pain with stronger measures. It has allowed its currency, the yuan, to weaken, which makes Chinese exports more attractive. And state-linked enterprises have been buying up stocks in what appears to be a move to stabilise the market.

Getty Images China exports a variety of goods to the US, from silk to smartphones

The prospect of negotiations between the US and Japan seemed to buoy investors who were fighting to claw back some of the losses of recent days. But the face-off between China and the US - the world's biggest exporter and its most important market - remains a major concern. "What we are seeing is a game of who can bear more pain. We've stopped talking about any sense of gain," Mary Lovely, a US-China trade expert at the Peterson Institute in Washington DC, told the BBC's Newshour programme. Despite its slowing economy, China may "very well be willing to endure the pain to avoid capitulating to what they believe is US aggression", she added. Shaken by a prolonged property market crisis and rising unemployment, Chinese people are just not spending enough. Indebted local governments have also been struggling to increase investments or expand the social safety net. "The tariffs exacerbate this problem," said Andrew Collier, Senior Fellow at the Mossavar-Rahmani Center for Business and Government at Harvard Kennedy School. If China's exports take a hit, that hurts a crucial revenue stream. Exports have long been a key factor in China's explosive growth. And they remain a significant driver, although the country is trying to diversify its economy with high-end tech manufacturing and greater domestic consumption. It's hard to say exactly when the tariffs "will bite but likely soon," Mr Collier says, adding that "[President Xi] faces an increasingly difficult choice due to a slowing economy and dwindling resources".

It goes both ways

But it's not just China that will be feeling the impact. According to the US Trade Representative office, the US imported $438bn (£342bn) worth of goods from China in 2024, with US exports to China valued at $143bn, leaving a trade deficit of $295bn.

Getty Images China is the world's biggest exporter - and that has played a big role in its rapid economic growth

And it's not clear how the US is going to find alternative supply for Chinese goods on such short notice. Taxes on physical goods aside, both countries are "economically intertwined in a lot of ways - there's a massive amount of investment both ways, a lot of digital trade and data flows", says Deborah Elms, Head of Trade Policy at the Hinrich Foundation in Singapore. "You can only tariff so much for so long. But there are other ways both countries can hit each other. So you might say it can't possibly get worse, but there are many ways in which it can." The rest of the world is watching too, to see where Chinese exports shut out of the US market will go. They will end up in other markets such as those in South East Asia, Ms Elms adds, and "these places [are dealing] with their own tariffs and having to think about where else can we sell our products?" "So we are in a very different universe, one that is really murky."

How does this end?

Unlike the trade war with China during Trump's first term, which was about negotiating with Beijing, "it's unclear what is motivating these tariffs and it's very hard to predict where things might go from here," says Roland Rajah, lead economist at the Lowy Institute. China has a "wide toolkit" for retaliation, he adds, such as depreciating their currency further or clamping down on US firms. "I think the question is how restrained will they be? There's retaliation to save face and there's pulling out the whole arsenal. It's not clear if China wants to go down that path. It just might."

Getty Images The Shanghai Composite fell by more than 7% on Monday as Asian stocks plunged

The US-China trade war shows no signs of slowing down, leaving the world unsure of what to expect.

China is not backing down from Trump's tariff war. What next?

Mortgage rates set to drop after tariff turmoil

1 hour ago Share Save Mitchell Labiak Business reporter, BBC News Share Save

Getty Images

Some lenders are set to cut rates on mortgages after turmoil from US President Donald Trump's tariff policy raised expectations that UK interest rates could be cut further this year. TSB Bank said it will reduce some two-year fixed rate mortgages by up to 0.25 percentage points on Wednesday, following MPowered Mortgages which trimmed rates across a number of its deals. Financial markets and economists are predicting that the Bank of England will cut interest rates by more than expected this year to avoid an economic downturn. The Bank's main rate stands at 4.5%. It was forecast to reduce it twice this year but the uncertainty created by US tariffs has changed the expectation to three cuts.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said the Bank of England, and other countries' central banks, "will be really looking to cut interest rates as much as possible in order to support growth". "And of course mortgage companies start to price that in right away and we've already seen mortgage rates start to fall and we should see plenty of that in the coming days," she added.

The average mortgage rates on two-year and five-year fixed deals were unchanged on Tuesday, at 5.32% and 5.17% respectively, according to financial information company Moneyfacts, although it said rates were expected to come down in the coming weeks.

Interest rates are forecast to fall further as Donald Trump's trade taxes fuel economic uncertainty.

Mortgage rates set to drop after tariff turmoil

Meta expands restrictions for teen users to Facebook and Messenger

2 hours ago Share Save Liv McMahon Technology reporter Share Save

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Meta is expanding Teen Accounts - what it considers its age-appropriate experience for under 18s - to Facebook and Messenger. The system involves putting younger teens on the platforms into more restricted settings by default, with parental permission required in order to live stream or turn off image protections for messages. It was first introduced last September on Instagram, which Meta says "fundamentally changed the experience for teens" on the platform. But campaigners say it's unclear what difference Teen Accounts has actually made.

"Eight months after Meta rolled out Teen Accounts on Instagram, we've had silence from Mark Zuckerberg about whether this has actually been effective and even what sensitive content it actually tackles," said Andy Burrows, chief executive of the Molly Rose Foundation. He added it was "appalling" that parents still did not know whether the settings prevented their children being "algorithmically recommended" inappropriate or harmful content. Matthew Sowemimo, associate head of policy for child safety online at the NSPCC, said Meta's changes "must be combined with proactive measures so dangerous content doesn't proliferate on Instagram, Facebook and Messenger in the first place". But Drew Benvie, chief executive of social media consultancy Battenhall, said it was a step in the right direction. "For once, big social are fighting for the leadership position not for the most highly engaged teen user base, but for the safest," he said. However he also pointed out there was a risk, as with all platforms, that teens could "find a way around safety settings." The expanded roll-out of Teen Accounts is beginning in the UK, US, Australia and Canada from Tuesday. Companies that provide services popular with children have faced pressure to introduce parental controls or safety mechanisms to safeguard their experiences. In the UK, they also face legal requirements to prevent children from encountering harmful and illegal content on their platforms, under the Online Safety Act. What the Online Safety Act is - and how to keep your child safe online Roblox recently enabled parents to block specific games or experiences on the hugely popular platform as part of its suite of controls.

What are Teen Accounts?

How Teen Accounts work depend on the self-declared age of the user. Those aged 16 to 18 will be able to toggle off default safety settings like having their account set to private. But 13 to 15 year olds must obtain parental permission to turn off such settings - which can only be done by adding a parent or guardian to their account. Meta says it has moved at least 54 million teens globally into teen accounts since they were introduced in September. It says that 97% of 13 to 15 year olds have also kept its built-in restrictions. The system relies on users being truthful about their age when they set up accounts - with Meta using methods such as video selfies to verify their information. It said in 2024 it would begin using artificial intelligence (AI) to identify teens who might be lying about their age in order to place them back into Teen Accounts. Findings published by the UK media regulator Ofcom in November 2024 suggested that 22% of eight to 17 year olds lie that they are 18 or over on social media apps. Some teenagers told the BBC it was still "so easy" to lie about their age on platforms.

Meta Meta will notify under 18s on Facebook and Messenger that their account will become a Teen Account via in-app notifications.

The system imposes more restricted settings on younger users - though campaigners say it's unclear what difference they make.

Meta expands Teen Accounts to Facebook and Messenger

Chris Mason: What can Starmer do in a world buffeted by Trump?

3 hours ago Share Save Chris Mason • @ChrisMasonBBC Political editor Share Save

Reuters

As if the economic picture in the UK wasn't shaky already, it has now got shakier still. The cost of living is continuing to bite for many and people will worry about the prospect of recession. It is the last thing the government could do with; it is the last thing millions of families could do with. New polling for More In Common suggests two thirds of people in the UK are worried about America's tariffs, with just over half fearing it will make cost of living pressures even harder. And nearly twice as many people in the UK would support the government retaliating with its own tariffs on America than those who oppose the idea. The government is maintaining its reluctance to do this, while keeping the option open.

The prime minister has said that the world has "fundamentally changed," which poses the question whether he and his government is willing to fundamentally change its outlook and policies? Firstly, that promise not to put up income tax, VAT or National Insurance. National Insurance paid by employers has gone up, but responding to a question from GB News, Sir Keir Starmer repeated his promise not to put it up for employees, or raise income tax or VAT between now and the next general election. And what, asked Sky News, about his self imposed restrictions on government borrowing, known as his fiscal rules? My eyebrows weren't the only ones that were raised a little when, while addressing reporters' questions at the Jaguar Land Rover factory in Solihull in the West Midlands on Monday, he swerved a direct answer on whether he might loosen those rules. But moments after the event finished, his team insisted they were "iron clad" as one senior figure put it. This would mean, if the economy does take a hit from the tariffs, that everything else being equal, budgets for government departments will be tighter than currently anticipated.

The government is leaning into this moment of turbulence but can it make a difference.

What can Keir Starmer do in a world buffeted by Donald Trump?

A revolution is underway in India's trainer industry

18 minutes ago Share Save Priti Gupta Technology Reporter Share Save

Getty Images India's trainer market is attractive for overseas firms

It's likely that you have not heard of Taiwan's Hong Fu Industrial Group, but look down on a busy street and you may well see its products. Hong Fu is the world's second-biggest maker of trainers (sneakers) supplying shoes to Nike, Converse, Adidas, Puma and many others. It makes around 200 million pairs of sports shoes a year. So when it made a big investment in India's market, the footwear industry took note. Hong Fu is currently building a giant plant in Panapakkam, in the state of Tamil Nadu in south eastern India. When fully operation, sometime in the next three to five years, it will make 25 million pairs of shoes a year, employing as many as 25,000 workers. The project has Indian partners, including Aqeel Panaruna, the chairman of Florence Shoe Company: "The international market is saturated and they [Hong Fu] were looking for a new market," he explains. "There is a drastic increase in non-leather footwear in India. It has huge potential," Mr Panaruna added.

The Indian government is keen to attract such investment, hoping it will raise standards in the footwear industry and boost exports. To spur the industry, last August the Bureau of Indian Standards (BIS) introduced new quality rules for all shoes sold in India. Under those standards, for example, materials will have to pass tests of strength and flexibility. "These BIS standards are really about cleaning up the market. We've had too many low-quality products flooding in, and consumers deserve better," says Sandeep Sharma a journalist and footwear industry expert.

India has a vast network of small-scale shoemakers

But many in India can't afford shoes from well-known brands. Serving them is a huge and intricate network of small shoe makers, known as the unorganised sector. Their affordable products are estimated to account for two-thirds of the total footwear market. Ashok (he withheld his full name) counts himself as part of that sector, with shoe making units all across the district of Agra in northern India. He estimates that 200,0000 pairs of shoes are made everyday by operations like his across Agra. "Many consumers, especially in rural and lower-income urban areas, opt for cheaper local footwear instead of branded options," he says. "Many organised brands struggle to expand their retail footprint in semi-urban and rural areas because we cater to them." So how will the new government standards affect makers like Ashok? "It's complicated," says Mr Sharma. "I think the government is trying to walk a tightrope here. They can't just shut down thousands of small businesses that employ millions of people - that would be economic suicide. "What I'm seeing is more of a carrot-and-stick approach. They're pushing for standards, but also rolling out programs to help small manufacturers upgrade their processes. It's not about wiping out the unorganised sector but gradually bringing them into the fold." Making the situation more complicated is that the unorganised sector is well-known for making counterfeit shoes of big brands. While popular among Indian shoppers looking for a stylish bargain, other countries have long-complained about the losses caused.

Zen Barefoot Zen Barefoot is trying to popularise barefoot shoes in India

Meanwhile, a host of new Indian trainer-makers are springing up, to serve India's growing middle class. Sabhib Agrawal is trying to get those buyers interested in barefoot footwear - shoes which, their makers say, are healthy for the foot as they encourage natural, or barefoot, movement. Mr Agrawal says his company, Zen Barefoot, is unusual as much of the Indian footwear industry is not very innovative. "There are very few people who are ready to take time and invest in new technologies here. Indian manufacturing is a very profit- first market, ROI [return on investment] driven. "And in a lot of cases, even the government is not ready to enable these industries through grants or tax relief, which makes it quite difficult." Comet is one Indian firm looking to innovate. It claims to be the first homegrown trainer brand that owns the whole production process, from design to manufacturing. "This level of control allows us to experiment with materials, introduce innovative silhouettes, and continuously refine comfort and fit based on real feedback," says founder Utkarsh Gupta. He says the Comet shoes are adapted to India's climate and roads. "Most homegrown brands rely on off-the-shelf soles from the market, but when we started Comet, we realized that these were lacking in quality, durability, and grip," he says. Change is coming to the footwear sector he says. "The shift to high value is now happening." "Many high value brands need to move their manufacturing to India. In 3-5 years, we should have a robust ecosystem to compete in the international sneaker market," he adds.

Comet Comet shoes handles its own design and production

India wants to boost the domestic trainer industry but will small domestic makers suffer?

A revolution is underway in India's trainer industry

The homebuyers who lost thousands when their off-plan dream turned sour

2 hours ago Share Save Lizzy Steel BBC Yorkshire and Lincolnshire Investigations Reporting from Leeds Share Save

BBC Luciana and Enrico Marini lost more than £21,000 after they were unable to gain a mortgage on a home they were in the process of buying

With panoramic views of Leeds, stylish decor and an on-site gym, new parents Enrico and Luciana Marini were dreaming of their future life in their city centre flat. But after six years of saving, the first-time buyers lost their £21,000 deposit after the new-build apartments were devalued by mortgage lenders they approached. The BBC has spoken to several prospective owners who were given the same "earth-shaking" news, shattering their finances and plans.

Unable to gain a mortgage and locked into a contract, the developer was legally entitled to keep their deposit - despite the pair having to pull out of the sale. Mrs Marini says: "They get your money and say, 'don't worry about the mortgage until three years from now.'" The couple say they felt "pressured" by North Property Group estate agents to proceed with the purchase in 2021, with a non-refundable £5,000 reservation fee locking in a limited time 10% discount.

The couple put down a deposit for a flat at the Phoenix development in Leeds in 2021

Both the agent and a lawyer recommended by the firm told them they did not need a mortgage offer until the £230,000 flat was near completion, the couple say. "All the money that we were going to invest on our family, things you want for your children, is just lost," Mrs Marini adds. "It's just devastating." North Property Group "categorically deny the allegations of high-pressure sales tactics", a spokesperson says. "All buyers have the right to conduct independent due diligence before committing to a purchase. "Buyers were informed of the available units and had the opportunity to secure them - no one is ever forced to commit immediately."

The 364-apartment Phoenix development opened in October 2024

"We were first-time buyers and relatively new to the UK, so we weren't really aware of how it worked," says Mr Marini, originally from Brazil. "It was earth-shaking when we found out we should have got a mortgage offer then." After more than a year of building delays, the couple approached lenders and were shocked to find mortgage applications refused. Surveyors cited a range of reasons for devaluing the property, including the location and too many buy-to-let investments. Torsion Group, the developer, says it can't comment on the independently owned agent, but it "expects them to operate at the highest professional standards". "The property was built to the finish specified and all the expected structural, safety and quality standards were delivered within the contractual period," a spokesperson says.

Patience Chinogureyi lost £51,000 in fees, deposits and furniture packs on two flats

"We had really good credit scores, we had enough income to cover the payments, so it was very surprising to us when the mortgage was denied," Mr Marini says. "I can't express how sad, stressful, demeaning even, it feels," says Mrs Marini, originally from Italy. When "off-plan" properties are sold it is "common practice to wait until nearer the completion date before making a mortgage application", says Mundy's Specialist Property Lawyers, one of the agent's recommended solicitors. "The reason is that any mortgage offer issued prior to exchange of contracts would inevitably expire before the completion date and would have to be renewed." Patience Chinogureyi paid £51,000 in fees, deposits and furniture packs on two Phoenix flats as buy-to-let investments. When exchanging contracts, she says she was told a mortgage offer was not needed at that stage, as long as she could finance the properties. Lenders later refused her applications, citing the same property valuation issues. "I've not been able to sleep because it's all I ever think about," she says. "I don't know where to start because I've lost that money - I don't know how long it will take me to work and get it back." North Property Group says buyers are "free to choose their own legal representatives", with a total of 29 independent legal firms advising clients on Phoenix contracts.

Carolyn Barraclough was a cash buyer and fears her flat may not be worth what she originally paid

Carolyn Barraclough successfully bought one of the flats, near the A61, for her son using money from an inheritance, but he never moved in due to building delays. "The agent said she would hold the property for me for an hour, so I got a taxi down to the office," she recalls. "I was told I would need to place a reservation fee immediately because somebody else had already been on the phone - if I left the building it was going to go to them and it was the last one." Ms Barraclough says she was never advised to have the flat valued and is worried she might not be able to sell. "It was obvious that I was new to this type of thing, I've never purchased a property before for an investment other than the house I live in," she says. "I didn't know any of the pitfalls."

Developers say Phoenix is the fourth tallest residential building in Leeds

Offering advice on best practice, Sarah Cookson, director of Switalskis solicitors, says buyers should always gain a mortgage offer before exchanging contracts and paying a deposit - even when buying off-plan. "It is very unusual not to advise a client to do this," she says. "A mortgage offer and valuation is critical - a surveyor would still be able to value what is going to be built. "They would look at the documents and say whether or not it is a good buy." She adds: "You wouldn't buy a car that hasn't got an MOT certificate, why would you buy a house without having it valued?"

Sarah Cookson, director of Switalskis solicitors, advises never to exchange contracts before a mortgage offer is in place

All buyers spoken to by BBC News say they would have obtained mortgage offers before exchanging contracts if they had been advised to do so. North Property Group says: "Buyers were informed that mortgage offers are typically valid for six months, which is standard for off-plan purchases. "Lenders appoint surveyors independently to assess property values, and market conditions have shifted significantly in recent years, affecting mortgage approvals." It adds: "Since 2017, North Property Group has successfully brokered 1,007 sales. "Of those transactions, 857 were off-plan purchases."

A spokesperson for Mundy's Specialist Property Lawyers says: "We are aware that some buyers have unfortunately been unable to complete their purchase of apartments within The Phoenix. "We of course have every sympathy with those buyers and are extremely sorry for the difficulties they have faced. "Nevertheless, it has to be said that we have acted for many clients who have completed their apartment purchase without any particular issues." They add: "We do not accept the suggestion that we failed to give proper legal advice to any buyer on this development or that we failed to explain the risks so far as they relate to property acquisition."

Enrico and Luciana Marini put money down on a flat in Leeds in 2021, only for it later to be devalued.

The homebuyers who lost thousands when their off-plan dream turned sour

More or Less: Behind the Stats

Trump tariffs: All about the deficits

Explaining the maths and economics of the US ‘Liberation Day’ tariffs

Catch up on your favourite BBC radio show from your favourite DJ right here, whenever you like. Listen without limits with BBC Sounds.

More or Less: Behind the Stats - Trump tariffs: All about the deficits - BBC Sounds

Stocks, tariffs and pensions - your questions answered

3 hours ago Share Save Share Save

EPA

Markets are reeling from US President Donald Trump's tariff announcements, but the American leader is standing by his decisions, defending his policies and saying "sometimes you have to take medicine to fix something". Experts answered some of the questions you sent us as the world tries to make sense of the turmoil and wonders how long it will continue. Read their answers below.

How does a stock market index work?

Simon Jack, the BBC's business editor, said the FTSE 100, which represents the 100 biggest companies publicly listed in the UK, were all "put in a big bucket back in 1984" and given a certain weighting in that bucket depending on how big those companies were. The stock market is a reflection of their total value over time. The bigger the company, the more weight it has in the index. For example, an AstraZeneca or an HSBC has more weight than others. It works the same in the US with the S&P500, which is made up of the 500 biggest companies, with an enormous concentration in some names like Apple, Nvidia and Amazon. The stock market tells you how the value of the shares in those companies has changed - with a focus on those biggest names. Generally speaking, it is an indication of what some of our biggest companies are worth, and when they go up or down, it tells you something about the sentiment of whether their profits are likely to rise or fall in the future.

How does a market downturn affect pensions and daily life?

Jack explains that what happens in stock markets is not necessarily the same thing that happens in the economy. They can be linked, but they are not exactly the same. Some people invest directly in shares - and this will definitely affect them. These are some big falls, some of the biggest we have seen in a couple days since pandemic panic gripped the markets back in 2020. The other way that people are exposed to these changes is through their pension funds. Pension fund investing is a long term game. Not all of your money will go into shares - some will go into government bonds, and the closer you get to retirement, the more weighting you will have in things like cash and government bonds, so the less this will affect you. There are two types of pensions: a defined benefit pension - where you get a promised percentage of your salary at retirement - and defined contribution - where your pension pots value will rise and fall with financial markets. Pensions are exposed right now, but pension investing is a long term game. The warning sign flashing here is not the value of your pension pot - it is what is going to happen to the economies in which we all live and work. A lot of people are saying the chance of recession in both the US, UK - and even globally - have gone up a notch, which has implications for things like jobs and wages.

How popular are tariffs in the US?

Bloomberg's politics editor Laura Davison said tariffs, both before last week's announcement and currently, are quite unpopular. The initial numbers for Trump on how he is handling the economy - what people think about his economic policies - are actually quite poor. This is sort of a surprising turn: one of the reasons that Trump beat Kamala Harris in the 2024 election is because voters were perturbed by high prices and what they perceived as a poor economy. But what may actually come to fruition in these tariffs is that prices may increase substantially for US consumers, as essentially all of these overseas goods become far more expensive to purchase. There could be inflation and we could also see an economic downturn, and potentially a recession.

How much of this is about China?

Some think that the whole exercise is about an economic proxy war with China and the entire game is about just trying to level that playing field a little bit, Jack said. But Trump is right in one regard, which is that American markets are much more open to foreign goods than a lot of foreign markets are open to US goods. The UK, for example, puts a 10% tariff on US imported cars, 14% on some kinds of beef, and 8% on other things. So there are barriers both ways. And while Trump says that other countries have been ripping off the US, it is American corporations that have reasonably pursued shareholder value by trying to put their production facilities in the strategically and economically best places. It is the head of American corporations who opened subsidiaries in Ireland, where there is a low tax rate, and put manufacturing in Vietnam or Cambodia. In a way this has been the sort of rational pursuit of maximum profit, a system which has made the US very rich indeed. China is getting very rich indeed as well, and it is certainly moving up the value chain. There is a feeling that the US was very comfortable when China was making cheap sneakers and t-shirts, but when China starts making supercomputers and missiles the US gets a little bit more concerned, and that is one of the reasons you are seeing some of these tensions come to the fore.

Will the markets recover?

Experts answer your questions on how the stock market index works, whether the markets will recover and more.

Stocks, tariffs and pensions - your questions answered

Trump threatens new 50% tariffs on China

50 minutes ago Share Save Emma Haslett Business Reporter Share Save

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Donald Trump has threatened China with an extra tariff of 50% on goods imported into the US if it does not withdraw a countermeasure it announced on Friday. In a post on his social media platform, Truth Social, the US president said he will introduce the extra tariff unless China withdraws its own 34% counter-tariff on American goods, which it announced on Friday. Trump originally imposed a tax of 34% on Chinese imports last Wednesday, as he announced tariffs on dozens of US trading partners. If he does impose the additional 50%, US companies will pay a total rate of 104% on Chinese imports.

In his post on Truth Social, Trump said China had introduced its countermeasure "despite my warning that any country that Retaliates against the U.S. by issuing additional Tariffs... will be immediately met with new and substantially higher Tariffs". The escalating tension between the US and China has increased fears of a global trade war. The tariffs would come as a major blow to China's manufacturers, for whom the US is a key market for exports. Uncertainty around the tariffs led to a turbulent day on global stock markets. European markets closed lower after Asian share indexes nosedived, with Hong Kong's Hang Seng index falling by more than 13%, its biggest one-day fall since 1997.

Negotiations

The US president said he will introduce the extra tariff unless China withdraws its own 34% counter-tariff on American goods.

Donald Trump threatens new 50% tariffs on China

'Sometimes you have to take medicine': Trump defends sweeping tariffs

9 hours ago Share Save Bernd Debusmann Jr Reporting from Air Force One Jack Burgess BBC News Reporting from London Share Save

Reuters

US President Donald Trump has defended sweeping tariffs on imports that sent shockwaves through global stock markets, saying "sometimes you have to take medicine to fix something". Speaking to reporters aboard Air Force One late on Sunday, he said jobs and investment would return to the US to make it "wealthy like never before". Trump's top officials stressed that the tariffs - announced last week - would be implemented as planned, playing down recession fears. Just hours after Trump's comments, stock markets plunged in Asia early on Monday, with Japan's Nikkei 225 dropping by 7.8%, and Hong Kong's Hang Seng losing more than 12%.

On Friday, all three major stock indexes in the US fell more than 5%, while the S&P 500 dropped almost 6% in the worst week for the US stock market since 2020. Saudi Arabia's stock exchange - which trades on Sundays - ended nearly 7% lower, its biggest daily loss since the pandemic, state-owned media said. US banking giant JP Morgan has predicted a 60% chance of a US and global recession following Trump's tariffs announcement.

Reuters Bessent (left) pictured with Trump and Commerce Secretary Howard Lutnick (right) in the Oval Office in February

Speaking aboard the presidential plane on a flight back to Washington DC, Trump said European and Asian countries were "dying to make a deal". He also pushed back against a reporter's inquiry about American consumers' "pain threshold" as fears of steep price increases and a market recession grow. "I think your question is so stupid," he told the reporter. "I don't want anything to go down. But sometimes you have to take medicine to fix something." In a series of TV interviews earlier on Sunday, Trump's top officials also played down recent stock market falls. Treasury Secretary Scott Bessent told NBC's Meet the Press programme that there was "no reason" to expect a recession as a result. "This is an adjustment process," he added. Bessent also argued that Trump had "created maximum leverage for himself, and more than 50 countries have approached the administration about lowering their non-tariff trade barriers, lowering their tariffs, stopping currency manipulation". Meanwhile, Commerce Secretary Howard Lutnick told CBS News that the 10% "baseline" tariff on all imports, which came into effect a day earlier, will definitely "stay in place for days and weeks". Lutnick went on say the steeper reciprocal tariffs were still on track. Higher custom tariffs on roughly 60 countries, dubbed the "worst offenders", are due to come into effect on Wednesday 9 April. When asked about these tariffs, Lutnick said they were coming. "[Trump] announced it and he wasn't kidding," he said. Lutnick also defended tariffs imposed on two tiny Antarctic islands populated only by penguins, saying it was to close "loopholes" for countries such as China to "ship through".

US Treasury Secretary Scott Bessent says there is "no reason" to expect a recession

Elsewhere, Indonesia and Taiwan have said over the weekend that they will not impose retaliatory tariffs after the US announced a 32% levy on imports from both countries. Vietnam's leader, To Lam, has asked Trump to delay a 46% duty on Vietnamese exports to the US by "at least 45 days", according to a letter seen by news agency AFP and the New York Times. However, China announced on Friday that it will impose a 34% tariff on all US imports, beginning on Thursday 10 April.

UK Prime Minister Sir Keir Starmer warned on Saturday that "the world as we knew it has gone". Starmer said the UK government would keep pushing for an economic deal with the US that avoided some of the tariffs. A Downing Street spokesman added Starmer and new Canadian Prime Minister Mark Carney agreed in a phone call that "an all-out trade war is in no-one's interest". On Monday, Israeli Prime Minister Benjamin Netanyahu is expected to meet Trump for trade talks in Washington DC. Netanyahu, speaking to reporters as he boarded a plane-bound for the US, said he would be "the first international leader that is meeting with Trump" since the new tariffs were introduced. He said this showed their "personal connection and the connection between our countries that is so essential in this time".

Reuters Anti-Trump protests were held in dozens of US cities, in part over tariffs

Just hours after Trump's comments, stock markets plunged in Asia early on Monday, with Hong Kong's Hang Seng losing 9.8%.

'Sometimes you have to take medicine': Trump defends sweeping tariffs

Billionaire Trump backer warns of 'economic nuclear winter' over tariffs

2 hours ago Share Save James FitzGerald BBC News Share Save

Getty Images Bill Ackman switched allegiance to Trump before the 2024 presidential election

A billionaire backer of Donald Trump has urged the US president to pause his recently announced trade tariffs, or risk "a self-induced, economic nuclear winter". Amid market turmoil, hedge fund manager Bill Ackman said the president should take three months to allow countries to renegotiate their trading relationships with the US. On Monday, Mr Ackman's warning was echoed by another prominent Wall Street figure, with JPMorgan Chase chairman Jamie Dimon saying that Trump's tariffs risked pushing up prices for Americans. Despite the shockwaves, the American president has defended his new import taxes, saying "sometimes you have to take medicine to fix something".

He says the move will boost his country with new jobs and investment, but economists warn that prices could rise for Americans and spark a trade war. Share prices in Europe and Asia continued to plummet on Monday, as markets react to the sweeping, global tariffs announced by Trump last week. In his post on X on Sunday, Mr Ackman acknowledged the Trump argument that the global trade system had "disadvantaged" the US. But, he wrote, tariffs that Trump had imposed were "massive and disproportionate", and did not distinguish between American friends and enemies. Mr Ackman, the billionaire founder of Pershing Square hedge fund management company, became a high-profile supporter of Trump, a Republican, in July 2024. He had previously backed the rival Democratic Party, and his intervention was seen as an important electoral endorsement from the world of business.

Watch: "Sometimes you have to take medicine to fix something" - Trump defends tariffs

In his announcements last week, Trump unveiled a 10% "baseline" tariff on imports to the US, with higher rates of up to 50% faced by dozens of other countries - including a number of important manufacturing centres in Asia. Numerous countries have vowed to respond, and China has already retaliated with new tariffs of its own on goods imported from the US. Trump had launched an "economic war against the whole world at once" that risked shattering investor confidence in the US, Mr Ackman commented. Mr Ackman said the American leader now had "an opportunity to call a 90-day time out, negotiate and resolve unfair asymmetric tariff deals, and induce trillions of dollars of new investment in our country". His post on Sunday indicated that he felt the ball was back in Trump's court - after an earlier message on X which urged leaders of other countries to "pick up the phone" to make a deal with Trump. As stock markets around the world continue their slump on Monday, the head of banking giant JPMorgan Chase offered his own take, warning of "many uncertainties" around the new tariffs policy. In a letter to shareholders, Mr Dimon said the tariffs will "likely increase inflation and are causing many to consider a greater probability of a recession". "The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse," he wrote. Trump's officials have downplayed the recession risk. The baseline 10% tariff is already in effect, with the higher rates faced by some countries due to come into effect on Wednesday. Speaking aboard the presidential plane on a flight back to Washington DC on Sunday, Trump himself said European and Asian countries were "dying to make a deal".

Bill Ackman says the US president should pause his planned import taxes - or risk shattering investors' confidence.

Billionaire Trump backer warns of 'economic nuclear winter' over tariffs

Stock markets dive as tariffs spark recession fears

2 hours ago Share Save Emma Haslett Business reporter Share Save

Getty Images The FTSE 100 opened more than 5% lower

Stock markets across Europe and Asia plunged on Monday as fears over the global impact of US President Donald Trump's trade tariffs deepened. The FTSE 100 opened more than 5% lower, following its steepest fall in five years on Friday. Germany's Dax plummeted 10% in the first few minutes of trading, before recovering ground, after Asian markets dropped steeply overnight, with Hong Kong's Hang Seng experiencing its fourth-biggest one-day decline ever. US markets were also set to open lower as economists warned that a recession in the country is now looking increasingly likely.

'Medicine'

On Thursday, Trump announced tariffs on the US's trading partners, many of which were steeper than economists had expected. As traders digested the news, US markets experienced their worst week since the beginning of the Covid pandemic in 2020, with more than $5 trillion (£3.9tn) erased from the S&P 500. Economists speculated that may countries would attempt to negotiate deals on the tariffs. But on Sunday night Trump doubled down, telling reporters that "sometimes you have to take medicine to fix something".

Economic hits

Shares in Europe and Asia plunged on Monday as fears over the global impact of US trade tariffs deepen.

Stock markets dive as tariffs spark recession fears

Is the world heading into recession?

US President Donald Trump's tariffs have ignited wildfires across global stock markets, but does that mean we are heading for a recession?

The first thing to stress is that what happens in the stock market is not the same as what happens in the economy - falling share prices do not always mean economic misery ahead.

But sometimes they do.

Very large falls in stock market values, like these, mean there has been a fundamental reappraisal of future profits for the companies that make up the stock markets of the world.

What markets quite reasonably expect is that increased tariffs will mean that costs will rise and profits will fall.

That doesn't mean that a recession is inevitable but the chances are clearly much higher than they were before Trump announced the most severe and wide-ranging tariffs seen in a century.

An economy is defined as being in recession when the total of everything we and the government spend or export shrinks for two successive three-month periods.

Between October and December last year, the UK economy grew a tiny 0.1% and the latest monthly data showed it shrank by the same amount in January.

The first estimate of how the UK economy fared in February will be released this coming Friday.

So, we are a long way off being able to tell whether we have hit that definition.

The US president has rattled stock markets but that doesn't automatically lead to an economic downturn.

Is the world heading into recession?

How PM might tackle impact of Trump tariffs

10 hours ago Share Save Simon Jack Business editor Share Save

EPA

Prime Minister Sir Keir Starmer said on Sunday he was prepared to use industrial policy to "shelter British business from the storm" expected from US President Donald Trump's recent wave of tariffs. A 10% "baseline" tariff on all imports into the US and a 25% tariff on car imports have now come into effect. But what do the prime minister's words mean in practice? The BBC understands there are several options on the table.

Cars

In 2024, the UK's largest export of goods to the US were cars and auto parts, with a value of around £9bn. That industry has been hit by a tariff of 25% which came into force on Thursday. This comes as the industry is struggling to hit the rising requirements on how many of their sales have to be electric year by year. Sir Keir will announce a relaxation of those targets at a speech in the West Midlands on Monday. Under the plans while a general 2030 ban on the sale of cars powered by petrol and diesel will not be moved, some flexibility will be granted on annual requirements until that date. There may also be extra time for makers of commercial petrol and diesel vans to comply. There will also be extra flexibility for smaller volume luxury car makers like Aston Martin and Rolls-Royce to keep making petrol cars beyond the 2030 deadline.

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Anti-dumping safeguards

One fear is that goods that were destined for the US will now be diverted to other markets, including the UK, due to the fact that the US tariffs on some countries mostly exceed the 10% placed on UK goods. In the past the UK and the European Union (EU) have introduced so-called safeguards that allow a certain amount of foreign steel into their market - and if exceeded, tariffs were applied. These safeguards have been eased over time and are expected to be re-imposed or toughened further. The steel example is seen in government as a blueprint that could be copied by other industries to avoid a huge influx of goods which might drive down prices for consumers but undercut domestic UK suppliers at a critical time. The Department for Business and Trade is in active discussions with the relevant regulatory body - the Trade Remedies Authority, which monitors unfair threats to UK industry.

New investment

It is expected that a series of announcements on government investment into UK industry and infrastructure planned for later this year will be brought forward in the coming days and weeks. This would be to reflect the urgency and sensitivity of the situation faced by UK industry.

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Closer ties with other nations

The BBC understands the PM is considering several options to mitigate the impact of US tariffs on the UK.

How Keir Starmer might tackle impact of Donald Trump's tariffs

Rules on UK car firms relaxed ahead of 2030 petrol vehicles ban

Opposition parties said the measures would not be enough to boost the industry, which faces an uncertain period after the US announced tariffs on cars.

However, on Sunday, Transport Secretary Heidi Alexander said that while the government is committed to the 2030 deadline, she would relax regulations which dictate how firms make the switch in order to "protect and create jobs".

A ban on producing new petrol and diesel cars will come into effect in 2030, after ministers reinstated a deadline that had been pushed back by ex-Prime Minister Rishi Sunak.

The government has said it is stepping in to help the British car industry by making the rules on manufacturers going all-electric more flexible.

President Donald Trump has imposed a 25% levy on cars imported to the US, which is a major export market for the UK motor industry.

While plans to phase out petrol and diesel vehicles pre-date the tariffs announcement, the government framed its latest intervention as a way to help car firms grow despite potentially seismic changes to the motor industry.

The government said it had worked with UK car manufacturers to simultaneously "strengthen its commitment to the phase out" while introducing "practical reforms to support industry meet this ambition".

Under the current ­electric vehicle (EV) mandate, manufacturers are at risk of fines of £15,000 per car sold that does not meet the latest emissions standards.

Currently, 28% of new cars sold in the UK this year must be electric, a target that will rise each year until 2030.

But manufacturers will now be given more flexibility to balance the annual targets against each other and avoid fines by selling more EVs in later years of the mandate.

The announcement from the transport ministry said "support for the car industry will be kept under review as the impact of new tariffs become clear".

The ban on sales of new petrol and diesel cars was extended to 2035 under the previous Conservative government, but Labour promised to restore the 2030 deadline in its manifesto for the 2024 election.

Car industry leaders have previously warned that drivers were not switching to electric vehicles at the rate needed to meet the deadline due to the cost of buying the cars privately and a lack of charging point infrastructure.

Writing in the Times newspaper, Prime Minister Sir Keir Starmer said the non-compliance fine will be reduced to £12,000, and people who want to purchase EV's will be supported

"We're putting £2.3 billion towards tax breaks for people buying electric vehicles and improving charging infrastructure," he said.

The changes announced by the government include:

Mandates imposed on car firms as they transition to phasing out petrol and diesel vehicle production will be relaxed to help firms avoid fines

Smaller UK firms like Aston Martin and McLaren are to be allowed to keep making petrol cars beyond the 2030 deadline

Some hybrid vehicles will be able to stay on the market until 2035

Sir Keir said the measures would "boost growth that puts money in working people's pockets" and ensure "home-grown firms" can export UK-made cars worldwide.

But shadow business secretary Andrew Griffith described the measures as "half baked" and repeated Conservative leader Kemi Badenoch's claim that "net zero by 2050 is impossible".

Liberal Democrat transport spokesperson called for "better incentives" for consumers to buy electric vehicles, and said the changes "won't be enough to protect the sector from the impact of Trump's damaging tariffs".

The US is the second largest export market for the UK's car industry, after the European Union.

Coventry-based car manufacturer Jaguar Land Rover announced on Saturday that it will "pause" all shipments in April to the US as it works to "address the new trading terms".

A separate 10% tariff on UK imports came into effect on Saturday, with higher rates in place for some other major economies.

The prime minister says the measures are designed to aid the UK motor industry, which has been hit by Trump's tariffs.

Rules on UK car firms relaxed ahead of 2030 petrol vehicles ban

Tariffs: Why is there a 'bloodbath' on Asian markets?

Major indexes from Shanghai to Tokyo and Sydney to Hong Kong plunged when they opened on Monday

They are also particularly sensitive to the impact of fears that a global trade war could trigger a slowdown or even a recession in the world's biggest economy.

As a region that manufactures so many of the goods sold globally, Asian countries and territories are being hit directly by the tariffs.

Major indexes from Shanghai to Tokyo and Sydney to Hong Kong plunged when they opened on Monday. "It's a bloodbath," one analyst told the BBC.

Asian stock markets are plummeting as the shockwaves from US President Donald Trump's tariffs continue to reverberate around the world.

By midday, Japan's Nikkei 225 benchmark index was down 6%, the ASX 200 in Australia was 4% lower and the Kospi in South Korea was 4.7% lower.

Slumps in mainland China, Hong Kong and Taiwan were exacerbated as investors caught up with the big falls seen in other markets on Friday as they were closed for public holidays.

The Shanghai Composite was down more than 6%, while the Hang Seng and Taiwan Weighted Index plunged by around 10%.

"Tariffs are feeding into expectations around inflation and a recession," said Julia Lee, head of client coverage at FTSE Russell, a subsidiary of the London Stock Exchange Group.

Goldman Sachs now forecasts there is a 45% chance the US will fall into recession in the next 12 months to 45% - up from a previous estimate of 35% - as the investment banking giant lowered its economic growth forecast for the country.

Other Wall Street firms have also revised their recession forecasts in the wake of Trump's tariff announcement. JPMorgan now sees a 60% chance of a US and global economic downturn.

A significant slowdown in the US economy would have major repercussions for Asian exports as the US is such an important market for goods from the region.

"Asia is bearing the brunt of the US tariff hike. While there could be some room for negotiation, a new regime of higher tariffs are here to stay," Qian Wang, Asia Pacific chief economist at investment firm Vanguard.

"This is negative to the global and Asia economy, especially those small open economies, both in the short term and long term."

Countries from Vietnam to Bangladesh have become highly-reliant on the US as an export market.

Trump's announcement last week included a 46% tariff on Vietnam and 37% on Bangladesh.

Several major US brands produce goods in Vietnam, including Nike and Lululemon.

Bangladesh exports $8.4bn (£6.5bn) of garments a year to the US, according to trade body the Bangladesh Garment Manufacturers and Exporters Association.

"Asia is likely to feel a disproportionate brunt of this turmoil because Asia sends more exports to the US than to other markets," said Frank Lavin, former undersecretary for international trade at the US Department of Commerce.

On Friday, the global stock market turmoil deepened, after China hit back at tariffs announced by Trump.

All three major US stock indexes in fell by more than 5%, with the S&P 500 dropping almost 6%, capping the worst week for the US stock market since 2020.

In the UK, the FTSE 100 plunged almost 5% - its steepest fall in five years, while exchanges in Germany and France faced similar declines.

Ms Lee also highlighted that the global stock market rout looks set to continue: "US futures trading lower point to another hard session on Wall Street tonight."

Global stock markets have lost trillions in value since Trump announced sweeping new 10% import taxes on goods from every country, with products from dozens of countries, including key trading partners such as China, the European Union and Vietnam, facing far higher rates.

Major stock indexes from Shanghai to Tokyo and Sydney to Hong Kong plunged when they opened on Monday.

Trump tariffs: Why are Asian markets seeing a 'bloodbath'?

Lloyds accused of failing small firms as it cut lending

2 hours ago Share Save Mitchell Labiak Business reporter, BBC News Share Save

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Lloyds Bank business customers and whistleblowers have accused it of failing small firms as it tried to reduce lending after the financial crash of 2008. Business owners who borrowed from Lloyds around that time have told the BBC their firms collapsed after the bank introduced them to its Business Support Unit (BSU), intended for clients it considered were struggling. A whistleblower has told Panorama there was a "pattern" of "pigeonholing" small businesses as "distressed" when they were "salvageable". Lloyds said it "categorically denied" the allegations and its BSU "supported many thousands of customers".

During the banking crisis of 2008, the government bailed out banks to save them from collapse, including Lloyds which got £20bn of taxpayers' cash. Then Prime Minister Gordon Brown said as a condition of the bailout banks must protect lending to small and medium sized businesses. But over 15 years, the BBC has heard allegations that Lloyds' BSU failed small firms. James Ducker, who sold financial products to businesses for Lloyds in 2009, said "the approach to lending became do not lend. Beyond that, get as much money back that we've lent as possible." He said customers in the BSU were "easy pickings". A whistleblower who worked for a consultancy firm brought in by Lloyds to advise small businesses in the BSU told BBC Panorama that in their experience the companies described by the bank as distressed "probably weren't distressed, they were salvageable. I believe there was a pattern. There's no other way to put it." Wishing to remain anonymous, the whistleblower accused the bank of "planning the administration of these entities in advance of reports that were produced. The business plan was completely ignored. They weren't interested in saving the company." Lloyds said: "These historic allegations have been thoroughly investigated by the group and found to be unsubstantiated. They are categorically denied."

'I'm going to bloody fight and fight'

In 2009, Martin Woolls, a ferry boat captain from Weston-Super-Mare, had a residential mortgage with HSBC and unsecured loans with Lloyds. He had recently bought a new boat to expand his business, which he'd been running since 1981, and agreed to combine all his lending into a commercial mortgage and overdraft with Lloyds – both secured against his home. The overdraft was authorised at an initial rate of 2.75%. However, in the wake of the crash, the rates on Martin's overdraft surged to 16%. They peaked at 26.4% when he exceeded his overdraft limit. Bank of England base rates at the time remained static at 0.5%. "Who the hell in the world can cope with those interest rates? Nobody. No business anywhere can cope with that. It's hideous," he said. Lloyds said Martin's rate rises were "in accordance with the terms" of his agreements and it doesn't accept they "ultimately distressed" his business "or "led to its collapse." By 2016, and with base rates still below 1%, Lloyds called in Martin's debts. His business went under, and the bank is still seeking repossession of his home, something Martin is fighting in court. He said the impact of securing the borrowing against his home wasn't properly explained to him. Lloyds said "repossession is always a last resort" but it is "required in the interests of depositors and shareholders to protect its security when loans are defaulted upon". It said numerous inquiries into Martin's case have found "no evidence of wrongdoing".

Unwanted sale

Keith Elliott borrowed £8.6m from Lloyds in 2006 for his Yorkshire-based car auction business. An internal Lloyds email from July 2008 described Keith's business as "profitable" but struggling short term with cashflow issues as he redeveloped a new site. The bank suggested Keith take on a non-executive director from business consultants PwC. Keith agreed but the consultant though not appointed as a non-exec still advised him to re-organise the finances and apply for a further £2m overdraft. And within a week, introduced Keith to the BSU. However, unbeknown to Keith, PwC was advising Lloyds to sell the business, even though it still belonged to Keith. In August 2008, a partner at PwC emailed Lloyds saying: "looks like an accelerated sale with a big success fee/warrant for the bank to reflect the equity risk you are taking". Keith told the BBC: "The fact of the matter here - was their plan to steal my business behind my back. Yes or no? That's it. That's all we need to know." Keith didn't want to sell the business or let Lloyds take a stake, but by December the bank called in its loans and Keith's business collapsed, with PwC paid to oversee the breakup. His Leeds business was sold for around £4m, despite being valued at £13m just months earlier, with Lloyds taking a 15% stake. Lloyds said there was "nothing deceitful or untoward in the introduction" of PwC and that the consultants it worked with had a "proven track record of saving and developing businesses." It said the BSU was not "designed to generate profit" and in some circumstances an equity stake may be taken with the agreement of customers "to reflect the level of risk taken". It added the insolvency caused it to lose £5.5m and that Keith's personal spending was draining the company of money. PwC said: "Mr Elliott's unsubstantiated allegations have been considered or investigated by multiple authorities, no finding of wrongdoing has been made against PwC or its personnel." Keith said Lloyds described his company as "robust" and said it was wrong to blame its failure on his spending.

'Police backchannel'

Kashif Shabir was a successful property developer who agreed a £3m loan with Lloyds but claims he was pushed by the bank into what he calls a "fire sale" of his assets after the crash. Kashif suspects the BSU had never really been there to support him, describing it as "an abattoir". He turned to Avon and Somerset Police believing he was the victim of a financial crime. Police told him that a review found no evidence of criminality. However, he later discovered that Lloyds had been told he was going to meet with the police and that his case was going to be closed before the meeting had taken place. This was despite police telling him at that meeting that there would be a further review of his case. The Independent Office for Police Conduct (IOPC) found the police had shared confidential information with Lloyds for "no apparent policing purpose", but said it found no evidence of corruption. Avon and Somerset Police denies corruption "in the strongest possible terms". Lloyds said it "went to enormous lengths over many years" to try to get the customers in this article "back on track with their repayments, showing considerable forbearance and understanding". It added: "Whenever complaints have been made … they have been thoroughly investigated" and "no evidence of any wrongdoing has been found."

Business owners have told the BBC their businesses collapsed, blaming the bank's treatment.

Lloyds accused of failing small firms as it reduced its lending

Free school meals to continue during holidays

Herefordshire Council said more than 4,700 pupils would benefit from free school meals over the Easter holidays

A council has committed to continuing to provide free school meals for children over the Easter holidays.

Primary and secondary school pupils in Herefordshire who are entitled to benefits-related free school meals will be given vouchers to cover the cost of lunch during the break from school.

Carole Gandy, from Herefordshire Council, said: "The rise in the cost of living is proving to be very difficult for many people.

"This additional support is really important for families with children that may be struggling financially."

Eligible children in Herefordshire will be given vouchers to buy lunch over the Easter break.

Herefordshire Council makes free school meal pledge for holidays

Boost for carers and pensioners as new tax year starts

2 hours ago Share Save Kevin Peachey Cost of living correspondent Share Save

BBC Stephanie Swann works and cares for her son

Carers can now work for longer without losing a key payment - as the state pension and benefits rise for millions of people. While pensioners are receiving a bigger increase than the current rate of price rises, benefits are going up at a slower rate. Carers are among those receiving a 1.7% increase in their benefits, and they will also be able to earn more from their job while still claiming carer's allowance. The changes come days after a string of household bills increased, including water charges, energy prices and council tax.

Benefit changes

The amount paid in benefits is rising at the same rate as prices, measured by last September's inflation rate. That was 1.7% - slower than the current rate of 2.8%. The standard allowance of universal credit, the most common benefit, for a single person aged under 25 has gone up by £5.30 a month to about £317. For a couple aged over 25, the rise is £10.50 to £628 a month. Other benefits rising by 1.7% include all the main disability benefits, such as personal independence payment, attendance allowance and disability living allowance, as well as carer's allowance. One of those receiving carer's allowance is Stephanie Swann, who lives in Stockport and cares for her six-year-old disabled son, Joseph, who has cerebral palsy. She, like others, will now be able to work more hours without the benefit being taken away. She said the change was "a step in the right direction". "Going to work is really important, it's a sense of identity and purpose but I can only do 11 hours a week or I'll lose the allowance," she said. "The increase means I can probably only do two or three more hours a week, I wouldn't be able to do any more than that because the admin around Joe can be a full-time job." The changes mean: Working carers can earn up to £196 per week after certain deductions, up from £151, while keeping the allowance

The allowance itself will rise to £83.30 per week

An extra 60,000 carers will receive the money by 2029 There remain concerns over how some people have been forced to repay the allowance, after going only slightly over the earnings threshold.

A DWP spokesman said: "We recognise and value the vital contribution made by carers in supporting some of the most vulnerable in society." A new right for additional time off work has also come into force for thousands of families whose babies need to be cared for in neonatal units. The measures will allow eligible parents to take up to 12 weeks of leave, with statutory pay, on top of any other leave they may be entitled to including maternity and paternity leave.

Pension increase

The state pension has now gone up by 4.1%, to match rising wages, under the so-called triple-lock. The increase mean it is worth: £230.25 a week for the full, new flat-rate state pension (for those who reached state pension age after April 2016) - a rise of £472 a year

£176.45 a week for the full, old basic state pension (for those who reached state pension age before April 2016) - a rise of £363 a year In general, you need 35 years of qualifying contributions to get a full state pension. Work and Pensions Secretary Liz Kendall said: "Our ironclad commitment to the triple-lock gives pensioners across the country the certainty and security they need to live a full life in retirement. "We are putting more money in people's pockets and driving up household income." The new tax year does see another freeze in income tax thresholds. This is what is known as fiscal drag. It means that while income tax rates have not risen, the income levels at which they are paid have been frozen, and will continue to be so until 2028. That will draw more people - as they receive a pay rise - into paying higher rates of tax, or being taxed on a larger proportion of their income.

The state pension has risen by 4.1% and carers can work more hours will keeping a key benefit.

Boost for carers and pensioners as new tax year starts

The Global Story

The President’s Path: Trump’s Tariffs

Global markets have been sent into turmoil by Trump’s tariffs…

The Global Story - The President’s Path: Trump’s Tariffs - BBC Sounds

Families learn healthy recipes using a slow cooker

6 hours ago Share Save Share Save

London Borough of Sutton Parents, like Zana, are taught how to cook low-cost, healthy meals

Residents in south London have been learning how to use a slow cooker to dish up healthy meals on a budget for their families. Sutton Council has been providing free lessons at "Slow Cooker Club" in an effort to tackle food poverty in the area. The local authority said it was also using the club to provide helpful advice to lower income and vulnerable residents. Family Hubs and Children's Centres lead Claire Borg, who came up with the idea, said: "I had no idea the course would be so popular."

London Borough of Sutton The four-week course is offered by the council's Family Hubs which help families with practical, social, emotional and financial issues

"The Slow Cooker Club started off as an idea of how we could further support local families in Sutton with the cost of living, isolation and healthy eating," she said. Ms Borg added that the feedback from parents specifically had been "overwhelming".

London Borough of Sutton Course tutor Eugenie Bing Tsang has been teaching locals how to cook healthy food on a budget

Charlie, one of the course students, said: "The course is very informative and the tutors were very helpful and encouraging. "I now feel confident in some staple dishes to cook for my daughter."

The local authority provided the slow cooker classes over the course of four weeks. During the lessons, people were taught how to cook low-cost, healthy meals and they were then given the ingredients to practice at home. Those who took part also received a free slow cooker. Funding for the lessons came from the supermarket chain Sainsbury's as an external community grant.

London Borough of Sutton Sausage hot pot and vegetable curries were among the recipes taught at "Slow Cooker Club"

Ms Borg said she was particularly proud that the course was able to help some mothers in the local community who felt isolated. Now the team is seeking more funding so they can run the course again.

Listen to the best of BBC Radio London on Sounds and follow BBC London on Facebook, X and Instagram. Send your story ideas to hello.bbclondon@bbc.co.uk

Sutton Council has been providing free lessons in an effort to tackle food poverty in the area.

Sutton's slow cooker club teaches families to make healthy meals

Globalisation era has ended, says Treasury minister

Watch: Treasury minister "disappointed" but won't say if he believes government can reduce tariffs

Conservative leader Kemi Badenoch disagreed that globalisation was over and pointed to "great" trading relationships with other countries.

"Globalisation as we've known it for the last couple of decades has come to an end," Jones added, in a BBC interview.

It comes after Prime Minister Sir Keir Starmer suggested in a Sunday Telegraph article he was about to announce state intervention to protect UK firms from the US president's move. The UK was among nations hit with a 10% "baseline" import duty, and negotiations on a trade deal to reduce tariffs are continuing.

Chief Secretary to the Treasury Darren Jones said the era of globalisation has "ended" following Donald Trump's new tariffs.

Trump has turned his back on the foundation of US economic might - the fallout will be messy

UK draws up list of US products it could hit with tariffs

There are fears of a global recession following President Trump's "Liberation Day", when he announced sweeping import taxes, sparking retaliatory action from countries including China and Canada.

The prime minister has said the government "will do everything necessary to protect Britain's national interest" and is "ready to use industrial policy" to help shelter businesses, because "the world as we know it has gone".

Speaking on the BBC's Sunday with Laura Kuenssberg show, Jones was asked whether globalisation - which has resulted in a boom in imports of cheap fashion, electrical goods and other products - was over.

"Yeah it's ended, the prime minister said that himself this morning," he said.

The change meant the UK had to "build out" relationships with allies around the world but also invest in the UK's own economy, Jones said, denying ministers were "scrabbling" for solutions.

He insisted the government was "trying to get ahead of these challenges" , which he said were "why we have to invest in the domestic economy, both for UK businesses, but also our public services... which is why our plan for change is investing in the NHS and skills as well as industrial policy."

Amid reports both elements of the spending review and the industrial strategy could now be brought forward from their expected June publication date, he said Labour had been working on the industrial strategy since it was in opposition.

Pressed on whether they would be brought forward, Jones deferred to Sir Keir's announcement expected in the coming days and laughed when Laura Kuenssberg said "that sounds almost like a yes but you're not allowed to say it to us this morning".

The UK government is continuing its policy of not responding with counter-tariffs, as other countries have done, preferring a "calm" approach focused on a UK-US trade deal.

"We're hoping to do a deal," Jones said, adding on tariffs that "we have a better outcome than other comparable countries as a consequence of our diplomacy".

Conservative leader Kemi Badenoch agreed that retaliatory tariffs were not a solution because they would only harm UK consumers.

However, she told Laura Kuenssberg she did not agree globalisation was over, insisting what was happening was only "fragmentation" and that "we still have a great trading relationship with many other countries".

Badenoch added the Labour government should pick up the deal former Prime Minister Boris Johnson had tried to negotiate with Trump during his previous presidency, which ended in 2020.

Ms Kuenssberg asked whether the deal was "oven-ready", as she had claimed several times, and Badenoch suggested the government "should "pick up where we left off", following former president Joe Biden's decision to dump the deal.

"We had six rounds of negotiations where there were some decisions that were concluded and they can pick that up and take it," she said.

"The most important thing is removing tariffs - the tariffs are going to be disruptive for our businesses...

"That is going to make a whole mess of the tax take that [chancellor] Rachel Reeves thought she was going to be getting in her budget.

"We are in a worse place now because of the decisions that Labour has made and people out there are suffering."

Sir Keir Starmer has suggested there could be state intervention to protect UK business from tariffs introduced by Donald Trump.

Treasury minister Darren Jones says globalisation era over after Trump tariffs

Trump has turned his back on the foundation of US economic might - the fallout will be messy

2 hours ago Share Save Faisal Islam • @faisalislam Economics editor Share Save

Pool/BBC

President Donald Trump has built another wall, and he thinks everyone else is going to pay for it. But his decision to impose sweeping tariffs of at least 10% on almost every product that enters the US is essentially a wall designed to keep work and jobs within it, rather than immigrants out. The height of this wall needs to be put in historical context. It takes the US back a century in terms of protectionism. It catapults the US way above the G7 and G20 nations into levels of customs revenue, associated with Senegal, Mongolia and Kyrgyzstan. What occurred this week was not just the US starting a global trade war, or sparking a rout in stock markets. It was the world's hyper power firmly turning its back on the globalisation process it had championed, and from which it handsomely profited in recent decades. And in so doing, using the equation that underpinned his grand tariff reveal on the Rose Garden's lawns, the White House also turned its back on some fundamentals of both conventional economics and diplomacy.

The great free trade debate

Trump talked a lot about 1913 in his announcement. This was a turning point when the US both created federal income tax and significantly lowered its tariffs. Before this point, from its inception, the US government was funded mainly by tariffs, and was unapologetically protectionist, based on the strategy of its first Treasury Secretary Alexander Hamilton. The basic lesson the White House has taken from this is that high tariffs made America, made it "great" the first time, and also meant that there was no need for a federal income tax. On this side of the Atlantic, underpinning globalisation and free trade are the theories of 19th-Century British economist David Ricardo. In particular, the 1817 Theory of Comparative Advantage. There are equations, but the basics are pretty easy to understand: Individual countries are good at making different things, based on their own natural resources and the ingenuity of their populations. Broadly speaking, the whole world, and the countries within it, are better off, if everyone specialises in what they are best at, and then trades freely.

Reuters The basic lesson the White House has taken from history is that high tariffs made America "great" the first time

Here in Britain this remains a cornerstone of the junction between politics and economics. Most of the world still believes in comparative advantage. It is the intellectual core of globalisation. But the US was never a full convert at the time. The underlying reluctance of the US never disappeared. And this week's manifestation of that was the imaginative equation created by the US Trade Representative to generate the numbers on Trump's big board.

The rationale behind 'reciprocal' tariffs

It is worth unpacking the rationale for these so-called "reciprocal" tariffs. The numbers bear little resemblance to the published tariff rates in those countries. The White House said adjustments had been made to account for red tape and currency manipulation. A closer look at the, at-first, complicated looking equation revealed it was simply a measure of the size of that country's goods trade surplus with the US. They took the size of the trade deficit and divided it by the imports. In the hour before the press conference a senior White House official explained it quite openly. "These tariffs are customised to each country, calculated by the Council of Economic Advisers… The model they use is based on the concept the trade deficit that we have is the sum of all the unfair trade practices, the sum of all cheating." This is really important. According to the White House, the act of selling more goods to the US than the US sells to you, is by definition "cheating" and is deserving of a tariff that is calculated to correct that imbalance.

Shutterstock The long-term aim is to get the US $1.2 trillion trade deficit down to zero

This is why the surreal stories about the US tariffing rarely visited islands only inhabited by penguins matter. It reveals the actual method. The long-term aim, and the target of the policy, is to get the US $1.2 trillion trade deficit and the largest country deficits within that down to zero. The equation was simplistically designed to target those countries with surpluses, not those with recognisable quantifiable trade barriers. It targeted poor countries, emerging economies and tiny irrelevant islets based on that data. While these two different factors overlap, they are not the same thing. There are many reasons why some countries have surpluses, and some have deficits. There is no inherent reason why these numbers should be zero. Different countries are better at making different products, and have different natural and human resources. This is the very basis of trade. The US appears no longer to believe in this. Indeed if the same argument was applied solely to trade in services, the US has a $280bn (£216bn) surplus in areas such as financial services and social media tech. Yet services trade was excluded from all the White House calculations.

'China shock' and the ripple effect

There is something bigger here. As the US Vice President JD Vance said in a speech last month, globalisation has failed in the eyes of this administration because the idea was that "rich countries would move further up the value chain, while the poor countries made the simpler things". That has not panned out, especially in the case of China, so the US is moving decisively away from this world. For the US, it is not David Ricardo who matters, it is David Autor, the Massachusetts Institute of Technology (MIT) economist and the coiner of the term "China shock". In 2001, as the world was distracted by the aftermath of 9/11, China joined the World Trade Organisation (WTO), having relatively free access to US markets, and so transforming the global economy. Living standards, growth, profits and stock markets boomed in the US as China's workforce migrated from the rural fields to the coastal factories to produce exports more cheaply for US consumers. It was a classic example of the functioning of "comparative advantage". China generated trillions of dollars, much of which was reinvested in the US, in the form of its government bonds, helping keep interest rates down.

Getty Images President Trump's characterisation of the past half century of freer trade as having "raped and pillaged" the US doesn't reflect the overall picture, says Faisal Islam

Everyone was a winner. Well not quite. Essentially US consumers en masse got richer with cheaper goods, but the quid pro quo was a profound loss of manufacturing to East Asia. Autor's calculation was that by 2011, this "China shock" saw the loss of one million US manufacturing jobs, and 2.4 million jobs overall. These hits were geographically concentrated in the Rust Belt and the south. The trade shock impact on lost jobs and wages was remarkably persistent. Autor further updated his analysis last year and found that while the Trump administration's first term dabble with tariff protection had little net economic impact, it did loosen Democrat support in affected areas, and boosted support for Trump in the 2020 Presidential election.

Fast forward to this week, and the array of union car workers and oil and gas workers celebrating the tariffs in the White House. So the promise is that these jobs will return, not just to the Rust Belt, but across the US. This is indeed likely to some degree. The President's clear message to foreign companies is to avoid the tariffs by moving your factories. The carrots offered by Biden followed by the stick from Trump could well lead to material progress on this. But the President's characterisation of the past half century of freer trade as having "raped and pillaged" the US obviously doesn't reflect the overall picture, even if it has not worked for specific regions, sectors or demographics. The US service sector thrived, dominating the world from Wall Street and Silicon Valley. US consumer brands used hyper-efficient supply chains stretching into China and East Asia to make incredible profits selling their aspirational American products everywhere. The US economy did very well indeed. The problem, simply, was that it was not evenly distributed among sectors. And what the US lacked was levels of redistribution and adaptation to spread that wealth across the country. This reflects America's political choices.

The first social media trade war

Now, as the US chooses to reshore its manufacturing with a sudden jolt of protectionism, other countries also have choices as to whether to support the flows of capital and trade that have made the US rich. The world's consumers have choices. It is little wonder major blue chip American companies, which have built cash machines on hyper-efficient East Asian supply chains producing cheaply and then selling to the whole world based on their attractive aspirational brands, have a big problem. Their share prices are particularly badly affected because the president has both decimated their supply chain strategies, and also risks greatly impairing their brand image amongst global consumers.

Shutterstock Globalisation has failed, according to the current Trump administration

Ultimately, this is the first social media trade war. The experience of Tesla's sale slump and Canada's backlash against US goods may prove contagious. That would be as powerful as any counter-tariff. These countries that bet on being the workshops for US consumers have choices over trade too. New alliances will form and intensify that seek to cut out an erratic US. The President's sensitivity to this was apparent when he threatened to increase tariffs if the EU and Canada joined forces over retaliation. This would be the nightmare scenario. In the game theory of trade wars, credibility does matter. The US has unrivalled military and technological might, which helps. But to transform the global trading system using an arbitrary formula, that throws up transparent absurdities, even without the penguins, is likely to encourage the other side to resist. This is especially the case when the rest of the world thinks that the loaded gun that the President is holding is being aimed at his own foot. The stock market fell most in the US. Inflation will go up most in the US. It is Wall Street now calculating a more-than-evens chance of a recession in the US. Perhaps there is some substance to the theory that the real objective here is to weaken the dollar and lower US borrowing costs. For now, the US is checking out of the global trade system it created. It can continue without it. But the transition is going to be very messy indeed.

What made the US step back from the system that it profited handsomely from for decades?

Trump has turned his back on the foundation of US economic might

Jaguar Land Rover to pause US shipments over tariffs

In a statement, a Jaguar Land Rover spokesperson said the company was "taking some short-term actions including a shipment pause in April, as we develop our mid to longer-term plans".

The US is the second largest export market for the UK's car industry, after the European Union.

A 25% levy on car imports came into force on Thursday, one of several measures announced by US President Donald Trump which have sent shockwaves through global supply chains.

Jaguar Land Rover has announced it will "pause" all shipments to the US as it works to "address the new trading terms" after tariffs were imposed earlier this week.

The Coventry-based car manufacturer - which also has sites in Solihull and Wolverhampton - said the US is an "important market for JLR's luxury brands".

More cars are exported to the US from the UK than any other good. In a 12-month period up to the end of the third quarter of 2024, the trade was worth £8.3bn, according, external to the UK trade department.

An initial wave of tariffs on cars came into effect from 3 April, with import taxes on auto parts due to follow next month.

A separate 10% tariff will be imposed on all other UK imports, with higher rates in place for some other major economies.

Global stock markets have incurred heavy losses in recent days as firms grapple with how to adapt to the new trading environment.

The FTSE 100 - which measures the performance of the 100 leading firms listed on the London Stock Exchange - plummeted by 4.9% on Friday, its steepest fall since the start of the pandemic.

Exchanges in Germany and France also saw similar declines.

Sir Keir Starmer has said the UK will take a calm approach to the trade tariffs and has ruled out "jumping into a trade war".

The prime minister spoke to his French counterpart Emmanuel Macron on Saturday, the first of several discussions planned between Sir Keir and European leaders over the weekend.

Downing Street said Sir Keir and Macron had agreed "a trade war was in nobody's interest" but "nothing should be off the table".

On Thursday, the prime minister warned the global economy was "entering a new era" and said there would "clearly" be an impact on the UK.

The government is consulting on products it could impose retaliatory measures on but talks between UK and US officials continue on a possible trade deal which the British governments hopes would see tariffs relaxed.

Sir Keir is holding talks with other European leaders to discuss how to respond to the White House's trade moves.

The British firm say no vehicles will be shipped in April as it processes the impact of Donald Trump's tariffs.

Jaguar Land Rover to pause US shipments over tariffs

Home buyers in England and Northern Ireland will pay more stamp duty after 1 April, when two key thresholds are reduced.

Mortgage brokers have reported some potential buyers pulled out of deals because they could not complete before the end of March.

Home buyers in England and Northern Ireland will pay more stamp duty from 1 April when thresholds rise.

Stamp duty: What is it, how much is it and how is it changing?

Sliced Bread

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Tariffs have shaken the markets - how worried should we be?

16 hours ago Share Save Simon Jack Business editor Share Save

Getty Images

As stock markets continue to tumble after the US imposition of sweeping and swingeing tariffs, many are asking does this qualify as a stock market "crash" and what that could mean for them. The word crash has been used sparingly over the decades and is usually reserved for a fall of over 20% from a recent peak in a day, or over the course of a couple of days. On 19 October, 1987 - also known as Black Monday - the US stock market lost 23% of its value in a single day, and other stock markets had similar falls. The UK FTSE index fell 23% over two days – partly because it closes earlier than New York, and so it often plays catch up with whatever happens in the US the next morning. That was most definitely a crash. In 1929, the US stock market lost over 20% of its value in two days - and 50% within three weeks. That was the famous Wall Street Crash that ushered in the great depression of the 1930s. By comparison, the US stock market has lost around 17% of its value from its peak in February and is now down 2% from where it was this time last year. Follow live updates Nevertheless, these are the biggest and quickest declines we have seen in world markets since they were gripped by the panic of Covid-19 in early 2020. A decline of 20% from a peak is considered a "bear market" - a description of a market that appears to be more likely to go down than go up. We are very close to that description right now.

How does it affect you?

While many people own stocks and shares directly, most people's exposure to stock markets come through their pension plans. There are two types – defined benefit schemes which guarantee a fixed pension income, and defined contribution where your pension pot rises and falls with financial markets. That may sound like defined contribution plans are very vulnerable to this sell off – but not all of your contributions go into shares. Much of the money goes into safer investments such as government bonds. These tend to increase in value when stock markets fall as they are seen as a "safe haven" along with other assets such as gold. That is exactly what has happened here. Government bonds have risen in value and that can offset some or all of the fall in shares depending on how your pension savings are allocated. The closer to retirement you are, the higher percentage of your pension pot is likely to be invested in bonds - so the less affected you will be. There have been many falls like this in the decades since the Wall Street Crash but in the long term, shares have turned out to be a good investment – and pension savings is a long term game.

So, does it matter?

Workers are right to fear for their pensions, but the greater worry is the here and now - the economy they live in.

Donald Trump's tariffs have shaken the markets

Starmer's response to Trump tariffs is both to slow down and go faster

30 minutes ago Share Save Laura Kuenssberg • @bbclaurak Presenter, Sunday with Laura Kuenssberg Share Save

BBC

Prime Minister Sir Keir Starmer watched in his flat. Chancellor Rachel Reeves saw it in her study. The Business Secretary Jonathan Reynolds, accompanied by staff and pizza, took in President Donald Trump's big tariffs reveal on Wednesday from his office in Old Admiralty Arch, from where the British Navy was directed to protect and control trade on the high seas in days gone by. Ministers can only dream of having that kind of power now, as the UK watches on in growing horror at the bust-up between the US and China. "Sometimes people don't realise they are living through a moment of history," a cabinet minister notes, as Trump and Chinese President Xi Jinping square up to each other, and stock markets plunge. Trump has slapped a 10% tariff on all nations – including the UK – for imports into the US, and much higher rates on some countries, including China, which has responded with fresh tariffs of its own. So what's happening in Whitehall right now to try to limit the harm to the UK, perhaps by making a deal with the US, and make the most of any opportunities?

The PM is spending another dramatic weekend working the phones from the peace of his country pad, Chequers. So far, the other calls that could really matter, from US negotiators, have not yet resumed. Trump dangled a possible trade deal that might exempt the UK from some of the costs from tariffs during the pair's chummy White House press conference in February. There have been significant negotiations since then by a team of around 20, led out of No 10 by Michael Ellam, the Treasury and banking veteran, and the PM's business adviser Varun Chandra alongside the business secretary. Those talks included ideas about the UK watering down rules on electric vehicles, possible changes to a tax on tech companies ("space to talk about it", one minister says) and changes to online safety rules ("not happening", says a government source).

PA Media Sir Keir Starmer told business leaders in Downing Street that Trump's tariffs will have a serious impact on the UK and global economy

But as the US government prepared for its announcements on Wednesday, talks about a deal ground to a halt. Now, after the announcement, the "ball is in their court", said one government source involved, waiting to hear if, in the chaos of Trump's new tariff world, the White House can find time and energy to push a deal with the UK. "We're expecting to hear from them any moment," one of those involved hopes. The risk, in the visible turmoil, is that any economic agreement could become a case of: don't call us, we'll call you. We'll be asking Darren Jones, the Treasury Minister, about it when he join us in the studio tomorrow. If a deal is done, however, do not expect an all-singing all-dancing arrangement. Instead, "it would be a basic agreement on principles – rather than a super detailed trade agreement", says a government source, contrasting these "quick and dirty" moves to long-running negotiations with India ("we're on our 15th chapter with them!"). Uncertainty around the talks, and the limited nature of what a deal could achieve in any case, means No 10 is "not sitting here waiting for it – it's not the basket where all our eggs are".

PA Media Business Secretary Jonathan Reynolds says he is speaking to UK firms about the impact of the new 10% tariffs on British exports to the US

For weeks the government told us they were preparing for all kinds of scenarios. A secret cabinet committee was considering how the UK might react if Trump's tariffs materialised. But now they are here, the actual response is… not to respond, and to spend four weeks asking businesses if they would like the government to respond later on. That is not just Whitehall dither: at this stage, there seems to be almost zero appetite among ministers to join in with the rounds of tariffs between the US, China, and perhaps the EU in coming days. One Whitehall figure working with business says "there has not been a single voice in business, big or small, saying this is the wrong strategy". Ministers' approach to get businesses on board, like when Sir Keir invited dozens of big wigs to No 10 the morning after Trump's tariff announcement, is in part because of the anger when the government increased National Insurance contributions. "The really calm reaction," one source says, "is because we got people into the headspace where tariffs were going to happen – one of the businesses said they were being borderline stalked, we've been trying to persuade business to trust the process." The government is in no rush, and has no enthusiasm to introduce its own new tariffs, and for now at least, demands on them to do so are muted. According to a minister: "Most people have considerable numbers of jobs in their constituencies on the line – even in cabinet there might have been some question marks but there weren't this week." And they joke that the Lib Dems, who are calling for tariffs in retaliation, "keep demanding a trade war but I don't think they'll lead the nation". Conservative leader Kemi Badenoch, who also does not want extra tariffs, will be on tomorrow's show too.

Getty Images The US will impose at least a 10% tariff on all imports, with even higher rates for certain countries

But just as the government is going slow on hitting back, they are cracking heads to crack on with their existing plans faster. This isn't all about Trump. I understand the chancellor is looking at whether any of the money announced in the government's vital Spending Review can be brought forward from June. If government departments are able to finalise their deals, can that be sorted and made public as soon as possible? There are discussions too about whether it's possible to speed up the long waited-for Industrial Strategy – a plan to get investment into the UK pencilled in for June, but could it be brought forward? A decision hasn't been made but the prime minister is again, his team indicate, trying to use the jeopardy around the world as an impetus to push the government machine harder. "We have to run quickly towards this," a government source says – and the chancellor is looking at it this weekend.

Sign up for the Off Air with Laura K newsletter to get Laura Kuenssberg's expert insight and insider stories every week, emailed directly to you.

You might feel, haven't I heard this before? You'd be right. Since the start of the year, the prime minister and the chancellor have both repeatedly said the government has to go faster, work harder. So why after years in opposition weren't Starmer's team ready to go with all of these changes when they got into office? For a government that promised to be radical, its plans have not always been forthcoming. You may not fancy the kind of radicalism we're seeing out of the White House, but radical it certainly is. To compete, the UK may need to be that too. It is ludicrous to imagine the PM is "very happy" that the UK has been hit with tariffs as Trump suggested – "artistic licence", a government source remarked. No British action can completely insulate our economy from disruption abroad. But the government's own actions do matter, and this could be a defining moment. While there's been no lack of trying to soften the blows for the UK, the government's hopes have been dashed already. First, ministers believed the UK could escape tariffs, then they said they were prepared in case, then disappointed when they arrived. As Sir Keir spends another weekend on the phone, and officials hope the phone rings, the government doesn't know what they will be able to say next.

What's happening in Whitehall to try to limit the harm to the UK, perhaps by making a deal with the US, and make the most of any opportunities?

Laura Kuenssberg: After Trump tariffs, Sir Keir Starmer is to slow down and go faster

The Everyday Hustle

with Shani Dhanda: Property

Property expert Saj Hussain answers all the basics on property investment.

The Everyday Hustle - with Shani Dhanda: Property - BBC Sounds

Trump extends deadline to keep TikTok running in US

4 hours ago Share Save Jessica Murphy BBC News, Toronto Share Save

Getty Images

US President Donald Trump has granted TikTok a second 75-day extension to comply with a law that requires the hugely popular video app to either sell its US operation or face a ban in the country. "We do not want TikTok to 'go dark'," Trump wrote on Truth Social. "We look forward to working with TikTok and China to close the Deal." The platform is currently owned by Chinese company ByteDance. Trump's first extension was granted after he took office in January and was set to expire on Saturday. The social media platform, which says it has more than 170 million users in the US, must close in the US under a law passed by Congress - unless a buyer is found.

In a statement on Friday, ByteDance said it had been in discussion with the Trump administration, but "an agreement has not been executed". "There are key matters to be resolved. Any agreement will be subject to approval under Chinese law," a spokesperson said. Former US President Joe Biden's administration had argued that TikTok could be used by China as a tool for spying and political manipulation. Congress passed a bipartisan law last year that gave ByteDance six months to sell its controlling stake in TikTok or see the app blocked in the US. Opponents of a ban have cited freedom of speech as a reason for keeping the platform open. The new extension comes as the Trump administration tries to broker a deal to bring the social media platform under American ownership, and keep the popular app running in the US. "The Deal requires more work to ensure all necessary approvals are signed," Trump wrote on his Truth Social platform on Friday. Who might buy TikTok as ban deadline looms? Amazon joins bidders A TikTok deal was reportedly nearly finalised on Wednesday, but fell apart after Trump on the same day announced sweeping global tariffs, including on China. ByteDance representatives contacted the White House to inform them China would no longer approve the deal unless negotiations on the tariffs could take place, a source familiar with the deal told CBS News, the BBC's US partner. The unnamed source said the plan had been for Trump to sign an order initiating a 120-day period for closing the deal, allowing time to finish paperwork and secure financing. The agreement had won approval from existing investors, new investors, ByteDance, and the US government, but China backed out once Trump imposed the global import taxes, CBS reports. The Chinese embassy in Washington DC said in a statement that it "opposed practices that violate the basic principles of the market economy".

Watch: Can young Americans live without TikTok?

The president has granted the app a second 75-day extension to comply with a law that requires it to either sell its US assets or face a ban.

Trump extends deadline to keep TikTok running in US

How might tariffs change the price of Nike's iconic trainers?

3 hours ago Share Save Annabelle Liang Business reporter Reporting from Singapore Share Save

Alamy

The Nike Air Jordan 1 is, in some ways, the iconic US shoe. It's a popular sneaker line by a large American brand, created four decades ago for homegrown basketball legend Michael Jordan. But although Nike sells most of its products in the US, almost all of its shoes are made in Asia – a region targeted by President Donald Trump's tariffs salvo against foreign countries he accuses of "ripping off" Americans. Nike's shares fell 14% the day after the tariffs announcement, on fears over the impact they could have on the company's supply chain. So what will all this mean for the price of Nike's shoe? It depends on how much of the cost increase Nike decides to pass on to customers, if any, and how long they think the tariffs will actually be in place for.

'Competitive industry'

Goods from Vietnam, Indonesia and China face some of the heaviest US import taxes - between 32% to 54%. Hopes remain that Trump might be willing to negotiate those rates lower. On Friday, he said he had had a "very productive" call with the leader of Vietnam, helping Nike shares to recover some ground after their steep Thursday falls. But most analysts think the firm's prices will have to go up. Swiss bank UBS estimates that there will be a 10% to 12% increase in the prices of goods that come from Vietnam - where Nike produces half of its shoes. Meanwhile, Indonesia and China account for almost all of the balance of its shoe production. "Our view is that, given how extensive the list of tariffs is, the industry will realize there are few ways to mitigate the impact in the medium term other than by raising prices," UBS analyst Jay Sole said in a note.

David Swartz, senior equity analyst at Morningstar, agrees that price rises are likely but says any large price increase would reduce demand. "This is a very competitive industry. My guess is that it would be difficult for Nike to raise prices by much more than 10-15%. I don't think it could offset most of the tariff," he says. Many other western brands such as H&M, Adidas, Gap and Lululemon will be facing the same predicament. Nike is already facing a tight bottom line. It had around $51bn (£39.6bn) in sales in its most recent fiscal year. The cost of making products, including shipping, third-party profits and warehouse fees, consumed only about 55% of revenue, giving it a healthy gross profit margin of more than 40%. But that profit gets whittled away once you add in the cost of other business operations. A third of its revenue, for example, is consumed by selling and administrative expense. By the time you factor in interest and taxes, Nike's profit margin has shrunk to roughly 11%. That's across all its products, as they don't break down costs separately for its different items. Rahul Cee, who set up the running shoe review website Sole Review, says there are other ways Nike could keep retail prices low. Mr Cee, who trained as a footwear designer and worked for Nike and Vans in India, says one way could be to downgrade the level of tech in the shoe. "So instead of using high-performance midsole foams and construction, stick to injection moulded EVA (ethylene-vinyl acetate)," he says. Another option would be instead of bringing out a new design every one to two years, to refresh the design cycle every three to four years.

Reuters Nike relies heavily on US consumers

Things could change fast

Simeon Siegel, managing director at BMO Capital Markets, says most companies were looking at Wednesday's announcement as "still far from the final conclusion". "I don't think that many people believe that those numbers are etched in stone just yet," he says. Theoretically, Nike is such a big brand that it should be able to put up prices without it hitting their sales, he says, but adds: "Do they have it right now is the question and do they have it across their product offering is another?" Even before the announcement, Nike was facing a slump in sales that had curbed its ability to command full price for its shoes. Finance chief Matthew Friend has also cited tariffs as an example of developments that were affecting consumer confidence. And Nike relies heavily on US consumers, with the market contributing to roughly $21.5bn of its sales - almost everything it sells in its largest market of North America. Sentiment in the US is a "significant concern" for Nike as it directly affects demand for its footwear, says Sheng Lu, a professor of fashion and apparel studies at the University of Delaware.

But ultimately he says firms may be forced to pass the cost of the levies on to consumers. "Nike is very likely to raise prices if the tariff war persists. There is no way for brands to absorb a 30% to 50% increase in sourcing costs." He adds: "How US trading partners react against the reciprocal tariff policy will also have a major impact." China has already hit back with a 34% tariff of its own. Part of the rationale behind Trump's tariff policy is because he wants more companies to manufacture their goods in the US. However, Prof Lu does not see Nike, or other companies, significantly reshaping its supply chain any time soon "due to the complexity involved in footwear manufacturing". That includes the time needed to "consider a long list of factors when deciding where to source their products - quality, costs, speed to market and various social and environmental compliance risks". Matt Powers from the Powers Advisory Group says the lack of American textile mills will make it "difficult and expensive [for Nike] to pivot production back to the US". Mr Powers added: "This transition, if pursued, would take years and require significant investment." Nike did not respond to BBC requests for comment for this article. We also contacted 30 suppliers in Asia but none responded.

What impact will the introduction of hefty tariffs on countries in Asia have on Nike's iconic US shoe?

What Trump tariffs mean to Nike's Air Jordan 1s

Spain tackles housing 'social emergency' as rents double in a decade

3 hours ago Share Save Guy Hedgecoe Business reporter Reporting from Madrid Share Save

BBC Blanca Castro, who rents an apartment in central Madrid, says she is being forced out by her landlord

Blanca Castro puts on a builder's helmet before opening the door to her kitchen. Inside it, the ceiling has a large hole that is dripping water and it looks as if it could collapse at any moment. Because the kitchen is unusable, Blanca has to wash her dishes in the bathtub, and she has improvised a cooking area with a gas camping stove in a corner of her living room. Many of her fellow tenants in this apartment block near Madrid's Atocha railway station have similar problems. They say the company that owns the building has stopped responding to requests for basic maintenance in recent months, since informing them that it will not renew their rental contracts. "The current rental bubble is encouraging a lot of big owners to do what they are doing here," says Blanca. "Which is to get rid of the current tenants who have been here a long time, in order to have short-term tourist flats, or simply to hike up the rent."

Blanca and her fellow tenants have vowed to stay in the building despite what they see as efforts to push them out by the owners, who were not available for comment for this article. The tenancy contracts last five years, during which time rent is fixed, but this area of central Madrid has seen housing costs soar in recent years. "For another home like this [in this area], I'd have to pay double or more what I'm paying now," says Blanca. "It's not viable." She and her neighbours are among millions of Spaniards who are suffering the consequences of a housing crisis caused by spiralling rental costs. While salaries have increased by around 20% over the past decade, the average rental in Spain has doubled during the same period. There has been an 11% increase over the last year alone, according to figures provided by property portal Idealista, and housing has become Spaniards' biggest worry. It's also generating anger, with Spaniards taking to the streets to demand action from the authorities to make housing more affordable. On Saturday, 5 April thousands of people are expected to protest in Madrid and dozens of other cities.

Blanca Castro says that the owner of her apartment building has stopped doing any maintenance work

A report by Spain's central bank found that nearly 40% of families who rent now spend more than 40% of their income on their accommodation. "The current problem is a huge imbalance between supply and demand," says Juan Villén, of Idealista. "Demand is very good, the economy is growing a lot, but supply is dwindling very fast." Mr Villén offers the example of Barcelona, where rental increases have become notorious. Whereas nine families were competing to rent each property in the city five years ago, that number has risen to 54. Rental costs during that time have increased by 60%, he adds. "We need to build more properties," says Mr Villén. "And on the rental side we need more people willing to rent their properties, or willing to buy properties, refurbish them and put them on the rental market."

The central government has described the situation as "a social emergency" and agrees that a lack of supply is driving the crisis. Last year, the Housing Ministry estimated that the country needs between 600,000 and one million new homes over the next four years in order to meet demand. This need for more housing has been pushed up in part by the arrival of immigrants who have joined the workforce and are helping drive Spain's economic growth. The ministry also pointed to a lack of social housing, which at 3.4% of total supply, is among the lowest in Europe. In 2007, at the height of a property-ownership bubble, more than 600,000 homes were built in Spain. But high building costs, lack of available land and a shortage of manpower have all been factors in restricting construction in recent years, with just under 100,000 homes completed in 2024. The government has taken measures to incentivise construction, apportioning land for the building of affordable homes, while trying to ensure that public housing does not end up in the private market, which has been a problem in the past.

Getty Images The Spanish government says that new homes are needed to keep up with demand

But the Socialist prime minister, Pedro Sánchez, has also expressed a willingness to intervene in the market in order to bring rental prices under control. At a recent event to mark the opening of 218 low-rent flats in the southern city of Seville, he declared that Spaniards "want us to act, they want the housing market to operate according to the law of reason, of social justice, not the law of the jungle; they want to ensure that vulture funds and speculators are not doing whatever they like". The central government and a number of local administrations have identified short-term tourist accommodation as part of the problem. Last year, the Canary Islands, the Balearic Islands and several cities on the mainland saw protests by locals against surging tourist numbers, with their impact on rental costs the main complaint. Several city halls have responded by announcing plans to restrict the granting of tourist-flat permits, while Barcelona is going further, revoking the licences of all of the city's 10,000 or so registered short-term apartments by 2028. The Sánchez government has also pushed through parliament a housing law, which includes a cap on rentals in so-called "high-tension" areas where prices are climbing out of control. Political resistance has meant that the legislation is so far only being implemented in the northern regions of the Basque Country, Navarre and Catalonia, and its success is open to debate. The Socialist-led regional and central governments have pointed to a 3.7% drop in rental costs in "high-tension" areas of Catalonia since the cap's introduction there a year ago, with Barcelona seeing a decrease of 6.4%. However, critics warn that the rental cap has spooked owners and caused thousands of properties to be withdrawn from the market.

Getty Images Protests have taken place in Spain this year against high rental prices and home evictions

"On the supply side, the problem is that all measures taken by the local or national governments are going against landlords," says Mr Villén. "Even people that were doing build-to-rent new properties have been selling their properties because they don't want to get into the rental market." Another initiative proposed by the central government which has stirred up debate is a tax of up to 100% on properties bought by non-residents from outside the EU, on the grounds that such homes are often barely inhabited. This is a measure that, if rolled out, would heavily affect British buyers. The conservative opposition has accused the government of being too heavy-handed with its approach. However, as public anger builds over this issue, there are many others who would like the country's leaders to act much more stridently.

The Spanish government is moving to make renting more affordable and boost the supply of homes.

Spain tackles housing 'social emergency' as rents double

Your Voice, Your BBC News

What do you want the BBC to cover? Nicky Campbell found out on 5 Live

108 mins

Trump tariffs trigger steepest US stocks drop since 2020 as China, EU vow to hit back

Trump Tariffs Trigger Stock Market Tumble

The BBCs team of experts answer your questions on Trumps new tariffs

How Will Trump's Tariffs Impact You?

'We can't afford to run our independent business'

5 hours ago Share Save Gavin Kermack BBC News, West Midlands Elliott Webb BBC Hereford & Worcester Share Save

No Frickin Chicken Paddy Kelly and Hana Hughes said they took the decision to close "with a heavy heart"

The owners of a popular vegan food outlet say they have been left with no choice but to shutter the business because of the spiralling cost of living. No Frickin Chicken started out in April 2021 as a food truck visiting markets and festivals before opening a diner in St John's, Worcester, a year later. But, said the married owners Paddy Kelly and Hana Hughes: "Food prices continue to soar, rent remains high, and the expenses of maintaining the trailer keep adding up." The government said it was working to stabilise public finances and was "focused on creating opportunities for businesses".

No Frickin Chicken No Frickin Chicken opened its diner in 2022, a year after the launch of the food truck business

A number of bills have risen or are due to rise in April, which include water, energy, council tax and telecoms. The minimum wage has also increased from £11.44 an hour to £12.21, and from Sunday, the amount of National Insurance (NI) paid by employers will rise, too. "It's great that they've increased the minimum wage because people should be paid more, and food costs more," said Mr Kelly. "But there should also, in my eyes, be some support for small businesses because they're the ones that can't absorb that as well." The couple said equipment breaking down, including two vans - one of which resulted in a £10,000 repair bill - had contributed to the decision. "Unfortunately, the rising costs of running an independent business have caught up with us," they said. Mr Kelly added: "If everyone's struggling for money, which they are with the cost of living crisis... I think it's 5% of people in England who are vegan, so if everyone's spending less, then there's less money to go around. "It's going to be harder if you're appealing to less people. "There definitely needs to be change from government. All sorts of businesses, whether they're established or not, are just closing down all over the place."

No Frickin Chicken The food truck sold plant-based products at markets and festivals across the country

But Mr Kelly said he expected the couple would likely have another crack at running a business in the future. "We've had a lot of people reaching out with fantastic messages, people that have had our food at festivals or at our diner, and how much they've loved it. We feel like we're a pretty good brand, and people love the name and love the food. "And we're really thankful for all the amazing customers and staff." A government spokesperson said: "We are a pro-business government, and we know the vital importance of small businesses to our economy. "We are now focused on creating opportunities for businesses to compete and access the finance they need to scale, export and break into new markets."

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Paddy Kelly and Hana Hughes say rising costs have forced them to close their diner and food truck.

Worcester couple close vegan business because of cost of living

Stocks slump as China retaliates to Trump tariffs

22 minutes ago Share Save Tom Espiner Business reporter, BBC News Share Save

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European markets have slumped further after China hit back at US import taxes with retaliatory tariffs of its own. The UK's FTSE 100 and Germany's Dax dropped about 4%, with some companies seeing double-digit falls in their share prices. The declines add to large falls seen on Thursday as markets continued to react to the uncertainty triggered by the US tariffs. Traders are concerned the tariffs will increase prices and weigh on growth in the US and abroad.

The sweeping new tariffs announced by President Donald Trump triggered a slump in global stock markets on Thursday. US markets had their worst day since the impact of the Covid pandemic in 2020. Trump told reporters he thought things were going "very well", adding: "The markets are going to boom." But on Friday markets continued to slide, then slumped after China imposed additional tariffs of 34% on all US goods from 10 April. In London, shares in Barclays bank and NatWest were down 8%, mining firm Glencore fell more than 9% and aero-engine maker Rolls-Royce was down 9%.

Russ Mould, investment director at AJ Bell, said the "relentless selling" had continued despite investors "hoping the pain would go away". "There are so many moving parts that getting your head around the situation [as an investor] isn't easy," he said. "With countless sectors set to be hit by tariffs, it's difficult to know where to begin to comprehend the situation." Jane Sydenham, investment director at Rathbones, said banking stocks, firms with supply chains that were exposed to tariffs, and tech stocks had all been falling. Investors had been buying into safe haven assets including gold and government bonds, she said. China had been "under severe pressure" to respond to tariffs of 54% on most goods, she said, and its economy was big enough to be able to take such action. But countries with smaller economies were having to be more cautious, she added.

The dollar index, which measures the value of the US currency against six peers, had sunk 1.9% on Thursday, the sharpest drop since November 2022, but on Friday it steadied, rising by 0.1%. Oil prices fell sharply as traders worried that the tariffs could slow economic growth and worsen trade disputes. The price of a barrel of Brent crude slumped 6% to $65 a barrel.

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has said the new tariffs "clearly represent a significant risk to the global outlook at a time of sluggish growth". She said the IMF was still looking into the "macroeconomic implications" of the measures and stressed the need to avoid actions that could do more damage to the global economy.

Traders are concerned the tariffs will increase prices and weigh on growth in the US and abroad.

Stocks fall again as Trump tariff jitters continue

How does it affect me if share prices fall?

2 hours ago Share Save Kevin Peachey Cost of living correspondent Share Save

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The sweeping new tariffs announced by President Donald Trump have triggered ructions across financial markets, with global share prices seeing hefty falls. It's the latest example of big shifts in stock markets making the news, whether they are booms or falls. As companies grow, they issue shares. The largest companies in the UK have shares which are bought and sold on the London Stock Exchange. Their collective performance is often quoted amid a blizzard of numbers that may feel confusing and irrelevant. Rarely does anyone mention the FTSE 100 during a coffee with friends. But there are good reasons why this performance affects your life and finances.

'I don't invest' - actually, you probably do

Many people's initial reaction to "the markets" is that they are not directly affected, because they do not invest money. Yet there are millions of people with a pension - either private or through work - who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments. Pension savers mostly let experts choose where to invest this money to help it grow. Widespread falls in share prices are likely to be bad news for pension savers. Hundreds of billions of pounds are held in defined contribution pensions at the moment. So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet. Experts say that investors have always had to ride economic shocks. Investments, by definition, require a long-term outlook and strategy. So, they are urging people not to panic in such circumstances or make knee-jerk decisions.

Is my specific pension affected?

Some people have a pension which promises a specific value, depending on their salary. Others have no pension at all. Millions of people have been automatically enrolled into a pension and may have not really noticed. This scheme sees employers divert wages into a pension and contribute some money themselves. The government adds a little in tax relief. In every case, the value of these pension savings is affected by investment performance. So "the markets" matter - maybe not as much as everyday wages, but for future pensions.

What happens if I'm just about to retire?

Timing is more critical for those at retirement age, as this may be when a retiree uses their pension pot to buy a retirement income, or annuity. The bigger the pot, the more income they will get in retirement. As you approach retirement age, pension pots tend to be moved to less risky investments, such as government bonds. When stock markets fall, these bonds can do better. Anyone who has a pension pot invested and is taking an income from it will again see their investment go up and down with the stock markets. That could mean getting less than you expected if you cash in too much after stock markets have fallen, making it important to plan how to make up any of this shortfall, experts say.

Is my job at risk?

If share prices fall for an extended period then that could have an effect on jobs. That's because investors in the company expect a return on that investment. When it falls for a while, then they would expect the business to address issues, for example by cutting costs, and therefore jobs. There is a huge element of the unknown here though. Companies have to consider lots of factors when making decisions on investment and employment.

Will my mortgage get cheaper or more expensive?

There is no direct link between the stock market and your mortgage or rent. Instead, all eyes will be on the Bank of England for its views on interest rates. Cutting them would make some kinds of mortgages cheaper, although cash savers would probably get a lower return on cash savings. Conversely, an increase would make borrowing more expensive, but bring better returns for savers.

Are stock market falls always bad?

Changes in the FTSE 100 and other indexes are not just for financial experts, they can affect our lives.

Why should I care if share prices fall?

Food bank for pets set up by animal charity

2 hours ago Share Save David Smith BBC News, Gloucestershire Share Save

BBC Animal charities say more people are rehoming animals due to rising costs

An animal sanctuary has set up a pet food bank to help people struggling with rising costs. Teckels Animal Rescue in Whitminster, near Stroud, will give pet food, treats and advice to those in need on the third Thursday of each month at Starbucks in Stroud. "The cost of food and insurance is going up, sometimes up by hundreds of pounds. If you are on a single income household then it is a lot for some people," said Lucy Henderson from Teckels. It comes as national animal charity Blue Cross says it has seen an increase in pets left in boxes, or tied up with notes on from owners who can not afford to keep them.

"We wanted to try to do something to help these families," Ms Henderson added. "The goal is we keep the dogs in the homes with their families. We don't want to have to rehome animals who have families who love them." She said the charity had "all sorts of food" to give out, adding: "If you do have a fussy dog or cat, we will try to help."

No stigma

The Blue Cross says it works with regular food banks to encourage people to donate food for pets as well as humans. "There is no stigma to asking for help to feed a pet," said Diane James, from the Blue Cross. "It's really important that your pet doesn't suffer, so contact us or other charities to see what we can do to help. "We've seen an increase in boxes being left with notes on, beautifully kept dogs left tied up with notes on. Before you get to that situation please just get in touch with us."

Teckels Animal Rescue says people are struggling with the rising cost of food and insurance.

Food bank for pets set up in Stroud by animal charity

The British winners and losers from Trump tariffs

1 hour ago Share Save Dearbail Jordan Business reporter, BBC News Share Save

Joe & Seph's Joe & Seph's Adam Sopher says the US is an important market for the popcorn firm

The UK exported nearly £60bn worth of goods to the US last year, making it one of the most important markets for thousands of British businesses. After President Donald Trump announced a 10% tariff on nearly all UK products, we spoke to businesses from some of Britain's biggest exporters to find out what it could mean for them.

Food and drink: 'We've got fewer orders than normal'

The UK food and drink industry exports a couple of billion pounds worth of goods to the US every year, satisfying Americans's taste for specialist products like smoked salmon, Scotch whisky and artisan cheeses. Adam Sopher, co-founder and chief executive at Joe & Seph's, the London-based luxury popcorn-maker, says the mere spectre of tariffs had already been affecting the business. US retailers usually place their orders for Christmas early in the year, but it's had far fewer orders than normal as retailers wait to see what happens. Joe & Seph's made £8m in sales last year of which 2%-3% came from the US. "So it is not huge," says Mr Sopher. "But the US is the biggest popcorn market in the world so we had planned that a lot of our growth would come from there." As a consequence, he says, it's now planning to focus on growing its exports to the Middle East and Asia. However, the 10% tariff was not as bad as he was expecting and US importers aready have to pay a 5.8% tariff on Joe & Seph's goods when they reach American ports. "So essentially what's happened is we're going to go from 5.8% to 10% as opposed to zero to 10%," says Mr Sopher. It is also lower than the new US tariffs levied on other countries, such as the 20% tax on the European Union. "Ironically it could be a good thing," he says. "These retailers who would have sourced from Europe might now say 'actually we'll buy more from the UK."

Chemicals: 'We're hoping there is an opportunity'

Robinsons Brothers' Adrian Hanrahan is hoping to win back US customers

For something not visible to the naked eye, organic chemicals are a huge US export for the UK, totalling close to £3bn last year. They are used across a massive range of industries from food to make-up to engines and into agriculture. Rather than feeling fearful about the US tariff, Robinsons Brothers reckons it may help the West Bromwich-based organic chemicals firm wrestle back American customers from cheaper overseas rivals. Chief executive Adrian Hanrahan says: "We supplied a lot more to the US but China and India knocked us out of that because of very low pricing." Under Trump's new regime, China's imports face a 34% tariff while India's products will be taxed at 27%. Robinsons Brothers chemicals are already taxed at 6% when they reach the US Mr Hanrahan says he is still trying to nail down whether the new 10% US tariff on UK goods means Robinsons Brothers' American customers will be paying an additional 4% or a total 16%. "Either way, it is a lot less than China or India will see going into the US," he says. "So I am really hoping and seeing an opportunity for us here in one area." He says that since January, the company has been receiving more enquiries from the US, including two customers Robinsons Brothers lost five years ago "at great expense". At the moment, Robinsons Brothers derives between 1.5% and 2% of total sales - which reached £24m last year - from America. This "doesn't seem a lot" says Mr Hanrahan but they are high margin products. There are, of course, concerns that rival countries may have to dump products once destined for the US on other markets, such as the UK which, in turn, could drive down domestic prices. Mr Hanrahan says: "I am hoping that the UK government is preparing for that and putting something in place to mitigate any form of product dumping in the UK and in the EU."

Aircraft: 'It's as clear as mud'

Sebastian Down DPS Designs Sebastian Down said the US must provide more clarity

UK exports to the US linked to aircraft totalled £2.2bn in 2024, official figures show. DPS Designs contributes a small - but important part - to that industry. The Forest of Dean-based firm makes metal moulds that are used to create plastic sections of airplane seats. The US is DPS's biggest growth market. Around £150,000 worth of sales come directly from the US out of a total £3m. The company's managing director of engineering, Sebastian Down, says the firm will negotiate with its customers "to see if we can share in the pain" of the new 10% tariffs - once he deciphers what they apply to. "The amount of detail is paper-thin," he said. DPS Designs has already had to grapple with the ambiguous language used by the White House around tariffs, after Trump announced 25% trade tariffs on steel and aluminium imports to the US. The company uses aluminium to make its moulds. "There was no-one you could speak to so it relied on me going onto the US department of whatever website, trying to look at lots of detail that basically didn't exist," he says. Ultimately, the aluminium tariff does not apply to his business. But the new 10% tariff criteria isn't clear either. Does it, for example, apply to parts that make up a product or only to the finished article itself? "It is as clear as mud," says Mr Down.

Vehicles: 'We may have to raise prices'

Maeving

Some UK exporters to the US see a chance to grow their firms, even as others fear a drop in sales.

Trump tariffs: UK exporters on the pain and opportunities

Who might buy TikTok as ban deadline looms? Amazon joins bidders

4 hours ago Share Save Lily Jamali BBC tech correspondent, San Francisco Share Save

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President Donald Trump says he is "very close" to brokering a deal to find a buyer for TikTok, which faces a US ban if its Chinese owner does not sell the app by the weekend. A bipartisan law passed by Congress last year mandates TikTok's Chinese parent company, ByteDance, sell the app. The platform 'went dark' for a day in January in the US after the law took effect, until Trump intervened and delayed the ban until 5 April. The US government has said TikTok poses a threat to national security because Chinese authorities might access its vast trove of user data, which Beijing denies.

Who might buy TikTok?

Speaking on Air Force One on Thursday, Trump said "multiple investors" were closing in on a deal. He also suggested the US could offer a deal where China agrees to approve a TikTok sale in exchange for relief from US tariffs on Chinese imports. Several potential buyers have cropped up in reports. Amazon has put in a last-minute offer to the White House to acquire TikTok, according to the BBC's US partner CBS. Amazon declined to comment. Trump has said he would be open to selling TikTok to Oracle co-founder Larry Ellison, as well as Elon Musk, although the latter said he had no intention of buying. Other potential buyers include billionaire Frank McCourt, together with Canadian businessman Kevin O'Leary - a celebrity investor on Shark Tank, the US version of Dragons' Den. Alexis Ohanian, who co-founded Reddit, said in a post on X last month that he had joined Mr McCourt's bid. The biggest YouTuber in the world Jimmy Donaldson - AKA MrBeast - has also said he's looking to buy TikTok as part of a group of investors. Tim Stokely, the British founder of OnlyFans, has also to offered to buy TikTok under his recently re-launched company, Zoop. Computing giant Microsoft, private equity giant Blackstone, venture capital firm Andreessen Horowitz and search engine Perplexity AI are also reportedly in the running for a stake. The White House has reportedly considered an option whereby ByteDance would keep ownership of TikTok's algorithm, but lease it to a new entity operating the video-sharing app within the US. Buyers circle and rumours swirl as TikTok sale deadline looms

Getty Images MrBeast is the most popular YouTuber in the world with more than 300m subscribers

If there is no deal, will TikTok be banned?

If no deal is reached by 5 April, the app could once again face a US ban and be pulled from app stores. Trump signed an executive order in January, which only delayed TikTok's ban by 75 days. His order did not overturn the ban on the app passed into law by Congress and upheld by the US Supreme Court. Trump could allow the law to stand, but ask the Department of Justice to continue to ignore it. The government would effectively be telling Apple and Google they will not be punished for allowing people to download TikTok on to their devices. TikTok returned to Google's Play Store and Apple's App Store in February, after the companies were reportedly told they would not face consequences for hosting it. Trump has also said he would "probably" extend the deadline, if needed .

Getty Images President Donald Trump has said he would "like to see TikTok remain alive".

What other platforms could TikTok users use instead?

Watch: Can young Americans live without TikTok?

Oracle and the founder of OnlyFans are also among names that have cropped up as the president seeks to broker a deal.

Who might buy TikTok as ban deadline looms? Amazon joins bidders

'The price of everything is sky high - even fish and chips'

1 hour ago Share Save Adam Laver BBC News, Yorkshire Reporting from Bradford Share Save

BBC Naveed Amini gets a chippy with his mum Sultana every week

Fish and chips is renowned as one of the nation's favourite dishes but in recent years spiralling costs have pushed up the price of the traditional fare. Hundreds of people lined Leeds Road in Bradford on a sunny Wednesday afternoon. The street has a myriad of shops and hot food options but the queue which snaked along the pavement was only interested in one - fish and chips. The Mother Hubbards takeaway was selling portions for just 45p - similar to the price when it opened more than 50 years ago.

People queued on Leeds Road to get themselves a bargain

Gary Sargent had made the short trip down the M62 to try and get his hands on the dinnertime deal before it sold out. The 59-year-old tells me: "We've been before and it's usually £18, but for 45p you can't go wrong can you? "I'd have it more but the prices they charge nowadays is ridiculous." "You're lucky to get vegetables for under a quid at the moment, so obviously we've got to take advantage of this," Lee Stewart explains from his spot in the queue. He says: "I remember when fish and chips were under a fiver, so I don't know when it got to £12. "It's the same with burgers. "The cost-of-living is crazy."

Friends Gary Bromley (left) and Lee Stewart queued together

The increase in the cost of the dish in the past few years is partly due to a combination of increased energy and labour costs, sanctions on Russian seafood due to the invasion of Ukraine and poor potato harvests. Prices paid to UK farmers for potatoes have were also up last year according to figures from the Department for Environment Food and Rural Affairs' Agricultural Price Index. In the same week as the chippy chopped prices, people in Bradford saw their council tax rise by almost 10%, while Yorkshire Water is raising bills by 29%. The annual bill for a household using a typical amount of gas and electricity rose to £1,849 per year, an increase of £111. Meanwhile, the simple joys of a Friday night chippy tea has followed suit. Research suggests the average price of a portion of fish and chips rose to nearly £10 in the five years to July 2024, from £6.48 in July 2019.

'Sky high'

Accompanying his mum to the chippy was Naveed Amini. The 43-year-old says that even things like ketchup have doubled in price in the last few years, while wages are stagnating. "A bottle of ketchup was £1 a year and a half ago, now we're paying £2.50 or £3," he says. "It has gone up considerably." His mum Sultana Amini, 69, remembers a simpler, cheaper, time. "I remember when it was 3p for fish and chips", adding that "you can't even get just chips" for 45p. "Everything is sky high," Mrs Amini adds.

Pravin Ladd stopped off for a chippy when he saw the queue and remembered about the 45p deal

Pravin Ladd, 69, was driving along Leeds Road when he noticed the queue of people outside his local chippy. That was when he remembered about the 45p deal, so he pulled up an joined the queue. "If you buy fish and chips it's usually £10," he says - adding that cooking yourself is not much cheaper. "When I do my own cooking and I buy a bit of fish it costs £6 or £7, then you add everything else. "Everything has gone up." He added: "To buy fruit and veg it costs me £15, but a few years ago it cost me £2 or £3. "It seems to go up on a daily basis."

Listen to highlights from West Yorkshire on BBC Sounds, catch up with the latest episode of Look North.

A city chippy was selling portions for 45p - people queueing share their thoughts on rising prices.

Bradford locals queue for 45p chips as prices now 'too expensive'

Trump's tariffs on China, EU and more, at a glance

20 hours ago Share Save Kayla Epstein BBC News Share Save

Watch: Three things to know about Trump's tariffs announcement

US President Donald Trump announced a sweeping new set of tariffs on Wednesday, arguing that they would allow the United States to economically flourish. These new import taxes, which Trump imposed via executive order, are expected to send economic shockwaves around the world. But the US president believes they are necessary to address trading imbalances and to protect American jobs and manufacturing. Here are the basic elements of the plan. Live updates: Reaction to Trump's tariffs announcement

10% baseline tariff

In a background call before Trump's speech, a senior White House official told reporters that the president would impose a "baseline" tariff on all imports to the US. That rate is set at 10% and will go into effect on 5 April. It is the companies that bring the foreign goods into the US that have to pay the tax to the government, although this could have knock-on effects to consumers. Some countries will only face the base rate. These include: United Kingdom

Singapore

Brazil

Australia

New Zealand

Turkey

Colombia

Argentina

El Salvador

United Arab Emirates

Saudi Arabia

Custom tariffs for 'worst offenders'

White House officials also said that they would impose what they describe as specific reciprocal tariffs on roughly 60 of the "worst offenders". These will go into effect on 9 April. Trump's officials say these countries charge higher tariffs on US goods, impose "non-tariff" barriers to US trade or have otherwise acted in ways they feel undermine American economic goals. The key trading partners subject to these customised tariff rates include: European Union: 20%

China: 54% (which includes earlier tariffs)

Vietnam: 46%

Thailand: 36%

Japan: 24%

Cambodia: 49%

South Africa: 30%

Taiwan: 32%

No additional tariffs on Canada and Mexico

The 10% baseline rate does not apply to Canada and Mexico, since they have already been targeted during Trump's presidency. The White House said it would deal with both countries using a framework set out in Trump's previous executive orders, which imposed tariffs on both countries as part of the administration's efforts to address the entry of fentanyl to the US and border issues. Trump previously set those tariffs at 25% on all goods entering from both countries, before announcing some exemptions and delays.

25% tariffs on car imports

A 10% rate of import tax will apply globally - with higher rates for a list of Trump's "worst offenders".

Trump's tariffs on China, EU and more, at a glance

Lush and Kwik Fit warn tax rise will push up prices

3 hours ago Share Save Tom Espiner & Emma Smith BBC business reporters Share Save

Getty Images

Cosmetics company Lush and car repair chain Kwik Fit are among firms which have warned they will raise prices due an increase in employers' National Insurance (NI). Other firms have told the BBC they will reduce how much profit they make, freeze hiring or in some cases cut jobs to cover the higher costs. From Sunday, employers will have to pay NI at 15% on salaries above £5,000, instead of 13.8% on salaries above £9,100 currently. The Treasury said the billions raised will be spent on public services, including the NHS.

Lush told the BBC that with 3,600 employees in the UK and Ireland, it would have to find an extra £2.7m per year. Kasey Swithenbank, Lush's retail head for the UK and Ireland, said: "We are going to be taking small incremental price changes. We are taking an approach where we look at certain categories at key points of the year so hopefully our customers don't feel the full burden straight away."

Kwik Fit boss Mark Slade says the National Insurance changes will affect prices and hiring.

Kwik Fit, which employs around 7,000 people, estimates the NICs rises will cost it £6.4m. This will have a knock-on effect on prices, and recruitment, said Mark Slade, its managing director. "We are really careful to make sure KwikFit is always competitive and benchmarked against the people around us - but the reality is that includes increasing prices." He added: "There will be some people who aren't replaced over the coming year and that will be in the senior levels."

What are the changes?

The rate that employers pay in contributions will rise from 13.8% to 15% on a worker's earnings above £175 per week. The government expects about 940,000 firms to pay more, 250,000 companies to pay less, and 820,000 to see no change.

The threshold when employers start paying the tax on each employee's salary will be reduced from £9,100 per year to £5,000.

But Employers Allowance - the amount employers can claim back from their National Insurance bill - has been raised from £5,000 to £10,500.

BBC Breakfast contacted around 200 UK businesses and charities in March, across different industries, from sole traders to large companies to get a sense of the impact of the increase in employer National Insurance Contributions. Some 121 completed the questionnaire and around 100 of these businesses told us they had at least an approximate idea of how much increases in employer NICSs would cost them. The costs ranged from £1,000 to £39m depending the size of the business and the number of employees. Around 60 of the businesses which were planning to increase the staff count before announcement said the Budget had affected these plans.

How will firms manage the rises?

BBC Breakfast's questionnaire asked employers to choose from a list of actions they would take to manage increases in NICs. 77 said they would pass on costs to customers in price rises 68 said they would freeze or reduce hiring 81 said they would reduce their profit margins 39 said they would manage increases through job losses Businesses most frequently told us they would choose a combination of these things.

BT boss Allison Kirkby said tax changes meant BT was speeding up cost cutting it was going to do anyway

Allison Kirkby, chief executive of BT, said the tax changes, which will cost the firm £100m, will mean it speeds up job cuts it was already planning. She added that BT is "delighted" with tax relief on infrastructure investment in the Spring Statement and UK planning reforms. "At the moment, like the country, we are focused on getting BT back to growth," she said. "Predictability on taxation, on regulation and on planning is super helpful for the investment that goes into infrastructure like ours, which is the digital backbone of the country."

Angela Burns says the tax changes are "really challenging".

Angela Burns is the chief executive of the Webb Hotel Group, a group of four hotels based in Sutton Coldfield in the West Midlands. It employs just under 300 people, and she says the NICs rises alone will cost £200,000 a year, with additional minimum wage and pension costs taking that to £600,000. "It's really tough because our labour force is the main expense in our business," she said. "As soon as it was announced in the budget in October, we started to look at restructuring, and as people have left, we haven't re employed. So we've actually cut our workforce down from about 320 to about 280 now to prepare ourselves." She said prices would have to be moved "slightly upwards". "But it's a balancing act as to what customers are prepared to pay," she added.

Greg Strickland, general manager of trampoline activity firm Jump Xtreme in Bolton, said the changes added £30,000 of costs "overnight". He said it had cut 16 hours per week off some 40-hour contracts to cover the cost. Meanwhile Andrew Lane, managing director of Union Industries in Leeds said the firm, which makes industrial doors, shares about half its post-tax profit with employees. "This is going to hit them," he said. "There will be less money to distribute to our employee-owners."

The brands are warning of the impact of employer National Insurance Contribution rises which kick in on Sunday.

National Insurance: Lush and Kwik Fit say rise will push prices higher

What is live shopping and will it take off?

3 hours ago Share Save David Silverberg Technology Reporter Reporting from Toronto Share Save

Kelsey Krakora Kelsey Krakora made a career shift into live shopping

After graduating college Kelsey Krakora worked full time in a steakhouse, bartending and serving meals. She had dabbled with selling clothes online, but only part-time. But in 2021 that all changed for Cleveland-based Ms Krakora. She switched to selling clothes on Whatnot and then Poshmark - online marketplaces where people can also use live video to sell items. "My first live show with Poshmark was 27th November 2022. I sold zero things on my first show... but that didn't last long!" Now she sells around 100 items per show, worth about $1,000 in sales (£773). Her shows are on average three hours long and she does between two and three a week. "These events are inclusive, welcoming, you can shop in your PJs, and there's no need to head to the shopping mall," says Ms Krakora.

Live shopping has been popular in the Asia-Pacific region for some time, where social networks such as China's Douyin regularly host live shopping streams, but now European and US brands are experimenting with this new way of selling their products. Live shopping is a close relative to shopping channels like QVC, where viewers are urged to call in and buy the products demonstrated by presenters. But live shopping acts as a quicker shortcut from buyer to product, especially in the era of one-click purchases, made popular by online retailers such as Amazon. Also, as younger generations increasingly cut the chord and can't access cable TV, shopping channels don't hold the same relevance as they once did. It's estimated the live shopping market has reached $32bn, with the most active sectors being fashion, cosmetics and collectibles. A 2024 survey from digital commerce platform VTEX found that 45% of US consumers have browsed or purchased from live shopping events in the past 12 months.

Guillaume Faure, chief executive of LiveMeUp, which provides live shopping video software, remembers when interest in live shopping surged. "When Instagram introduced Reels, and when YouTube launched Shorts, we saw live shopping really take off." He's noticed the popularity of tutorials and how-to videos in live shopping events, such as how hosts can teach shoppers how to apply a certain type of make-up, or arrange a variety of flowers to deliver the most evocative bouquet.

Getty Images Chinese blogger Li Jiaqi sold 15,000 lipsticks in five minutes through livestreaming

However, some analysts think that live shopping is likely to have a limited appeal. "Many companies have tried live shopping but it simply doesn't scale," says Sucharita Kodali, retail analyst at Forrester Research. "Maybe it works in China where they don't have the same kind of store density we have in the US, where it's better for consumers to go and try something on rather than watch a host try on a piece of clothing," she adds. Jonathan Reynolds, academic director of the Oxford Institute of Retail Management, University of Oxford, also highlights that the Chinese market is different. "In China, so-called key opinion leaders (KOLs) like Li Jiaqi, the so-called 'Lipstick King, are well established," he says. "Li has carefully built his personal brand to demonstrate his expertise and build consumer trust. KOLs are also working within much more sophisticated platform ecosystems," Mr Reynolds explains. Even Ms Krakora admits that not all products work on a live shopping stream. For example, she prefers to shop for jeans in-person. "I'm tall, and I have specific cuts of jeans that I wear," she says, "and there are tried-and-true styles and brands I like." Bruce Winder, a retail analyst in Toronto, also says that for some shoppers, the convenience of live shopping might be too attractive. "Consumers may get addicted to the show or channel... and some consumers may not be able to stop watching and spending as they get caught up in the moment," he adds.

Bruce Winder Live shopping might be too addictive for some shoppers says Bruce Winder

Big in Asia, live shopping involves brands putting on live shows to sell direct to shoppers.

What is live shopping and will it take off?

Eli Lilly boss: 'Tariffs are pivotal moment and hard to come back from'

David Ricks, the Chief Executive of Eli Lilly – which is based in Indianapolis – told the BBC that whilst he understood the intentions, he was doubtful if it could succeed in both clawing back US manufacturing jobs, and raising hundreds of billions of revenue for the American government.

He also added that the UK's status as a pharmaceutical and life sciences power was in decline.

While Mr Ricks said he thought it may encourage some companies to relocate some manufacturing, he was doubtful it would also create hundreds of billions in additional revenue for the US promised by President Trump.

In an exclusive interview with the BBC, David Ricks described it as a watershed moment in US economic history, "I think it's a pivot in US policy and it feels like it'll be hard to come back from here."

The boss of US pharmaceutical giant Eli Lilly says there is no looking back from Donald Trump's decision to impose sweeping tariffs on imports from the rest of the world.

Eli Lilly is a pharmaceutical giant worth $750 billion with 50,000 employees across the US, Europe and Asia.

Because of their complex supply chains and the often life saving products they make, pharmaceutical companies along with microchip makers were temporarily exempted from the tariffs imposed on all products imported into the US.

But Mr Ricks seemed in little doubt that tariffs would eventually hit and that would have damaging consequences for investment in new medicines.

He explained that drug prices were essentially capped in Europe and the US which meant the impact of tariffs would be felt elsewhere.

"We cant breach those agreements so we have to eat the cost of the tariffs and make trade offs within our own companies. Typically that will be in reduction of staff or research and development and I predict R&D will come first. That's a disappointing outcome."

Mr Ricks said he did not support the imposition of tariffs but understood its intention and respected Mr Trump's political mandate.

"We don't support tariffs, to be clear. In pharma, about 70% of global R&D takes place in the United States. So we're creating the next generation of breakthroughs and cures. But the production is heavily weighted outside the US. And that's not unique to our industry. It happened with electronics and software and other things".

"So I think what this administration is saying is we want both. We want the means of production and we want the research and development intellectual property generation."

Eli Lilly are in the process of building a new additional £800 million facility in Limerick in Ireland where they employ over 3,000 people. Mr Ricks said that development would proceed.

"There's plenty of demand outside the US so we'd have to look at the flow of goods because we wouldn't want to have to pay tariffs if we didn't need to but I think for the moment that's fine."

But Mr Ricks said that its investment in the UK had been in decline and warned that slow regulation and poor uptake of new medicines threatened the UK's reputation as an important life sciences hub and that patients were missing out on new advances in medicine.

Mr Ricks said he delivered some "candid" comments to senior ministers including the Prime Minister, Health Secretary and Business Secretary.

"The UK's advantage is slipping. If you look at the numbers there is disinvestment in research and development. It's been on a steady decline."

So is the UK complacent when it thinks of itself as a life sciences super power?

"That's one way to put it."

Mr Ricks said countries like Germany spend nearly double of their health budget on medicines.

"The UK is not a large market. But what it could be is an exceptional market. You need three things to make our industry work. A strong intellectual property system, and the UK is quite good. You need a regulator that's timely efficient and predictable - pretty good there as well but most importantly you need a commercial market that rewards innovation - and here there's been significant backsliding".

The Chief Executive of Eli Lilly has told the BBC that he is doubtful tariffs could bring manufacturing jobs to the US whilst raising billions in tax revenue

US pharma boss calls tariffs a ‘pivotal moment'

Faisal Islam: This is the biggest change to global trade in 100 years

The impact of these tariffs on the world economy will be huge.

They can be measured by the lines on a chart of US tariff revenue jumping to levels not seen in a century - beyond those seen during the high protectionism of the 1930s.

Or in the overnight stock market falls, especially in Asia.

But the true measure of these changes will be significant changes to long-standing global avenues of trade.

At its heart this is a universal tariff of 10% on nearly all imports into the US for every country, coming in on Friday night. On top of that dozens of "worst offenders" will be charged reciprocally for having trade surpluses.

The tariffs on Asian nations are truly remarkable. They will break the business models of thousands of companies, factories, and possibly entire nations.

Some of the supply chains created by the world's biggest companies will be broken instantly. The inevitable impact will surely be to push them towards China.

Is this just a grand negotiation? Well the US administration appears to be claiming the tariff revenue for planned tax cuts. The scope for quick adjustment seems limited. As one White House official said bluntly: "This is not a negotiation, it's a national emergency".

The impact of the tariffs will be huge, with significant changes to long-standing global avenues of trade.

Trump tariffs: This is the biggest change to global trade in 100 years

UK Prime Minister Keir Starmer spoke with the country's most senior business leaders on Thursday morning, after US President Trump announced a new wave of tariffs.

He said there will "clearly" be an economic impact from the decisions the US has taken, both in the UK and globally.

The PM told the leaders that the UK will keep a "clear head" in ongoing negotiations on a deal between the US and UK.

The prime minister told the UK's biggest business leaders a trade war with the US is not in the UK's national interest.

Starmer: UK will keep 'cool head' after tariff announcement

UK draws up list of US products it could hit with tariffs

3 hours ago Share Save Kate Whannel Political reporter Sam Francis Political reporter Share Save

Getty Images Bourbon whiskey is among the US products that could face import taxes

The UK government is drawing up a list of US products it could hit with retaliatory tariffs after President Donald Trump announced a wave of new import taxes. This is a toughening of the government's stance as ministers seek to finalise a trade deal with the US. Business Secretary Jonathan Reynolds says he is consulting UK firms about the likely impact of the 10% tariffs being imposed on nearly all UK exports to the US and which products should be on the list. If UK negotiators can not agree a deal to reduce the 10% tariff by 1 May, the business secretary told MPs the government could impose retaliatory tariffs on US imports.

The government has published a sample list of goods that could face future UK tariffs. Being on the 417-page list does not necessarily mean a product will face tariffs, the government said. The list covers 27% of imports from the US - chosen because they would have a "more limited impact" on the UK economy, the Department for Business and Trade said. The products range from pure bred horses and children's clothes to crude oil, firearms and bourbon whiskey. Reynolds says talks are ongoing with the US government to secure an economic deal aimed at avoiding or reducing tariffs. But he warned that the UK "reserves the right to take any action we deem necessary if a deal is not secured". In the event of reaching a deal with the US, the consultation with businesses would be paused, he added. Speaking in the House of Commons, he said the fact the US had put lower tariffs on the UK compared to other countries "vindicated the pragmatic approach the government has taken". However, he said he was "disappointed" by the increase. Conservative shadow business secretary Andrew Griffith argued "the government got no special favours" - noting the UK was facing the same tariffs as the Congo and the Christmas Islands. The EU was being hit by 20% tariffs and the UK's lower rate of 10% was actually a vindication of those who "were pilloried and abused" for backing Brexit, Griffith argued.

The UK exported almost £60bn worth of goods to the US last year, mainly machinery, cars and pharmaceuticals. In addition to the 10% tariffs, a 25% tariff has been put on UK car exports, as well as steel and aluminium products. Some products are exempt from the charges announced on Wednesday, according to White House documents - including the UK's pharmaceutical sector, along with semiconductors, copper and some lumber items. The government's official forecaster estimates a worst-case scenario trade war could reduce UK economic growth by 1% and wipe out the £9.9bn of economic headroom Chancellor Rachel Reeves gave herself at last week's Spring Statement. It could mean that in order to meet her own fiscal rules, she would have to raise taxes or make cuts to government spending.

Behind the scenes the government says it has been laying the groundwork for a trade deal with the US. Insiders on the UK side say a deal is practically done. But no one knows if, or when, Trump will sign off on it. Any deal would be broader than just lower tariffs the BBC understands, focusing on technology, but also covering elements of trade in goods and services as well as agriculture - a controversial area in previous unsuccessful US-UK trade talks. Chancellor Rachel Reeves has suggested the UK could change its taxes on big tech firms as part of a deal to overturn US tariffs. The digital services tax, introduced in 2020, imposes a 2% levy on tech firms, including big US firms such as Amazon, bringing in about £800m in tax per year.

The business secretary says he wants to reach an economic deal but would take "necessary steps' if talks failed.