Time will tell how much damage has been inflicted on the credibility of Trump’s economic policy and administration

Donald Trump’s climbdown on Wednesday from the most draconian aspects of his tariff regime has uncovered a damning picture of chaos at the heart of his presidency without necessarily alleviating their most painful effects.

The president’s landmark “liberation day” unveiling of tariffs in the White House Rose Garden on 2 April was supposed to be symbolic gateway to his promised “golden age of American greatness”; instead, it triggered a cascade of global market crashes that prompted warnings of a recession, or even a 1930s-style depression, while Trump brushed it all off as temporary “disruption”.

Continue reading…

White House official says an additional 20% tariff, tied to measures targeting fentanyl-related imports, brings the total to its current level

• Read the latest full report
• US-China trade war intensifies as Beijing’s tariffs come into effect after Trump pause

China and the European Union have exchanged views on strengthening their economic and trade cooperation in response to US tariffs, the Chinese commerce ministry said on Thursday, according to Reuters news agency.

In a video call on Tuesday, China’s commerce minister Wang Wentao discussed with European trade and economic security commissioner Maros Sefcovic the restart of talks on trade relief and to immediately carry out negotiations on electric vehicle price commitments, the Chinese ministry statement said.

Continue reading…

The president’s U-turn after his maverick plan threatened meltdown has echoes of the 2022 UK crisis

• Business live – latest updates

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

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

Continue reading…