Latest impact on UK markets revealed after Donald Trump’s ‘explosive’ tariffs sees global

Donald Trump insisted he knew what he was doing as his tariffs saw global stocks plunge amid fears of an all-out trade war with China.

Speaking at a National Republican congressional committee dinner, Trump said:

Companies are pouring back into our country. I know what the hell I’m doing. I know what I’m doing, and you know what I’m doing, too. That’s why you vote for me.

They ripped us off left and right. But now it’s our turn to do the ripping. And I do think that the war with the world, which is not a war at all, because they’re all coming here. Japan is coming here as we speak.

They’re in a plane, flying lots of them, all tough negotiators, but things that people wouldn’t have given us two years ago … three years ago, five years ago, seven – they’re giving us everything. They don’t want tariffs on themselves.

On Wall Street yesterday, the S&P 500 dropped 1.6 per cent after wiping out an early gain of 4.1 per cent. That took it nearly 19 per cent below its record set in February.

The S&P 500 has shed nearly $6trillion since Mr Trump unveiled the tariffs last week, the deepest four-day loss since the benchmark’s creation in the 1950s. The index is now nearing a bear market, defined as 20 per cent below its most recent high.

Chancellor Rachel Reeves insisted Britain is ‘accelerating trade deals’ with the rest of the world as Donald Trump’s global tariffs continue to trigger economic shockwaves.

The Chancellor and Business Secretary will later meet India’s finance minister for talks aimed at negotiating a deal with the country as the Chancellor said she wanted to create “the best possible conditions” for British business in a “changing world”.

Prime Minister Sir Keir Starmer on Tuesday reiterated his call for a calm approach to the changed US trade policy as a sense of optimism returned to the financial markets after several days of heavy losses.

Britain faces the lowest 10% ‘baseline’ tariff rate and has resisted imposing immediate retaliatory action, unlike the European Union which is impacted by a 20% import tax.

Ministers still hope an economic agreement with Washington can be reached to soften the blow of the levy which strikes UK goods, along with a 25% import tax on cars and separate ones for steel and aluminium.

But the Government will also seek to strengthen trade ties with other countries, including by trying to rebuild ties with the European Union.

In a changing world, this Government is accelerating trade deals with the rest of the world to back British business and provide the security working people deserve. We are going further, faster to create the best possible conditions for British business by working to reduce barriers to trade.

Asian stock markets tumbled earlier this morning as they opened lower and extended their losses throughout trading hours.

Japan’s stock index fell more than 5 per cent at one stage with global markets having been wobbly for days as investors are flummoxed over what to make of the trade war.

• The Nikkei 255 ended the day down 2.7 per cent at 32,130
• the Hang Seng in Hong Kong lost 1.8 per cent to 19,769;
• South Korea’s Kospi fell 1.9 per cent to 2,291.
• The Shanghai Composite index was trading roughly level at 3,141,
• While the S&P/ASX 200 in Australia declined 1.8 per cent to 7,375 and shares in New Zealand also fell.

This morning, European indexes have seen a slump with the UK’s FTSE 100 dropping 2.34% while France’s Cac 40 is down 2.4% and Germany’s Dax fell by 2.3%.

The FTSE 100 fell sharply on Wednesday morning after a new wave of Donald Trump’s tariffs came into force, including a 104% levy on Chinese goods.

The index, which tracks the UK’s top 100 listed companies, fell 2.34% in early trades, or by 186 points, to reach 7,724.29 shortly after opening, wiping out most of the gains made on Tuesday.

Elsewhere in Europe, France’s Cac 40 was down by 2.4% while Germany’s Dax index slumped by about 2.3%.

Here is our top story this morning as stock markets plunged in response to Donald Trump’s tariffs which came into effect for around 60 countries.

The President’s tariffs have shaken a global trading order that has persisted for decades, raised fears of recession and sent stock markets around the world reeling.

Read Mark Duell’s story here:

Good morning and hello to MailOnline’s live coverage as stock markets plunge once again in response to Donald Trump’s tariffs.

Trump’s tariffs have taken effect on around 60 countries including a 104 per cent levy on Chinese imports.

Countries have been braced for potential economic damage from the import taxes on goods entering the US from midnight Washington time – just after 5am in the UK.

Stick with us for the latest news, reaction and analysis throughout the day.