Tariffs live: Trump insists China wants trade deal as Beijing plans US imports block

London’s FTSE 100 index climbed firmly higher as global markets recovered ground on hopes for potential trade deals between the US and other countries.

The index was up 2.71%, or 208.45 points, to 7,910.53 at the close of trading.

In the US, the Dow Jones index was up 2.45%, while the S&P 500 finished 2.36% higher.

Donald Trump has threatened to impose an extra 50 per cent levy on top of the existing 54 per cent tariff on Chinese imports.

The US president said he would introduce the measures if Beijing does not withdraw the 34 per cent tariffs it had imposed on US products last week.

This means the total new levies could climb to 104 per cent on Chinese goods imported into the US this year.

The US president said China would need to back down on Tuesday, if it did not want to see the measures imposed on Wednesday.

|If China does not withdraw its 34 per cent increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50 per cent, effective April 9th,” he wrote on Truth Social.

On April 2, Mr Trump announced an extra 34 per cent tariff on all Chinese goods imported to the US, on top of an existing 20 per cent levy; bringing tariffs to 54 per cent.

Now, Mr Trump is threatening an extra 50 per cent tariff on Chinese goods if Beijing does not scrap retaliatory measures by today, Tuesday 8 April – taking tariffs to an unprecedented 104 per cent on Chinese imports, a White House official confirmed.

The prime minister has said he wants the maintain a digital service tax, after reports suggested it could be abolished as part of trade deal talks with the US.

Sir Keir told the Liaison Committee that AI and other technology companies were “very powerful”.

He added: “In relation to trade talks, obviously there are questions about the appropriate way to tax digital services, etc. There are questions about how technology impacts with free speech.

“I’ve been very clear in my view that we need to have arrangements for a digital tax of some sort, and equally we need to be pioneers of free speech, which we have been for very many years in this country.

“But at the same time, we rightly protect under the Online Safety Act – further provisions of which are coming into force pretty quickly – and when it comes to dealing with paedophiles and protecting children, I take a pretty strong line that we take the necessary measures in order to do so.”

US Trade Representative Jamieson Greer has said Donald Trump has been clear that he will not do tariff exemptions in the near term.

Labour’s hugely influential sister party has called for the government to ramp up its focus on communities in response to Donald Trump’s tariffs.

The Co-op Party, represented by 41 Labour MPs including business secretary Jonathan Reynolds, said community and member-owned businesses must be central to the government’s response to the unfolding trade war.

Labour committed in its manifesto to doubling the size of the co-operative sector. But Co-op general secretary Joe Fortune said Mr Trump’s tariffs are an opportunity for a “new economic settlement for communities”.

“Now is the time for the Government to back what works: putting power and resources in the hands of communities to shape their own future,” Mr Fortune said.

He added: “Co-operative businesses keep wealth local – they are more resilient, more long-lasting and more equitable. And crucially, they put both power and wealth in the hands of working people.”

Even Stateside, where the stock market rout has been so pronounced following the escalation of Trump’s potential trade war, S&P 500 futures were showing a rise of more than 1.3 per cent.

Investors were finally getting some relief from the sharp drops and some were even cautiously looking to buy back in. But is this really the end of the stock market’s reaction to the tariffs? Business and money editor Karl Matchett reports:

The FTSE 100 is on track to having its best day in more than three years.

The gains are set to bring some relief to investors after stock prices around the world plunged in value since US President Donald Trump’s tariffs announcement last Wednesday.

US trade negotiators are prioritising allies as they move forward on trade and are focused on big trading partners that have had big trade surpluses for years with the United States, White House economic adviser Kevin Hassett said on Tuesday.

“The president will decide when and if to talk with China, but right now, we’ve received the instruction to prioritize our allies and our trading partners like Japan and Korea and others,” Hassett said in an interview with Fox News.