Money blog: World retaliates against Trump tariffs - as shoppers warned about goods likely to be affected (2025)

US commerce secretary Howard Lutnick says Donald Trump's economic policies are "worth it", even if they lead to a recession.

"These policies are the most important thing America has ever had," he told CBS.

"The only reason there could possibly be a recession is because the Biden nonsense that we had to live with. These policies produce revenues. They produce growth. They produce factories being built here."

He also declined to call the president's use of tariffs as chaotic, saying the "only one who thinks it's chaotic is someone who's being silly".

It's seemingly never a quiet day at the White House, even when the cars parked out front are electric.

Just as he announced 25% global tariffs on steel and aluminium, US President Donald Trump decided to buy a Tesla in a show of support for his billionaire buddy Elon Musk.

Trump blamed "radical left lunatics" boycotting the firm to "attack and do harm" to Tesla owner Elon Musk for the company's recent drop in value.

"He's been treated very badly... you can't be penalised for being a patriot," he added.

Tesla has seen more than $800bn wiped from its stock market value, with suggestions of further falls.

Shares have fallen for seven straight weeks, the longest losing streak since the company floated on the stock market 15 years ago.

Our business presenter Ian King looked at the causes of Tesla's remarkable slide in this piece...

Donald Trump's tariffs on global steel and aluminium imports will cover plenty of different items.

Derivative products made from the metals, ranging from nuts and bolts to bulldozer blades, could see cost increases for industry and consumers alike.

The EU said household products like cooking ware or window frames will also be impacted, as will semifinished and finished products, such as steel pipes, wire and even tin foil.

Agricultural products will also be impacted — including poultry, beef, some seafood, nuts, eggs, sugar and vegetables.

We've seen how the British steel industry is reacting to Donald Trump's tariffs (see 8.45am post), but what about the other metal levy?

Well, the head of an aluminium industry body says Britain's recycling efforts could be weakened by Trump's tariffs.

Nadine Bloxsome, chief executive of The Aluminium Federation, said the UK aluminium sector is "already seeing the first impacts" of the levies.

"The sharp rise in US premiums has created new incentives for scrap exports, raising the risk of significant domestic scrap leakage," she said.

"This not only weakens the UK's recycling capacity, but risks undermining our sustainability objectives and circular economy targets.

"Additionally, the uncertainty around potential trade diversion is placing considerable pressure on UK producers, especially as semi-finished goods may flood the UK market at lower costs."

Here's the moment Peter Navarro, Donald Trump's trade adviser, spoke to Sky's US correspondent Mark Stoneabout US tariffs.

Navarro said there would be "no exemptions" to the levies unless Trump changes his mind, which Stone points out seems to be a daily occurrence in the White House.

"You don't understand what a negotiation looks like," Navarro snaps back.

"Stop with the rhetoric, stop that crap," he adds.

The chief of industry body UK Steel has labelled Trump's tariffs as "hugely disappointing" and said customers in the US will have to pay an extra £100m per year as a result.

Gareth Stace said some steel company contracts have already been cancelled or been put on hold since the decision.

"Surely President Trump realises that we are his friend, not his foe, and our valued customers in the US are our partners, they're not our enemies," he said.

Tariffs will "hit us hard" at a time when imports of steel into the UK are rising and the industry is "struggling" with energy prices.

The Unite union has called on the government to "act decisively to protect the steel industry" because it is "a matter of national security".

Tariffs 'threaten UK jobs'

The head of Community, the British steelworkers' union, has painted a grim picture, saying US tariffs could cause job losses.

"These US tariffs on UK steel exports are hugely damaging and they threaten jobs," Alasdair McDiarmid says.

"For the US it's also self-defeating, as the UK is a leading supplier of specialist steel products required by their defence and aerospace sectors."

By James Sillars,business and economics reporter

It could be argued that Donald Trump was in need of some positive headlines.

It's been a horrendous past week for the self-styled champion of American industry, with stock market investors taking a revised view on his trade war.

After recent losses on the S&P 500 topped $4trn in the wake of his refusal to rule out a recession, along with a collapse in the value of the dollar, US and European markets declined further yesterday.

The falls were more measured, with the latest tariff threats emanating from the White House a key driver.

But there was a shift in focus today, with hopes of a ceasefire in the Russia-Ukraine war bolstering sentiment, according to analysts.

US-brokered talks in Saudi Arabia achieved agreement from Ukraine on the terms - with the ball now in Russia's court.

Also, seemingly, brightening the mood further was US confirmation that it had restored military and intelligence aid to Ukraine.

US futures were trading higher as dealing in Asia got into full swing.

After losses above 1% across many European indices on Tuesday, the FTSE 100 opened 0.3% higher.

The CAC in France and DAX in Frankfurt were both 0.9% up.

Gains were tempered by the EU's decision to retaliate as US tariffs on all steel and aluminium imports took effect.

Threats to the return to buying are looming large.

Higher than expected US inflation data this lunchtime, along with any new trade war salvoes, are seen as the main risks.

With Donald Trump's trade war expanding to cover the world, how are different countries responding?

We've already seen the European Union announce retaliatory tariffs on the US (see 7.36am post), with France's European affairs minister saying this morning the bloc has the "means to go further" if it wants.

Chinameanwhile has said it will take "allnecessary measures to safeguard its rights and interests" in the face of tariffs.

A spokesperson for the country's foreign ministry added that the US trade decision had violated World Trade Organisation rules.

Over in Japan, the chief cabinet secretary labelled Trump's imposition of tariffs "regrettable" despite Tokyo's request for an exemption.

He said the movecould have a major impact on US-Japan economic ties.

India's steel secretary said today the industry does not see a major impact from tariffs imposed by Trump on steel imports, as they do not export much steel to the region.

Australia's Prime Minister Anthony Albanese said the move was "against the spirit of our two nations' enduring friendship" but ruled out tit-for-tat duties.

"Tariffs and escalating trade tensions are a form of economic self-harm, and a recipe for slower growth and higher inflation," he told reporters.

He added: "Our government will continue to put forward a strong case for an exemption, noting the last time this occurred it took months for that exemption to be granted."

Tax minister James Murray says the UK must adopt a "pragmatic" approach to Donald Trump's 25% tariffs on steel.

Speaking to Wilfred Frost on Sky News Breakfast, he said the levy is "obviously disappointing".

"We're champions of free and open trade, but our response to this is a pragmatic one," Murray says, adding the UK will continue its "cool-headed" approach.

He says Britain is in a "very different position" to the EU, which will take retaliatory measures on the US starting on 1 April, because of Sir Keir Starmer's visit to the White House last month.

"The UK and the US have been negotiating rapidly for an economic agreement, and so we're in a position where that negotiation is ongoing, and these global tariffs have landed in the middle of that work," he says.

"We don't want to be pushed off course by this, we want to carry on with our rapid negotiation towards an economic agreement."

The European Union has announced it will impose retaliatory tariffs on the US after Donald Trump stepped up his global trade war.

The European Commission said it will impose "countermeasures" affecting €26bn (£21.9bn) of US goods from 1 April after US tariffs on steel and aluminium came into force today.

The bloc's tariffs will not only impact US steel and aluminium products, but also textiles, home appliances and agricultural goods.

European Commission chief Ursula von der Leyen called Trump's 25% levies on the metals coming into the US, "unjustified trade restrictions", adding the EU "must act to protect consumers and business".

"We deeply regret this measure," she added. "We are ready to engage in meaningful dialogue."

"We will always remain open to negotiation. We firmly believe that in a world fraught with geopolitical and economic uncertainties, it is not in our common interest to burden our economies with tariffs."

What about the UK?

Sir Keir Starmer said Britain would not hit back with any counter-tariffs on the US after he discussed the levies with Trump in a phone call on Monday.

A No 10 spokesperson said: "We've been very clear that when it comes to the UK steel industry we remain prepared to defend the UK's national interest where it’s right to do so. But we will continue to take a cool-headed approach."