Key events
Trump rejects EU ‘zero-zero’ tariff proposal
The European Union said on Monday it had offered “zero-for-zero” tariffs to the US weeks before Trump’s tariff announcement and was in negotiations with the administration.
But Donald Trump didn’t appear keen on the offer, telling reporters zero-zero tariffs were not going to happen.
Trump said selling energy to the EU would be a key focus as his administration seeks to eliminate a trade deficit with the bloc.
“The European Union’s been very bad to us,” Trump said, accusing European nations of not buying enough US goods.
They’re going to have to buy their energy from us, because they need it and they’re going to have to buy it from us. They can buy it – we can knock off $350 billion in one week.
Opening summary
Hello and welcome to our coverage of the global stock market response to Donald Trump’s trade tariffs following the huge falls on Asian markets yesterday.
Extreme volatility plagued global stock markets on Monday, with Wall Street swinging in and out of the red as Trump defied stark warnings that his worldwide trade assault will wreak widespread economic damage, comparing new US tariffs to medicine.
A renewed sell-off began in Asia, before hitting European equities and reaching the US. It was briefly reversed amid hopes of a reprieve, only for Trump to threaten China with more steep tariffs, intensifying pressure on the market.
China said Monday it would not cave in to threats after Trump vowed an additional 50% tariffs on its goods if Beijing did not retract planned countermeasures.
“We have stressed more than once that pressuring or threatening China is not a right way to engage with us,” Liu Pengyu, a spokesperson for Beijing’s embassy in the US, told Agence-France Presse. “China will firmly safeguard its legitimate rights and interests.”
The US president later dampened hopes of a reprieve further when he told reporters in the Oval Office he was “not looking at” pausing tariffs to allow for negotiations.
During a bilateral meeting with Israel’s prime minister, Benjamin Netanyahu, Trump was asked if the tariffs were permanent or open to negotiations. Trump responded: “They can both be true, there can be permanent tariffs and there can be negotiations.”
“There are things we need beyond tariffs, like open borders,” Trump insisted – once again hitting out at China, claiming “China is a closed country” charging too high tariffs. He did confirm the US was talking to Beijing about the tariffs.
It looks set to be another bumpy ride on the markets today. Follow along for the latest news, reaction and analysis.