Trump's sweeping global tariffs, including 104% against China, due to take effect
Show key events only Please turn on JavaScript to use this feature
Hello and welcome to our live business blog, with Donald Trump's global tariffs due to take effect on Wednesday.
The US president appears poised to push on with measures against imports to the US from almost every country in the world. The US will also go ahead with imposing a staggering 104% tariff on China from 12.01am ET (12.01pm China Standard Time) on Wednesday, the White House confirmed after Beijing did not lift its retaliatory tariffs on US goods by Trump's Tuesday noon deadline.
Trump's tariffs are due to take effect at 2pm Australia time so Asian markets can give us some indication of how things are likely to be received.
After early rallies on global stock markets, Wall Street closed down after another session of sharp losses as investors' hopes for US delays or concessions on tariffs ahead of a midnight ET deadline turned to despair.
The S&P 500 fell 1.6% after wiping out an early gain of 4.1%, which had it on track for its best day in years. That brought the index nearly 19% below its record set in February. The Dow Jones Industrial Average was down 683 points, or 1.8%, after giving up an earlier surge of 1,460 points. The Nasdaq composite was down 3.2%.
We're likely to see another bumpy day on stock markets around the world. Stick with us to follow all the latest news, reaction and analysis. Share
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Telegraph
4 hours ago
- Telegraph
Mark Carney's conversion from eco warrior to oil and gas champion
Once considered the Bank of England's greenest-ever governor, Mark Carney has seemingly undergone a Damascene conversion. During his time at Threadneedle Street, he called on the world to leave 80pc of oil and gas in the ground. But now, as Canada's new prime minister, he wants to pump as much as he can to protect the country's economy from Donald Trump's trade war. Canada is going to become an energy powerhouse, Carney told reporters last week. And he didn't mean just in renewables. 'When I talk about being an energy superpower, I mean in both clean and conventional energies,' he said. 'And yes, that does mean oil and gas. 'It means using our oil and gas here in Canada to displace imports wherever possible, particularly from the United States. 'It makes no sense to be sending that money south of the border or across the ocean, so yes, it also means more oil and gas exports – without question.' These comments are remarkable given they come from a man who repeatedly called for an end to drilling during his tenure as Bank governor between 2013 and 2020. One such call came in a 2015 speech at Lloyds of London, when he described 80pc of the world's known fossil fuel reserves as 'unburnable'. He said: 'The catastrophic impacts of climate change will be felt beyond the traditional horizons of most actors – imposing a cost on future generations that the current generation has no incentive to fix.' Given Carney's influence, his dramatic warnings inevitably shaped UK government decision-making at the time, as he championed the cause of net zero to a total of five different energy secretaries. Claire Perry, who served as Tory energy minister between 2017 and 2018, recalls: 'Mark had a huge impact on global climate issues. 'He created all the momentum around carbon markets and energy transition investment.' Sir Ed Davey, the Liberal Democrat leader who served as energy secretary in the 2012-15 coalition government, echoes this. 'Mark Carney had a real understanding of where the wind was blowing globally on energy, and recognised the risks to the economy of over-reliance on fossil fuels,' he says. After leaving the Bank, Carney also wrote a book called Value(s): An Economist's Guide to Everything That Matters, where he advocated powerfully for the introduction of carbon taxes. 'One of the most important initiatives is carbon pricing,' he wrote. 'The best approach is a revenue-neutral, progressive carbon tax.' The UK has since faithfully implemented that plan with a raft of carbon levies on consumers and industry, which many argue has left Britain burdened by some of the highest energy prices in the world. 'Energy superpower' Jump ahead to 2025, however, and Carney – now a Canadian politician instead of a British bureaucrat – has adopted a wildly different approach. Immediately after succeeding Justin Trudeau as prime minister and winning Canada's election in April, he wasted no time in signing a directive cancelling Canada's existing carbon tax and confirming rebates for many of those who had paid it. He's now gone even further by pledging to build oil and gas pipelines, LNG export terminals, and to relax the emissions restrictions that have angered many of Canada's biggest fossil fuels producers. And his plans don't stop there. 'All this is not enough just to make Canada an energy superpower,' he said. 'It's not enough to build our full potential. 'It's not enough to truly get incomes growing across the country. We can do much more. We are going to be very, very ambitious. Build, big, build, bold.' Carney, who also previously ran the Bank of Canada, reconciles such ambitions with simultaneous pledges on green technologies that could theoretically reduce emissions, such as carbon capture and storage. But these will take years or decades to implement. According to experts, Carney's conversation has been driven by the economy, as oil and gas accounted for up to 7.5pc of the country's GDP in recent years. In 2023, crude oil exports alone were valued at $124bn, representing 16pc of Canada's total exports. That figure rises to 20pc if gas exports are included. What's more, Canada has about 171bn barrels of oil in recoverable reserves – far greater than America's 44bn. It means Canada can rely on oil for decades, whereas US production is expected to peak in the next few years. However, most of that oil and gas comes from one province, Alberta. That region alone holds billions of dollars, although its voters blame Carney's and Trudeau's Liberal party for climate restrictions that curbed economic growth. A recent opinion piece for Canada's Globe and Mail by Preston Manning, a retired politician who helped found Canada's conservative movement, warned that his 5m fellow Albertans had had enough of rule from Ottawa and were considering secession. Some go further. Alberta, they point out, shares a border with the US and perhaps has more in common with the likes of Texas than Toronto. These growing tensions have created a political opportunity for Alberta's conservative leaders. Independence referendum Less than 24 hours after Carney's election, Danielle Smith, Alberta's premier, introduced a bill to the province's legislature, making it much easier for a citizens' movement to trigger an independence referendum. The new rules slash the number of citizens' signatures required to trigger a referendum, from 600,000 to 177,000 and give petitioners 120 days to collect them rather than the previous 90. She has done so to pile pressure on Carney, handing him a list of nine energy-related federal laws she wants overhauled to unleash more drilling in Alberta. 'We cannot keep the over $9 trillion worth of oil wealth we have in the ground,' she said. 'Mark Carney has acknowledged that the federal government must address key policy barriers. 'That must include abandoning the unconstitutional oil and gas production cap, repealing the tanker ban, and scrapping Canada's net-zero power regulations. 'I believe in a strong and sovereign Alberta within a united Canada, but we cannot persist with the status quo. I won't allow that status quo to continue.' Smith is also exploiting the tensions generated by Donald Trump, the US president, whose talk of making Canada the 51st state resonates with some Albertans. She sees her demands as a test of the scale of Carney's commitment to oil and gas: 'Given his past actions, I've asked myself what version of Mark Carney are we going to get. 'Will we get the pragmatic Bank of Canada governor Mark Carney? Or will we get the environmental extremist keep-it-in-the-ground Mark Carney? 'I don't know the answer yet. He's saying some of the right things, but we need to see meaningful action.' Such tensions have been around for a long time. What Canada's politicians say and do are often very different things, says Brendan Long, a leading energy analyst and Canadian, whose new book Energy Shocks, compares the politics of energy in the UK, US and Canada. He points out that Canada has a long history of electing prime ministers with stridently green manifestos who then preside over huge increases in oil and gas production. 'While previous premier Justin Trudeau had explicitly anti-fossil fuel agendas, domestic Canadian oil and gas production grew dramatically under his leadership,' he said. 'Today, Canada is ranked fourth in terms of global oil production at 5.8m barrels of oil per day and growing.' By contrast, Long points out that the UK is the only large global oil producer to have deliberately cut its production in recent years, signalling the long-standing net-zero legacy left by Carney. 'It means that while Canada's oil and gas industry is ramping up production under Carney, the UK remains aligned with the anti-oil and gas ideology he promoted when he was the governor of the Bank of England,' he says.
Reuters
4 hours ago
- Reuters
US warship arrives in Australia ahead of war games, summit
SYDNEY, June 14 (Reuters) - A key U.S. warship arrived in Australia on Saturday ahead of joint war games and the first summit between Prime Minister Anthony Albanese and President Donald Trump, which is expected to be dominated by military issues. The America, the U.S. Navy's lead amphibious assault ship in the Indo-Pacific, entered Sydney Harbour as the first of three ships in a strike group carrying 2,500 sailors and marines, submarine-hunting helicopters and F-35B fighter jets. More than 30,000 personnel from 19 militaries have begun to arrive in Australia for Talisman Sabre, the largest Australian-U.S. war-fighting exercise. It will start next month and span 6,500 km (4,000 miles), from Australia's Indian Ocean territory of Christmas Island to the Coral Sea on Australia's east coast. The commander of the America, Rear Admiral Tom Shultz, said exercising in Australia was critical for the U.S. Navy's readiness, while the Australian fleet commander, Rear Admiral Chris Smith, said the "trust and robust nature" of the bilateral relationship allowed the two allies to deal with change. "The diversity of how we view the world is actually a real great strength in our alliance," Smith told reporters, adding that Australia also had strong relationships with nations across the region. Albanese and Trump are expected to meet on the sidelines of a summit in Canada of the Group of Seven economic powers, which starts on Sunday. Washington's request for Canberra to raise defence spending to 3.5% of gross domestic product from 2% is expected to dominate the discussion. The Pentagon said this week it was reviewing its AUKUS nuclear submarine partnership with Australia and Britain. Australian Defence Minister Richard Marles said on Saturday this was "not a surprise", adding the two countries continued to work closely. But Michael Green, a former national security adviser to President George W. Bush, said it was unusual for the review into AUKUS to be conducted solely by the Pentagon and that Trump might link it to the spending request or to tariffs. "It is unusual to make the review unilateral and public right before a summit, even if the Australian side knew. That is not good alliance management - it jams the Australian side," said Green, president of the United States Studies Centre in Sydney. Support for AUKUS in the Congress and U.S. Navy is considerable, however, and the review is unlikely to result in the submarine program being cancelled, he said. India will participate for the first time in Talisman Sabre, along with a large contingent from Europe, said the exercise's director, Brigadier Damian Hill. Australia, Singapore, the U.S. and Japan will hold large-scale live firings of rocket and missile systems, he said. "It is the first time we are firing HIMARs in Australia, and our air defence capability will work alongside the United States Patriot systems for the first time, and that is really important," Hill added.
The Guardian
5 hours ago
- The Guardian
Albanese to spruik free trade as salve to turmoil at G7 but Australia still struggling to secure meeting with Trump
Anthony Albanese will tell Donald Trump and the leaders of the world's biggest economies that free trade can help calm rising global insecurity, as next week's G7 summit looks set to be dominated by conflict in the Middle East. The prime minister will visit technology giant Amazon's Seattle headquarters on Sunday, on his way to talks with world leaders in Alberta next week, a trip he hopes will include his first face-to-face meeting with the US president. Amazon and the federal government are building new top-secret data centres in Melbourne, set to allow the country's military and intelligence agencies to collaborate with overseas partners on highly secured networks. But, after Israel's strikes on Iran and a retaliatory barrage of missiles ordered by Tehran, the meeting in Kananaskis is expected to focus on the fallout from the Middle East crisis. Sign up for Guardian Australia's breaking news email Albanese will tell business leaders on Sunday that the summit will be focused 'on the significant security and economic challenges facing the world'. 'But we should not lose sight of the profound opportunities that can be realised by closer and deeper cooperation,' he will say at the event hosted by Australia's ambassador to the US, Kevin Rudd. He will talk up the government's plans on energy security and critical minerals, expected to be offered up in negotiations with the US as Australia seeks an exemption from Trump's punishing aluminium tariffs. 'We will continue to advocate for free and fair trade, for the jobs it creates and the investment it drives,' Albanese will say. 'We will hold true to the principles of shared opportunity and collective responsibility that are vital to building a more secure, prosperous and stable region – and world.' The federal government has so far failed to lock in a meeting with the US president on the sidelines of the G7. Albanese is part of a long list of world leaders seeking their first face time, including the European Union's Ursula von der Leyen and the Mexican president, Claudia Sheinbaum. Sign up to Breaking News Australia Get the most important news as it breaks after newsletter promotion The Pentagon's review of the Aukus nuclear submarines agreement will be a top agenda item if Albanese and Trump hold talks. The shadow defence minister, Angus Taylor, said Albanese should 'do whatever is necessary to get a meeting with the president at this time'. So far the Amazon project, dubbed the Top Secret Cloud, will see the federal government fund construction of new data centre facilities and pay for their use. Additional investments are expected, as Albanese called the deal a demonstration of joint Australian-US ties. The world's largest cloud computing company, Amazon already has significant deals to provide national security systems in the US and United Kingdom. The data centres provide access to Amazon cloud products as well as critical backup capabilities for an outage event taking government servers offline. Albanese is expected to meet with executives from companies including BHP, Diraq, Trellis Health, Airwallex and Anthropic while in the US. The G7 host, the Canadian prime minister, Mark Carney, has ditched the practice of a lengthy joint statement from summit participants. Trump objected to a series of similar communiques in his first term. The Department of Foreign Affairs and Trade issued updated travel advice for Israel on Friday, warning nowhere in the country was safe for travel due to the volatile security situation.
