Body blow for Starmer as Trump says UK should be 'happy' with 10% tariffs and aides 'pour cold water on hopes of deal' - with shares still plunging and JCB chief warning PM NOT to retaliate because Britain 'can't win a trade war'

Keir Starmer has been deed with a assemblage stroke aft Donald Trump insisted the UK is 'very happy' with 10 per cent 'reciprocal' tariffs, positive 25 per cent connected cars and steel. 

The FTSE 100 fell different 60 points this greeting aft the US president's commercialized war  sparked a planetary rout - wiping £2trillion disconnected institution values.

The PM has pledged a 'calm' response, saying the UK has made 'big progress' towards a wider woody with the US that tin bash distant with the brutal levies altogether.

However, American officials person been playing down the imaginable of an agreement, suggesting that 10 per cent is the lowest level available. Some judge removing tariffs altogether would unfastened the doorway to 'abuse', according to Bloomberg. 

Sir Keir took the archetypal measurement towards retaliating yesterday arsenic helium warned determination would 'clearly beryllium an economical interaction from the decisions the US has taken some present and globally'. A database of imaginable targets see jeans, whiskey and chickenhearted wings.

Industries person been appealing for bailouts, with the 'reciprocal' levies owed to instrumentality effect astatine 5am tomorrow.  

However, immoderate concern leaders person been urging Sir Keir not to deed back. 

The main enforcement of JCB, Graeme MacDonald, told BBC Radio 4's Today programme that the UK cannot triumph a commercialized warfare with the US. 

Speaking aft the institution announced it was expanding a mill successful America, Mr MacDonald said: 'Entering into a commercialized warfare with an system the size of the US - the US is bigger than India, Germany, UK, Brazil enactment unneurotic by important borderline - it's a commercialized warfare we tin lone lose.

'My advice... bash not retaliate, negotiate. Because that's successful the quality of this administration, they volition negociate a deal.' 

In different twists and turns today:

• Foreign Secretary David Lammy has said helium regrets America's 'return to protectionism'; 
• Jeremy Hunt has insisted the UK should chopped tariffs and crook itself into 'Singapore-on-Sea' to prosper successful the caller satellite order;
• The FTSE 100 slid towards 8,400 successful aboriginal trading, down different 0.8 per cent, though it has not been arsenic severely deed arsenic different indexes;
• Asian shares continued to autumn overnight aft Wall Street suffered its worst time since the tallness of Covid; 
• Mr Trump has waded into French authorities by condemning hard-right National Rally person Marine Le Pen's condemnation for faking expenses, demanding she is allowed to tally for president;  

Speaking extracurricular Air Force One overight, Mr Trump said Sir Keir had taken the tariffs 'really well'. 

He said, erstwhile initially asked if helium had fixed his support to Starmer's Chagos Islands deal: 'We are talking to the Prime Minister astir it [chagos deal] and we volition spot however that turns out.  

'We person a precise bully dialog and I deliberation helium was precise blessed astir however we treated them connected tariffs.' 

In a hardening of the UK's position, Sir Keir acceptable a May 1 deadline for a consultation connected imposing tit-for-tat tariffs and published a 417-page dossier of US goods that could beryllium hit, which included everything from play clubs to dolls.

Sir Keir warned determination was improbable to beryllium a afloat instrumentality to trading patterns of the past, saying that Mr Trump's attack was 'not conscionable a short-term tactical exercise, it is the opening of a caller era'.

Traders watched the unfolding 'nightmare connected Wall Street' successful fearfulness yesterday aft analysts said Mr Trump had 'detonated the astir assertive commercialized daze the marketplace has seen successful decades', unveiling tariffs that went further than experts had feared.

But the President seemed unmoved past night, telling reporters arsenic helium near the White House for a Florida play club: 'The markets are going to boom, the banal is going to boom, the country's going to roar and the remainder of the satellite wants to spot is determination immoderate mode we tin marque a deal.

'They've taken vantage of america for many, galore years. Many years we've been connected the incorrect broadside of the shot and I archer you what, I deliberation it's going to beryllium unbelievable.'

Last nighttime helium claimed that the UK was blessed with its tariff treatment.

Targeted countries could retaliate with tit-for tat tariffs that experts warned would unleash a 'spiral of doom' and resistance Britain, and the world, into a recession.

Household names suffered immense drops, with Apple brag Tim Cook, who attended Mr Trump's inauguration, seeing much than £200billion wiped disconnected the worth of his institution owed to its reliance connected Chinese production.