Sir Keir Starmer is 'very happy' with UK tariffs, Trump says - as stocks take £2TRILLION hit and world is pushed to brink of trade war

Donald Trump said Sir Keir Starmer was 'very happy' with however the US treated the UK connected tariffs -  as helium pushed the satellite to the brink of a full-scale commercialized war. 

Stock markets took a £2trillion deed yesterday after the US president slapped immense tariffs connected America's trading partners, stoking wide fears of a recession.

He imposed 10 per cent 'reciprocal tariff' connected the UK - but deed the remainder of the satellite overmuch harder - with the European Union facing a 20 per cent charge. 

The rout was a devastating stroke to millions of British savers who person wealth tied up successful shares done their pensions, Isas and different investments.

Keir Starmer 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'.

The Prime Minister said helium had made 'big progress' towards a commercialized woody with Mr Trump which could mitigate the interaction of the tariffs and helium remained focused connected securing a deal, informing that 'nobody wins successful a commercialized war'.

However, speaking extracurricular Air Force One connected Thursday evening, 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.'

But, successful 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.

 During a code successful the White House's Rose Garden connected Wednesday evening, Mr Trump imposed a broad 10 per cent tariff connected astir goods from each countries. But immoderate nations look adjacent steeper levies, depending connected the size of their commercialized shortage with the US.

Asian countries were deed hardest, with China, Vietnam and Japan facing tariffs of 34 per cent, 46 per cent and 24 per cent respectively. 

Despite the UK getting disconnected comparatively lightly, receiving the lowest levy of 10 per cent, concern curate Jonathan Reynolds warned that Mr Trump's tariffs inactive airs a menace to Britain done the interaction connected planetary trade.

Ministers present are considering imaginable bailouts for the worst-hit sectors, with experts informing that 25,000 jobs could beryllium astatine hazard conscionable successful the car industry, which was deed with 25 per cent tariffs.

Kemi Badenoch urged the PM to determination faster successful striking a woody with the US. The Tory person said past showed Mr Trump's tariffs 'will not marque the US wealthier but they volition marque each of america poorer'.

Mr Trump timed his Rose Garden code for aft the markets had closed connected Wednesday, truthful helium did not person to spot stocks plunge portion helium delivered his 'make America affluent again' policy.

That meant markets reacted 'violently' to the quality connected opening yesterday. In London, the FTSE 100 scale of blue-chip stocks fell 1.5 per cent and the domestically focused FTSE 250 slumped 2.2 per cent.

Germany's Dax scale was down 3 per cent and France's CAC 40 dropped 3.3 per cent. Wall Street, however, was worst hit. The benchmark S&P 500 Index fell astir 5 per cent and the Dow Jones Industrial Average dropped astir 4 per cent.

The tech-focused Nasdaq Composite tumbled much than 5 per cent and suffered its worst show since the aboriginal days of the Covid-19 pandemic. 

An scale tracking planetary stocks plummeted 3.3 per cent, wiping astir £2trillion disconnected its marketplace capitalisation, investigation by UK stockbroker Quilter showed.

Fears of recession sent the lipid terms tumbling with West Texas Intermediate – the main US benchmark – down much than 7 per cent to arsenic debased arsenic $66 a barrel. 

The London benchmark – Brent Crude – fell much than 5 per cent to beneath $70 a barrel. Nigel Green, CEO of planetary fiscal advisory deVere Group, said: 'This is however you sabotage the world's economical motor portion claiming to supercharge it.

'It's a seismic time for planetary trade. Trump is blowing up the post-war strategy that made the US and the satellite much prosperous, and doing it with reckless confidence.

'Tariffs are taxes – plain and simple. These tariffs will

push prices higher connected thousands of mundane goods – from phones to nutrient – and that volition substance ostentation astatine a clip erstwhile it is already uncomfortably persistent.'

Shares successful Apple plunged much than 9 per cent. The tech elephantine makes 90 per cent of its products successful China. 

Amazon shares fell 9 per cent arsenic galore of the products sold straight by the online retailer are besides sourced successful China. Jeff Bezos's institution is besides susceptible to changes successful user behaviour.

Nike was deed hard, arsenic Americans are large buyers of its trainers and sportswear, which are made successful Asian countries facing the steepest tariffs. Shares dropped much than 14 per cent.

Luxury groups listed successful Paris including LVMH, the proprietor of Louis Vuitton, and decorator Christian Dior, some saw their banal plummet 5.6 per cent connected fears that a recession volition discourage adjacent affluent shoppers.

Stephen Innes of SPI Asset Management said that Trump had 'detonated the astir assertive commercialized daze the marketplace has seen successful decades'. Olu Sonola, caput of US economical probe astatine Fitch Ratings, said: 'Many countries volition apt extremity up successful a recession.'

And seasoned City commentator David Buik added: 'Markets hatred uncertainty and contiguous they person it successful spades. The marketplace has nary thought whether these are Trump's opening shots.'