British stock markets continue to fluctuate as investors continue to navigate Donald Trump’s tariffs amid fears of a possible global trade war.
The announcement last week sent the markets into freefall, as the US President announced a swathe of tariffs on countries across the globe. Markets responded positively this week to his announcement of a 90-day reprieve for most countries but an escalation in a tariff war with China continues to fill investors with unease. The United States has maintained its position on China, slapping 104% tariffs on Beijing who have responded with 125% tariffs of their own on US goods entering the country. The Chinese finance ministry said: “The US’s imposition of abnormally high tariffs on China seriously violates international trade rules, basic economic laws and common sense, and is completely a unilateral bullying and coercion.”
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The continued economic aggression has led to fears that the world could soon be subjected to a trade war that will see no country left unharmed.
China has so far matched measures introduced by the White House, as opposed to escalating substantially. But the fact that Beijing holds trillions of dollars of US debt gives them a weapon at their disposal which could wreak havoc on the US economy.
The Liberal Democrats have called on Prime Minister Sir Keir Starmer to hold a summit of world leaders to develop a coherent strategy to deal with the threat of additional US levies.
Leader Sir Ed Davey said: “Donald Trump’s nonsensical economic policies have thrown the world economy into crisis and put thousands of British jobs at risk. Now is not the time for complacency.
“The Prime Minister should show the White House that we have alternatives by hosting a summit of world leaders and building an economic coalition of the willing.
“Both Kemi Badenoch and Nigel Farage want the UK to go cap in hand to Trump and beg him for a trade deal. That is not the way to stand up for Britain or our national interest.
“We need to show a united front and put pressure on the US to not just make this 90-day pause permanent but remove their remaining tariffs on British businesses and our car industry completely.
“The best way to end this trade war for good is by standing tall with our allies, not cowering in the corner.”
