Trump tariffs latest: Starmer warns ‘world as we knew it has gone’ – while EU readies retaliatory measures

US commerce secretary Howard Lutnick has told CBS news that the steeper tariffs due to be imposed on 9 April will not be postponed.

Mr Lutnick was asked about whether president Donald Trump would follow through on the harsher measures. He replied: “They are coming, he announced it and he wasn’t kidding. The tariffs are coming, of course they are”.

He also said that islands with few or no inhabitants, such as Penguin Island, had to be included in the tariffs in case another country tried to use them as a loophole.

Prime minister Sir Keir Starmer has told EU leaders he is “disappointed” by the tariffs imposed by president Donald Trump.

Sir Keir spoke with EU commission president Ursula von der Leyen, German chancellor Olaf Scholz, and leader of the German Christian Democratic Union party Friedrich Merz.

In a read-out of the discussions, a Downing Street spokesperson said: “Discussing the announcement of additional tariffs by the United States, they all agreed that – as with defence and security – this is a new era for the global economy. Europe must rise to meet the moment and ensure the impact on hard-working people is minimised, while working closely with other countries to help maintain wider economic stability.

“The prime minister reiterated that he was disappointed by the new tariffs and stressed he will continue to act in the UK’s national interest – remaining calm while preparing for all eventualities.

“He updated on his plans to go further and faster to strengthen the UK’s economy and ensure it is as resilient as possible and can withstand these kinds of global shocks. He added that it would be important for the UK to strengthen its trading relationships with others across the globe at the same time.

“The prime minister agreed to keep in close contact.”

China has announced 34 per cent tariffs on imported US goods in the wake of president Donald Trump’s increased taxes on Chinese goods coming into America.

Who will do the best or worst out of the trade war? Data correspondent Alicja Hagopian and political correspondent Millie Cooke take a look.

Previously, retaliatory tariffs from China only covered specific industries such as fuel and agricultural products. Now, all US exports to China will be hit.

The US imports far more from China than it exports. In 2024, goods exported to China were worth $143.5bn, according to the US Trade Representative office.

Meanwhile, the US bought three times as many goods ($438.9bn) in the same period.

Taiwan’s President Lai Ching-te has offered zero tariffs as the basis for talks with the US, pledging to remove trade barriers rather than imposing reciprocal measures and saying Taiwanese companies will raise their US investments.

President Donald Trump announced across-the-board import tariffs on Wednesday, with much higher duties for dozens of trading partners, including Taiwan, which runs a large trade surplus with the U.S. and faces a 32 per cent duty on its products.

The US tariffs, however, do not apply to semiconductors, a major Taiwanese export.

In a video message released by his office after meeting executives from small and medium-sized companies at his residence, Taiwan’s president said given Taiwan’s dependence on trade the economy would inevitably have a hard time dealing with the tariffs, but that he thought the impact could be minimised.

“Tariff negotiations can start with ‘zero tariffs’ between Taiwan and the United States, with reference to the U.S.-Canada-Mexico free trade agreement,” Lai said.

Taiwan’s cabinet is considering what large-scale agricultural, industrial and energy purchases to make from the United States, while the defence ministry has already put forward its weapons purchase plans, he added.

“All purchases will be actively pursued,” Lai said.

India does not plan to retaliate against US president Donald Trump’s 26 per cent tariff on imports from the Asian nation, an Indian government official has told Reuters.

Prime Minister Narendra Modi’s administration has looked into a clause of Trump’s tariff order that offers a possible reprieve for trading partners who “take significant steps to remedy non-reciprocal trade arrangements”, said the official, who declined to be named as the details of the talks are confidential.

Reuters reported last month that New Delhi is open to cutting tariffs on U.S. imports worth $23 billion.

The EU commission president Ursula von der Leyen has said the Europe “stands ready to defend its interests through proportionate countermeasures if necessary” after US president Donald Trump imposed new tariffs on goods coming into America.

Ms von der Leyen issued a statement on Sunday, following a call with UK prime minister Sir Keir Starmer.

The read-out said: “The president expressed her deep concern over the tariffs announced by president Trump on April 2 and the harm they pose to all countries – both through their direct and indirect effects, including on the world’s poorest nations.

“Recognising that the tariffs represent a major turning point for the United States, she reaffirmed the EU’s commitment to engaging in negotiations with the US, while making clear that the EU stands ready to defend its interests through proportionate countermeasures if necessary. At the same time, she emphasised her determination to work with partners in responding to this new reality for the global economy, acknowledging that each trading partner will act in accordance with its own priorities.”

More than 50 countries have reached out to the White House to begin trade negotiations, US National Economic Council Director Kevin Hassett has said.

Mr Hassett also denied that president Donald Trump’s tariffs were also an indirect means to pressure the central bank to cut interest rates

In a separate interview to US broadcast media, US Treasury Secretary Scott Bessent downplayed the stock market drop since Trump announced the tariffs and said there was “no reason” to anticipate a recession based on the tariffs.

Israeli Prime Minister Benjamin Netanyahu said he hopes US President Donald Trump will ease tariffs imposed on Israel when the two meet in Washington this week.

Under a sweeping new tariff policy announced by Trump, Israeli goods face a 17 per cent tariff.

Netanyahu departs for Washington on Sunday for an impromptu visit with Trump that is expected to take place on Monday, officials said.

He said in a statement that the talks will cover Israeli hostages still held in Gaza after 18 months, achieving victory in Gaza and the tariff regime on Israel.

“I hope that I will be able to help on this issue. That is the intention,” Netanyahu said. “I am the first international leader, the first foreign leader, who will meet with President Trump on the issue, which is so important to the Israeli economy.

“There is a long line of leaders who want to do this regarding their economies. I think that it reflects the special personal link, as well as the special ties between the U.S. and Israel, which is so vital at this time.”

Italian Prime Minister Giorgia Meloni promised on Sunday to shield businesses that suffered damage from the tariffs imposed by US President Donald Trump.

“We did not, of course, agree with the decision of the United States, but we are ready to deploy all the tools – in terms of negotiations and economically – needed to support our businesses and sectors that could be penalised,” Meloni said in a video message to a congress of the League party, a coalition ally.

Elon Musk has revealed hoped for a “zero-tariff zone” in talks with Italian far-right leaders at a conference on Saturday.

The Tesla boss spoke to Italy League leader Matteo Salvini – the deputy prime minister of Giorgia Meloni’s conservative government.

Musk said he hoped the US and Europe could create “a very close, stronger partnership” and reach a “zero-tariff zone,” Sky News reported.

He added that ideally there will be a “zero-tariff zone in the future with a free trade zone between Europe and North America.”