Trump’s new global tariffs kick in at 10% – business live

From23m ago## Introduction: Trump's new tariffs kick in at 10%Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.President Donald Trump’s new tariffs have come into effect today at a rate of 10%, after the US supreme court blocked many of his import taxes on Friday.The president signed an executive order last Friday authorising the 10% tariffs just hours after the supreme court ruling. He later threatened to raise the rate to 15%, but did not officially do so by Tuesday 12.01am time in Washington, when the 10% levy came into effect.However, Bloomberg is reporting that officials in the White House are working on a formal order that will increase the rate to 15%.It comes after Trump declared this week that he can use tariffs in a “much more powerful and obnoxious way”.The new tariffs, which Trump is applying under Section 122 of the 1974 Trade Act, have triggered uncertainty with a number of US trading partners, including the UK (which negotiated a 10% rate with the US last year) and the EU.On Monday the EU paused the process of ratification of the deal it had struck with the US last July for the second time in a month, after it froze and unfroze the deal in the wake of Trump’s Greenland threats. The deal was for 15% blanket tariffs on EU imports that were inclusive of previous levies.Meanwhile in the UK, a spokesperson for Keir Starmer, when asked whether retaliatory tariffs were an option, said:> double quotation markNo one wants to see a trade war. No one wants to see a situation that’s escalated. But as I say, nothing is off the table at this stage.## The agenda- 5am GMT: EU car registrations

• 11am GMT: CBI Distributive trades for Feb
• 2pm GMT: Case-Shiller US home price index
• 2.15pm GMT: Bank of England governor to discuss MPC decision to hold interest rates at 3.75% with the Treasury CommitteeKey events- 7m ago

New 10% tariff set to last at least 150 days

• 23m ago

Introduction: Trump's new tariffs kick in at 10%Show key events onlyPlease turn on JavaScript to use this feature## New 10% tariff set to last at least 150 daysTrump’s new global 10% tariff is being applied under Section 122 of the 1974 Trade Act, which allows the president to impose the charge for 150 days without congressional approval.The president has used this approach after the supreme court ruled that he had violated an emergency-powers law to enact his “reciprocal” tariffs on imported goods from countries around the world.The new tariffs do have some exemptions, including goods that were part of the North American trade pact between the US, Canada and Mexico. The order also includes an exception for some agricultural goods.It is not clear yet what the fallout will be. The UK has not ruled out retaliation, with a spokesperson for Keir Starmer saying yesterday that “nothing is off the table”, and the chair of the EU Parliament’s trade committee, Bernd Lange, said yesterday:> double quotation markWe want to have clarity from the US that they are respecting the deal because that’s a crucial element.”Trump has warned that any country that wants to “play games” with the supreme court decision would be “be met with a much higher Tariff, and worse, than that which they just recently agreed to.” But Jim Reid, of Deutsche Bank, says it is unclear how the president might respond to developments in the UK and the EU.> double quotation markAt the moment the rate is 10% with White House officials stating that they are working on a formal order to raise to 15%. Perhaps the stacking concern is delaying things for now. Late yesterday, we also saw the WSJ and Bloomberg report that the administration was preparing new Section 232 national security investigations into several industries including batteries, telecom equipment and industrial chemicals.

> Remember that Trump’s delivering the State of the Union address tonight, so it’s possible we might get a better sense of the next steps on tariffs…net-net we still think the effective tariff rate will fall this year and that the world post-SCOTUS will see lower tariffs than the pre-SCOTUS world.## Introduction: Trump's new tariffs kick in at 10%Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.President Donald Trump’s new tariffs have come into effect today at a rate of 10%, after the US supreme court blocked many of his import taxes on Friday.The president signed an executive order last Friday authorising the 10% tariffs just hours after the supreme court ruling. He later threatened to raise the rate to 15%, but did not officially do so by Tuesday 12.01am time in Washington, when the 10% levy came into effect.However, Bloomberg is reporting that officials in the White House are working on a formal order that will increase the rate to 15%.It comes after Trump declared this week that he can use tariffs in a “much more powerful and obnoxious way”.The new tariffs, which Trump is applying under Section 122 of the 1974 Trade Act, have triggered uncertainty with a number of US trading partners, including the UK (which negotiated a 10% rate with the US last year) and the EU.On Monday the EU paused the process of ratification of the deal it had struck with the US last July for the second time in a month, after it froze and unfroze the deal in the wake of Trump’s Greenland threats. The deal was for 15% blanket tariffs on EU imports that were inclusive of previous levies.Meanwhile in the UK, a spokesperson for Keir Starmer, when asked whether retaliatory tariffs were an option, said:> double quotation markNo one wants to see a trade war. No one wants to see a situation that’s escalated. But as I say, nothing is off the table at this stage.## The agenda- 5am GMT: EU car registrations

• 2.15pm GMT: Bank of England governor to discuss MPC decision to hold interest rates at 3.75% with the Treasury Committee