Tariffs latest: Beijing takes fight to Trump - as global markets rally after tariff U-turn

The FTSE 100 has risen by more than 4% this morning.

These market figures follow a significant rally for markets in the US and Asia, after Donald Trump said he would be delaying tariffs on most nations for 90 days while raising his tax rate on Chinese imports to 125%. 

Ray Dalio, the billionaire founder of the world's largest hedge fund, has called for a US deal with the Chinese on tariffs.

He welcomed Donald Trump's tariff reversal on X, saying he had "stepped back from a worse way" of dealing with US debt and trade imbalances - one of the president's stated aims of his tariff policy. 

Negotiating is a "better way", he said, and a deal with Beijing could be a "win-win".

Dalio, 75, founded Bridgewater Associates, an American investment management firm, in 1975 and is worth an estimated $14bn. 

Donald Trump's tariffs has dominated the US and international media since his "liberation day" announcement last Wednesday.

His favourite outlet Fox News has focused heavily on the aftermath of his policies.

And it may have played a part in prompting Trump to reverse the policy, according to a former British ambassador to Washington.

Speaking to Anna Jones on Sky News Breakfast, Sir Peter Westmacott says when Trump has done something in the past that spooked he tended to "think again".

"Somebody obviously got to him, as well as the television coverage, and made him think he better change course," Westmacott says.

Asked if the president's tariffs had damaged his authority, he added: "This is a president who we know was going to be unpredictable and impulsive and a bit whimsical.

"He will do what he wants to do."

He says when it comes to the people who voted for him "this is what they wanted". 

"They wanted a strong leader and they don't really mind the basis upon which he makes his decisions," he adds.

Donald Trump's tariffs climbdown is an "important step towards stabilising the global economy", Ursula von der Leyen has said.

In a statement, the European Commission president says the EU still want trade talks with the US, but will "step up work to lift barriers in our own single market" - which she describes as "our anchor of stability and resilience".

Here's her full statement:

Governments across the EU will be breathing a sign of relief this morning that they now face Trump's 10% baseline tariff after his reversal, down from 20%.

Chinese foreign ministry spokesman turns to the effect Donald Trump's tariffs are having on the rest of the world.

Lin Jian says the US is holding the throats of other countries, and that Washington's "threat" is an attempt to "coerce" countries into making concessions.

He also says ties between China and Spain are an "integral" part of Beijing's broader relationship with the EU.

These comments come after the Spanish government said the country would pursue closer trade ties with China in the interests of its citizens and of the EU, rejecting a US warning that moving closer to Beijing would be "cutting your own throat".

After a few questions on other topics, the briefing comes to an end.

Donald Trump has said that he is waiting for a call from China to begin trade talks, and Chinese foreign ministry spokesman Lian Jian is asked whether there has been any contact between the two countries or if China will call.

His response is emphatic: "Pressuring, threatening and extorting China is not the right way to deal with us... "If the US wants to talk it should show an attitude of equality, respect and mutual benefit.

He repeats that if the US is determined to fight a trade war "China's response will continue to the end".

The Chinese foreign ministry briefing begins, with spokesman Lin Jian asked about tariffs immediately.

He says the US is using tariffs as a "weapon to exert maximum pressure" and "seek selfish gains".

He says: "This move is against the whole world.

Referring to Beijing's 84% retaliatory tariff, he says the "necessary countermeasures against the US's bullying moves" are aimed at protecting Chinese sovereignty, international fairness and the common interests of the international community.

He predicts the US move will "end in failure".

"Tariff wars and trade wars have no winner," he says. "China does not want to fight them but has no fear when they come our way."

He says if the US is determined to fight then China's response "will continue to the end".

The Chinese foreign ministry is holding a regular news briefing as the country's trade war with the US escalates.

You can watch the briefing here - and we'll bring you any tariff updates as we get them.

By Sarah Taaffe-Maguire, business and economics reporter

These market updates should come with a whiplash warning.

After steep drops yesterday, the UK's benchmark index is now posting sizeable gains. The index of the 100 most valuable companies listed on the London Stock Exchange - the FTSE 100 - rose 1% on the open.

The bigger FTSE 250 - comprising more companies based in the UK - was up a big 2%. 

With a 90-day pause on US retaliatory tariffs, we may see calmer financial market conditions, but maybe don't take your seatbelt off yet. 

UK stocks followed similar rallies for European markets this morning and Asian markets overnight.

There's been a lot to unpack in the past 24 hours.

To cut through it all, here's what Donald Trump's tariff pause entails:

'Reciprocal' tariffs on hold

• Higher tariffs that took effect yesterday on 57 trading partners will be paused for 90 days
• These include the EU, Japan and South Korea, all of which will face a baseline 10% duty instead
• Countries that already had a 10% levy imposed since last week - such as the UK - aren't affected by the pause

China tariffs increased

• Trump imposed a higher 125% tariff on China
• That's in addition to levies he imposed during his first term
• China has hit the US with 84% tariff, after tit-for-tat escalations

No change for Canada or Mexico

• Canadian and Mexican goods will remain subject to 25% fentanyl-related tariffs if they don't comply with the US-Mexico-Canada trade agreement's rules of origin
• Compliant goods are exempt

Car and metal tariffs remain

• Trump's pause doesn't apply to the 25% tariffs he levied on steel and aluminium in March and on cars (autos) on 3 April
• This 25% tariff on car parts does not come into effect until 3 May

Sectors at risk

• Copper, lumber, semiconductors, pharmaceuticals and critical minerals are expected to be subject to separate tariffs, in the same way autos are