UK deal lifts hopes for US, China talks

MOST equities rose yesterday on growing optimism that the worst of Donald Trump's trade war is past after he reached a deal with Britain and suggested he could lower tariffs on China as officials prepare for high-stakes talks this weekend.

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The mood among investors has improved substantially since the US president unveiled his “Liberation Day” blitz last month, sending markets spinning and fuelling global recession fears. Several countries have lined up to hold talks with Washington to avert the worst of the duties that range from 10% to as high as 145% on China — Trump’s main target.

On Thursday, Britain became the first to announce a deal that reduces tariffs on British cars and lifts them on steel and aluminium, while in return Britain will open up markets to US beef and other farm products. While there are several areas that still need discussing, Trump and Prime Minister Keir Starmer hailed the “historic” deal, with the US president saying it should be seen as a template for others.