SCARES & STRIPES

UK firms react as US tariffs spark chaos around world

- HANNAH RODGER

THE global economy plunged further into chaos yesterday as Donald Trump's tariff trade war started to bite.

It comes after the US President announced a basic levy of 10 per cent on imports to America from the UK, with higher rates for other countries and specific sectors.

The move has seen financial markets plummet, with billions lost from pension funds, and companies stop shipments to the US, prompting fears of a worldwide recession.

Yesterday, UK car maker Jaguar Land Rover announced it was stalling all its deliveries to America after Trump slapped a 25 per cent tax on vehicle imports, and US company shares have fallen to their lowest price since the pandemic.

The chaos has seen Trump compared to short-lived prime minister Liz Truss, who infamously caused mortgage turmoil and bond market chaos with her disastrous mini-budget alongside then chancellor Kwasi Kwarteng in 2022.

Labour MP Neil Coyle said: "Trump is at risk of damaging the US economy in the same way Truss damaged the UK"

China, which has promised to match Trump's 34 per cent tariffs for its goods, has been highly critical of the taxes which had "seriously infringed upon the legitimate rights and interests of all countries, seriously violated the rules of the World Trade Organisation, seriously damaged the rules-based multilateral trading system, and severely impacted the stability of the global economic order".