US-UK trade deal still stands, says Business Secretary

Chris Price

Wed, February 25, 2026 at 3:16 AM GMT+9 25 min read

Peter Kyle, the Business Secretary, said tariffs were “lose-lose”. - Wiktor Szymanowicz/Future Publishing

Peter Kyle, the Business Secretary, has said he is confident Britain’s trade deal with the US still stands after Donald Trump’s 10pc global tariffs took effect.

“I can say with some confidence… that the [deal] that we have negotiated ⁠stands,” ⁠Mr Kyle told a parliamentary committee.

It comes after the White House said there was “no change of heart” regarding the US President’s plan to impose a 15pc global tariff rate under Section 122 statute, despite the US starting to collect lower levies at just 10pc earlier today.

Mr Trump first announced the new tariff after the Supreme Court ruled to strike down his “Liberation Day” tariffs on Friday. The suite of new levies has sparked chaos in global trade and raised questions about whether previously negotiated deals still stand.

Maros Sefcovic, the European Union’s trade commissioner, said the bloc was facing a “transitional period” in relations with the US. The EU suspended approval of its trade deal with the US on Monday.

Mr Kyle told MPs tariffs were “lose-lose”.

06:14pm

Closing post…

That’s all we have for today. Thanks for joining us.

Donald Trump’s tariffs came into force at the lower rate of 10pc earlier today and the White House insisted that the US President has had “no change of heart” regarding his 15pc blanket global levy.

Despite the tariff uncertainty, UK and European markets remained little changed, with the FTSE 100 falling just 0.04pc at the close.

On Wall Street, stocks advanced as investors digested the news that artificial intelligence (AI) company Anthropic and its partners are developing “plug-ins” to help with tasks in HR, engineering and investment banking.

05:54pm

Deutsche Bank sees tariffs falling this year

Deutsche Bank expects that Donald Trump’s tariffs on trading partners will still fall this year.

Jim Reid, of the banking giant, said: “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.”

The US President’s address is set to commence at 2 a.m. London time and will be given to a joint session of the US Congress.

“Net-net we still think the effective tariff rate will fall this year and that the world post-SCOTUS [Supreme Court of the United States] will see lower tariffs than the pre-SCOTUS world,” Mr Reid added.

05:36pm

UK stocks ‘dusted themselves off” despite tariff uncertainty

Donald Trump’s 10pc tariff rate coming into effect earlier today has made little change to UK stocks, AJ Bell said.

Danni Hewson, of AJ Bell, said: “Despite the huge amount of uncertainty over Donald Trump’s moving tariff target, London’s markets have dusted themselves off and the FTSE 100 flirted with another record close before stopping short.

Story Continues  

“Crowd-pleasing updates from two of its members saw both Convatec and Croda enjoy double digit share price gains which more than offset today’s weakness from the banking sector.

05:27pm

US stocks rise on software stocks

Wall Street stocks have risen on gains in the software sector after artificial intelligence (AI) company Anthropic announced a number of partnerships.

The business behind Claude Cowork said on Tuesday that it was developing new “plug-ins” with its partners to help with common HR and engineering tasks.

The tech-heavy Nasdaq Composite rose 1.1pc, while the Dow Jones Industrial Average advanced 0.8pc and the S&P 500 climbed 0.7pc.

Among Anthropic’s partners, Docusign’s stock edged 4pc higher and shares in FactSet were up 6pc.

05:09pm

UK and European markets little changed

UK and European markets have largely closed unchanged after the White House insisted that Donald Trump has had “no change of heart” over his plans to introduce a 15pc global tariff rate.

The FTSE 100 remained little changed since Monday’s closing bell, with a decline of 0.04pc.

Meanwhile, Germany’s Dax broadly flatlined, shedding 0.02pc, and France’s Cac rose 0.3pc.

04:44pm

Supreme Court ruling ‘not to our advantage’, says Bailey

Donald Trump’s new 15pc tariff on global imports has hit Britain’s competitive edge, Andrew Bailey has warned.

The Governor of the Bank of England told MPs that the US Supreme Court striking down much of the basis for the US President’s taxes on imports, followed by a new flat 15pc levy on trade, undermines the benefits of the deal struck between the UK and US last year.

“We have to watch this very carefully. You take what has been announced in the last few days. Is it 10pc, is it 15pc, I am not really sure,” he said.

“Our initial staff analysis of that from the point of view of the UK is, it does seem to represent a smallish increase in the effective tariff rate for the UK. But what is probably more important is that, because the UK started at a low level, this shift to a more common tariff level brings other people’s tariffs down relative to where we are. So relatively speaking there is a bit of a shift going on there which obviously isn’t to our advantage.”

Mr Bailey told the Treasury Select Committee that so far the trade war has shown up in prices in the UK, including in January’s fall in the pace of inflation to 3pc.

“I think we are seeing some trade effects coming through, in goods pricing, from China,” he said.

This indicates there is some diversion of goods which might once have been sold into the US but are now heading for other nations, including Britain.

“Chinese trade to the US has fallen, but Chinese trade globally has not.”

04:04pm

Nvidia results have potential to ‘make or break’ market

Nvidia’s next set of earnings results, which are coming out on Wednesday, have the potential to “make or break” the market, AJ Bell said.

Dan Coatsworth, of AJ Bell, wrote in a note: “Investors have plenty to worry about, and Nvidia’s results on Wednesday have the potential to make or break the market depending on what it says about AI.

“The market has this year shown widespread concerns about all things linked to AI, from excessive spending to business models being disrupted, so Nvidia needs to retain its uber-bullish stance if it wants to avoid stirring the pot of worry for investors.”

03:44pm

AI panic reels in America’s oldest tech giant

Deep inside the server rooms of hundreds of the world’s biggest businesses, mainframe computers built by International Business Machines (IBM) hum and whirr.

IBM is ancient by US technology standards, founded more than a century ago. But its chunky computers form the backbone of banks, airlines, card payments and more.

Founded in 1911, it first manufactured early “punch-card” tabulation machines, before developing its mainframe technology in the 1960s. Some 70pc of Fortune 500 companies now rely on its machines, as do more than 90pc of the world’s banks.

Yet IBM, known as Big Blue, has become the latest US tech giant to be suffering from AI jitters.

03:21pm

US consumer confidence improves ahead of Trump speech

The American consumer’s confidence in the US economy improved slightly in February in a boost for Donald Trump ahead of his State of the Union address to Congress later.

The Conference Board said that its consumer confidence index rose to 91.2 in February from an upwardly revised 89 last month.

A measure of Americans’ short-term expectations for their income, business conditions and the job market rose four points to 72.

However, it remained well below 80, the marker that can signal a recession ahead. It’s the 13th consecutive month that reading has come in under 80.

The measure of consumers’ assessments of their current economic situation fell by 1.8 points to 120.

The US president is expected to insist the American economy remains healthy when he speaks at the US Capitol at 2am UK time.

White House press secretary Karoline Leavitt said Trump will argue that Republicans are best suited to continue tackling the public’s concerns about the cost of living.

She said: “The president’s going to make the case that three more years with him in the White House and with Republicans on Capitol Hill we can finally achieve the American dream in this country again that we had in his first term but was lost because of Joe Biden and the Democrats over the past four years.”

03:01pm

Wall Street pushes higher after tariff turmoil

Stocks on Wall Street shrugged off the White House’s pledge to raise tariffs to 15pc.

The Dow Jones Industrial Average and S&P 500 were up 0.3pc and the Nasdaq Composite gained 0.2pc. All had fallen more than 1pc on Monday amid the trade upheaval.

Among individual companies, semiconductor giant AMD shot up 6.5 percent after reaching a supply agreement with Meta to provide six gigawatts worth of key AI chips.

02:40pm

US stocks rebound slightly after sell-off over tariffs and AI

Wall ⁠Street’s main indexes edged higher at the opening bell amid uncertainty around global tariffs and the threat to jobs and businesses from AI.

Anthropic ‌has unveiled ‌10 ⁠new ways for business customers to plug in its ⁠technology to key areas of their work, weeks after other ​releases sparked an ‌aggressive sell-off of traditional software company shares.

At the open, the ​Dow ⁠Jones Industrial Average rose 0.5pc to 49,067.75, the S&P 500 was flat at 6,840.30 and the Nasdaq Composite rose 0.1pc to 22,641.66.

02:37pm

White House insists ‘no change of heart’ on Trump tariffs

The White House has insisted Donald Trump has had “no change of heart” over his plans to introduce 15pc global tariffs.

The US administration enacted 10pc tariffs today to replace the levies that were struck down by a Supreme Court ruling on Friday.

Mr Trump had threatened over the weekend to raise the levies to the maximum 15pc allowed under the 1974 Trade Act but the he only followed through on a 10pc increase he signed last week.

It followed a backlash on Monday from both the UK and EU to the change in tariffs. The EU delayed a vote on ratifying a trade deal with the US.

A White House official told Reuters that the administration was working to raising the tariffs but the timing of the change was unclear.

02:21pm

EU ‘should vote’ on US trade deal next month

The European Parliament should aim to vote on the EU-US trade deal in March, a top official has said after talks with the Trump administration.

Maroš Šefčovič, the European Commissioner for Trade, said his US counterparts had reassured him “they stand by the deal” with the EU to lower tariffs on both sides of the Atlantic.

He said it was “imperative we keep the process moving forwards”, urging members of the European Parliament to vote on the deal next month.

Members voted to suspend a vote that had been due to take place today.

01:41pm

Stocks mixed as investors ‘reduce risk levels’

Stocks around the world were mixed ahead of Donald Trump’s State of the Union address to Congress, where he may set out more details on his tariff plans.

US stocks were poised to open a touch higher, while the FTSE 100 in London was flat. Indexes in Germany and Madrid were lower.

Currency markets were also tepid, with the dollar flat agains the pound and euro, and government borrowing costs were also little changed on bond markets.

“We are reducing our risk levels by a notch,” said Mohit Kumar, chief economist at Jefferies.

“Ongoing concerns over AI disruption and the possible exposure to private credit and private equity have made investor sentiment fragile. If we do get an escalation in geopolitical risks, markets may face some wobbles.”

01:21pm

Trump is already far along the perilous path of Charles I and George III

Those of us who have long admired America as a kindred spirit and upholder of the happiest flowering of global prosperity ever known can only watch with horror as the country hurtles towards a full-blown constitutional crisis.

The Supreme Court ruling on Donald Trump’s tariffs – or rather his reaction to it – compounds the unfolding national tragedy.

Yes, the court has stepped back from the brink after pushing “unitary executive theory” to the limits of credibility and rubber-stamping the abuses of a corrupt and arbitrary presidency.

By striking down Trump’s illegal use of the International Emergency Economic Powers Act (IEEPA) to impose sweeping taxes, without a vote by Congress, the court has at last begun to restore the system of checks and balances that has sustained the great republic through 250 years.

Donald Trump is pushing America dangerously close to civil war - WILL OLIVER/EPA/Shutterstock

01:06pm

Pound flat as Bailey prepares to address MPs

The pound was little changed in the fallout from the latest US tariffs.

Sterling was flat at $1.349, near its lowest level in a month, and was flat against the euro at €1.

Andrew Bailey, the Governor of the Bank of England, will appear in front of MPs later, where he could discuss tariffs and the outlook for interest rates.

The Monetary Policy Committee held policy at 3.75pc in a narrow vote this month. Markets show traders ‌think the ‌central bank will cut ⁠rates twice this year to take the benchmark rate to 3.25pc.

12:43pm

Gold drops amid tariff uncertainty

Gold prices fell sharply as investors awaited clarity on Donald Trump’s tariff plans.

Bullion dropped 1pc to $5,154, likely ending a four-day winning streak as the dollar staged a slight recovery from its own tariff induced sell-off on Monday.

Gold, a traditional safe-haven asset, tends to benefit in times of geopolitical and economic uncertainty.

12:25pm

Why London looks ‘very vulnerable’ to an AI jobs cull

Few countries in the world generate as much of their wealth from professional services as Britain.

The UK boasts an army of well-paid bankers, lawyers and accountants. However, this long-running strength now risks becoming the country’s Achilles’ heel as artificial intelligence upends the jobs market.

“There is a big change coming,” says Irina Pafomova, a City banker turned tech expert who now runs Zestic, an AI consultancy.

“I have been a professional in finance and investment banking and know the content of those jobs. Professional services are very vulnerable.”

11:57am

Wall Street poised for rebound despite trade turmoil

US stock indexes are on track to rebound from the sharp sell-off that was driven by Donald Trump’s trade war and fears over AI.

All three main indexes dropped more than 1pc on Monday, with banking and software stocks among the worst hit.

As well as the trade upheaval, analysts also attributed the slide to a report from Citrini Research outlining potential threats to the global economy from the rise of artificial intelligence.

In premarket trading, the Dow Jones Industrial Average and Nasdaq 100 were up 0.3pc, while the S&P 500 gained 0.2pc.

11:18am

FTSE 100 falls over Trump tariffs and AI

The FTSE 100 dropped as caution swept markets over Donald Trump’s new tariffs and the threat from AI.

The UK’s benchmark stock index was down 0.2pc as new 10pc global levies came into force, following the Supreme Court’s decision to strike down much of his tariff regime on Friday.

Software stocks were hammered once again, dropping by 1.4pc in London, as traders were also gripped by fears about the impending disruption coming from AI.

ID verification software supplier GB Group fell 1.8pc, with Relx was down 1.6pc and Softcat falling 1.5pc.

Software stocks across the FTSE 100 and FTSE 250 have lost a quarter of their value since the turn of the year.

Stocks across Europe were mainly lower, with the Dax in Germany down 0.1pc and the Ibex 35 in Spain falling 0.7pc.

Deusche Bank analyst Jim Reid said much of the AI-related sell off was attributed to a memo by Citrini Research which outlined “a hypothetical scenario in which AI adoption drives the US unemployment rate into double digits by mid 2028”.

He said the argument “leans heavily on narrative and emotion rather than hard evidence”.

He added: “That doesn’t mean it will ultimately be wrong, but in both cases the vibes to substance ratio is undeniably high.”

11:02am

Japan urges US to honour terms of trade deal

Japan has asked the Trump administration to make sure its trade terms under the new tariff regime remains as favourable as before last week’s Supreme Court ruling.

The country’s trade minister and US commerce secretary Howard Lutnick agreed on a call on Monday that the two countries would implement the trade deal struck last year “in good faith and without delay”, according to the Japanese trade ministry.

Trade minister Ryosei Akazawa said today that some Japanese exports, which are currently subject to reduced tariffs under the deal, may face higher levies.

Mr Akazawa and other ‌officials refrained from commenting on the US Supreme Court decision, only saying they would closely examine its details.

Prime Minister Sanae Takaichi is due to visit the US next month.

10:53am

Companies cannot plan ahead, say business leaders

The British Chambers of Commerce (BCC) said companies had been left unable to plan ahead over fears Donald Trump’s higher 15pc tariff rate could be imposed at any time.

William Bain, head of trade policy at the BCC, said: “While a new 10pc tariff rate, instead of the threatened 15pc, will provide some relief, it shows how difficult it is for businesses to plan ahead.

“It is far from clear what will happen next and whether a higher tariff rate is still on the way.

“Despite the immediate reprieve, there is fresh uncertainty for UK firms exporting goods to the US.

“This makes it very difficult for firms to understand the prices and margins they will be able to secure for their goods, currently under production, for export in several months’ time. Inevitably this will have an impact on their sales and hit the economy.”

Mr Bain added: “The risk of further tariff pain to come is still real and the Government must do everything it can to prepare for the worst.”

10:32am

China to decide on retaliation ‘in due course’

China said it will decide on whether it will impose countermeasures to Donald Trump’s latest tariffs “in due course”.

A commerce ministry official said Beijing was willing to hold frank consultations during an upcoming sixth round of US-China trade talks.

The official said: “China has consistently opposed all forms of unilateral tariff measures and urges the US side to ‌cancel unilateral tariffs ‌and refrain from ⁠further imposing such tariffs.”

Imports from China had been subject to 20pc tariffs under the laws struck down by the Supreme Court ruling on Friday.

New 10pc tariffs under a different law came into force today, which Mr Trump has pledged to raise to the maximum 15pc.

09:41am

Expect tariff exemptions in coming days, says JP Morgan

The Trump administration will announce a wave of tariff exemptions in the coming days as the White House seeks to ease “significant” pressure on US inflation, Wall Street’s biggest bank has said.

JP Morgan said the new 10pc tariffs enacted today would ratchet up the average tariff rate in the US to 14pc to 15pc, higher than the 9.4pc level before the Supreme Court’s ruling on Friday.

The new tariffs apply to all goods covered by the United States-Mexico-Canada Agreement (USMCA) trade agreement, which until now had been exempted from the worst of US tariffs.

US companies pay the cost of tariffs, driving up their costs, which they could pass on to consumers.

JP Morgan estimates tariffs have brought in around $130bn for the Trump administration but said the new tariffs under the 1974 Trade Act would potentially bring in $175bn annualised revenue if put in place over the long term.

At present the tariffs can only remain in place for 150 days before the president must obtain Congressional approval.

Analyst Jahangir Aziz said: “Even if these tariffs remain in place for just 150 days, the impact on US supply chains and prices could be significant.

“As announced, the 10pc tariff willl apply to all USMCA goods, removing a key exemption that has so far helped limit disruptions to supply chains and inflation.

“We consequently expect carve-outs and exemptions to be announced in the coming days and as such the effective tariff rate will be lowered.”

09:20am

Dollar flat over tariff uncertainty

The value of the pound was little changed against the dollar as traders assessed the impact of Donald Trump’s new tariffs.

Sterling was flat at just under $1.35, while the euro was also steady at $1.179.

However, investors remained cautious as the US president’s new 10pc global levies came into force, replacing the import taxes that were struck down by the Supreme Court last week.

Hugh Gimber, an analyst at JP Morgan Asset Management, told Bloomberg TV: “We see the new path for the dollar as lower and think that last year was just the start of a multi-year trend.”

08:49am

Bitcoin on track for worst month in over three years

Bitcoin was on course for its worst month since 2022 as Donald Trump’s tariff chaos rattled the cryptocurrency world.

The world’s largest digital currency fell as much as 2.6pc to less than $63,000 overnight, leaving it down more than 19pc in February.

It is its worst monthly performance since the implosion of stablecoin TerraUSD, which led to a series of failures in the industry, including crypto hedge fund Three Arrows Capital.

Bitcoin is also on track to fall for a fifth month in a row, which is its longest losing streak since 2018.

Analysts at Saxo Bank said crypto assets would be hit by sentiment “as long as tariff uncertainty and equity volatility persist”.

08:35am

European shares slump as trade war deepens

European shares opened lower as Donald Trump’s 10pc tariffs on global trading partners came into force.

The Stoxx 600 dropped 0.3pc while the Cac 40 in Paris dropped by 0.4pc. The Dax in Frankfurt, which dropped 1.1pc on Monday, was down a further 0.3pc.

Emma Moriarty, a portfolio manager at CG Asset Management, said: “It’s hard to be confident on the trajectory of European stocks as some of the issues around trade uncertainty with the US remain.”

08:15am

FedEx sues Trump administration over tariffs

US delivery and freight giant FedEx has sued the US government seeking to reclaim money it paid for tariffs that have now been ruled illegal.

The Supreme Court struck down Donald Trump’s signature global tariffs last week, ruling that he had exceeded his authority in tapping emergency economic powers to impose them.

FedEx is seeking a “full refund” of the duties it paid on imported goods in its suit against Customs and Border Protection, filed at the US Court of International Trade.

The lawsuit appears to be the first from a major company since the Supreme Court ruling, which did not address how refunds would be handled – though one justice acknowledged it could be a “mess”.

Several lawsuits had already been filed before the Supreme Court’s Friday ruling.

The tariffs raised more than $130bn (£96.5bn) from importers, collected by the government.

After the Supreme Court ruled against Trump’s country-specific tariffs last week, the president turned to a separate law to sign an order for broad 10pc duties on imports, taking effect today.

He later vowed to hike the new tariffs to 15pc, although it is unclear on when these would come in, following a backlash from Britain and the EU.

FedEx is suing the Trump administration over its illegal use of tariffs - REUTERS/Mario Anzuoni

08:03am

FTSE 100 falls amid trade uncertainty

The FTSE 100 fell at the start of trading after Donald Trump’s new tariffs came into effect.

The UK’s flagship stock index declined by 0.2pc to 10,658.88 while the mid-cap FTSE 250 was little changed at 23,547.26.

07:58am

Trade war boosts profits at Standard Chartered

Standard Chartered has revealed its profits surged as it took advantage of Donald Trump’s global trade war.

This was helped by income from its wealth division soaring by nearly a quarter year on year and its global banking arm up by 15pc.

Geopolitical changes affecting global trade worked in the bank’s “favour”, it said, as it capitalised on its presence across Asia, Africa and the Middle East to help advise its customers.

Chief executive Bill Winters said: “We are seeing robust growth in our larger markets and structural shifts in global trade and investment play to our distinctive strengths serving our clients’ cross-border and affluent banking needs.”

Standard Chartered boss Bill Winters said ‘structural shifts in global trade’ had boosted the bank - Chris J. Ratcliffe/Bloomberg

07:43am

Trump tariffs launches at 10pc after UK-EU backlash

Donald Trump’s tariffs came into force at the lower rate of 10pc today hours after the European Union suspended a vote to ratify its trade deal with the US.

The European Parliament’s trade committee had been due to vote ​today about whether to adopt a deal that would have lowered duties on both sides of the Atlantic.

Bernd Lange, the EU trade committee ‌chair, said ‌the new temporary US ⁠tariff could mean increased levies for some EU exports and no one knew what would happen after the new tariffs expire in 150 days.

Meanwhile, Britain also ramped up pressure on the US president over tariffs.

The Prime Minister’s official spokesman said “nothing is off the table” as Downing Street sought clarity on whether the new tariffs would hit its preferential trade deal with Washington.

07:40am

Gold falls as tariff panic subsides

Gold prices fell as investors booked profits after Donald Trump’s tariff turmoil.

Bullion rose more than 2pc on Monday as investors raced to buy the precious metal, which is considered a safe haven in times of upheaval.

However, gold was last down 0.5pc to $5,180, putting it on course to snap a four-session winning streak and dropping from a more than three-week high hit earlier in the day.

07:20am

European stocks poised to edge higher

European share indexes were on track to rise at the open as Donald Trump’s new tariffs came into effect at the lower 10pc level.

The Dax in Germany and Cac 40 in France were up 0.1pc in premarket trading, while the FTSE 100 was flat.

07:16am

Good morning

Thanks for joining me. Donald Trump’s new tariffs have come into force – but at a lower level than he had threatened over the weekend. Here is what you need to know.

5 things to start your day

1. Labour to make case for ‘united’ UK and Europe after Trump tariff threat | Peter Kyle, the Business Secretary, will meet senior EU officials to make the case for Britain and Europe to stand “united”

2. Reliance on foreign food a threat to national security, warn farmers | Tom Bradshaw will use a speech to call for more home-grown food production to boost the economy, as he claims that thousands of farms are fighting for survival

3. Parliament pension fund snubs Trident and invests in China | Two fifths of the money looked after by the parliamentary contributory pension fund has been put into funds that automatically exclude businesses with links to nuclear weapons

4. Weight-loss drug trial results wipe £147bn off Ozempic maker | Shares in the Danish pharmaceutical giant plunged by 15pc, wiping around €169bn (£147bn) off its market value in just 90 minutes

5. Tech boss sacked for blowing whistle on China wins payout | Ron Black has received $2m (£1.5m) from Imagination Technologies after an employment tribunal declared he had been unfairly dismissed for whistleblowing

What happened overnight

Asian stocks stabilised despite the heightened anxiety over Donald Trump’s tariff policy.

MSCI’s broadest index of Asia-Pacific shares outside Japan was on track for fresh highs after a seven-day rally, advancing 0.3pc as benchmarks in Taiwan and South Korea both hit their highest level on record.

Tokyo’s Nikkei 225 rose 0.9pc and China’s CSI 300 gained 1.2pc as markets there played catch-up after a holiday.

Asian markets have suffered a wobbly start as a fresh AI-linked selloff on Wall Street rattled investors.

In the US, stocks dipped as investors responded to Donald Trump’s new blanket global tariff rate of 15pc.

The Dow Jones Industrial Average shed 1.7pc, while the tech-heavy Nasdaq Composite and the S&P both declined just over 1pc.

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