Mike Wendling
Reporting from Chicago

Talk of markets and international trade can sometimes seem a little abstract when you talk to people in America’s “rust belt” – the large swathe of the Midwestern US which is home to thousands of manufacturing businesses.

For many here, logic is simple – free trade agreements sent secure good-paying jobs overseas, and the resulting impact on communities has been nothing short of disastrous.

The economic reality is a little more complicated, but keep that argument in mind when you wonder why many Americans back a plan that might cost them lots of money in the form of higher prices.

Earlier this year, I visited the town of Delta, Ohio, which is home to a relatively new steel plant. Virtually everyone I spoke to in Delta felt uncertainty about the economy and even those who disliked the president were willing to roll the dice on tariffs.

Most were unworried about higher prices - they'd already gone through a period of high inflation, they argued, so how much worse could it get?

I heard some of the same themes last month in western New York state – a rust belt region far from the financial powerhouse that is New York City.

Union leaders and business boosters told me they sorely need higher-paying jobs. There’s no guarantee that tariffs will bring those jobs back, but many Americans think it’s a risk worth taking.

Image source, Reuters

US trade envoy Jamieson Greer says negotiations with the EU are "advancing quickly" after meeting European Trade Commissioner Maroš Šefčovič in Paris.

"Last week, the European Union provided the United States with a credible starting point for discussions on reciprocal trade," he says.

He adds that today's meeting "indicates a willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade".

Maroš Šefčovič earlier called the discussion "productive and constructive".

Image source, EPA

We're hearing now from Mexico as President Claudia Sheinbaum says she will announce new measures in response to higher US steel and aluminium tariffs if no agreement is reached.

Sheinbaum says the tariffs are "unfair" and Mexico's response will not be "an eye for an eye".

The measures are set to be announced next week, Reuters news agency reports.

Earlier, we brought you comments from Mexico's economy minister Marcelo Ebrard who said Mexico would be seeking an exemption from the higher tariff.

Dearbail Jordan
Senior business and economics reporter

Image source, Reuters

While policy groups such as the OECD have blamed Trump's tariffs for a projected slowdown in both US and global economic growth, America's president is again taking aim at one his favoured targets - the chair of the Federal Reserve.

The Fed is responsible for setting interest rates and is independent from the government. It is chaired by Jerome Powell, who was appointed by Trump during his first spell in the White House.

US employment figures from payroll firm ADP have just come out, showing that hiring has slowed to its lowest pace since 2023.

Trump reacted to the figures on social media: "ADP NUMBER OUT!!! “Too Late” Powell must now LOWER THE RATE. He is unbelievable!!! Europe has lowered NINE TIMES!"

While it is true the European Central Bank has been reducing interest rates at a fair clip, they have actually been cut seven times since last year.

But the pace has been slower in the US, with the Fed reducing rates three times over the same period. The Fed has indicated that that it wants to see what effect tariffs have on inflation before it makes another move. It will also want to look at official employment data due out on Friday to see if hiring is slowing or growing.

It appears Trump will have to wait and see.

Bernd Debusmann Jr
Reporting from the White House

So far, we haven't heard from the president directly about the metals tariffs. He has yet to post about it on Truth Social, and the g of the order yesterday took place behind closed doors.

Donald Trump has a relatively light schedule today:

• At 1400 local time (1800 GMT), he's scheduled to receive an intelligence briefing - a fairly routine occurrence that takes place in the Oval Office, away from the prying eyes of the media
• An hour later, he's scheduled to sign "proclamations", which often become extended Q&A sessions - if that happens, he is sure to be asked about the steel and aluminium tariffs which are dominating the US news cycle today
• This evening, he will participate in a "Summer Soiree" on the South Lawn, which has been described to me as something of a staff party

That event will be open to the White House pool and Trump may well speak then - though opportunities for questions will likely be limited or non-existent.

Natalie Sherman
New York business reporter

Shares in the US have opened for trading, and investors do not appear worried that the tariffs are moving ahead.

The Dow Jones Industrial Average is up about 0.2%, the S&P 500 has risen 0.3% and the Nasdaq is trading nearly 0.5% higher.

That relatively muted reaction masks the big moves for some specific companies that followed Trump’s announcement of his plan to raise the metals tariffs.

For example, Cleveland-Cliffs, a US steel maker, jumped more than 20% in the aftermath of the news.

Shares in US Steel are also trading significantly than they were a few weeks ago, though that reflects bets that Trump will greenlight a sale to Nippon Steel.

Trump's decision to double metals tariffs caught many off guardpublished at 14:41 British Summer Time 4 June

14:41 BST 4 June

Natalie Sherman
New York business reporter

The rise in US steel and aluminium tariffs to 50% is the second time since March that Donald Trump has taken action to protect production of the metals in the US.

But where his first move was announced with several weeks notice, this decision caught many off guard.

Many businesses in the US are incredulous that Trump would take such a step, noting that experience from prior tariffs suggests they may benefit steel and aluminium-makers in the US with higher prices - but will have a punishing cost for the many, many more firms in the US that use steel and aluminium.

A 2020 study of the more limited metals tariffs from Trump’s first term found that roughly 1,000 jobs were created, but employment was reduced by 75,000 in other sectors such as manufacturing and construction.

Erica York, vice president of federal tax policy at the Tax Foundation, says she expects even more extreme job losses this time.

"Some of the strongest evidence is against tariffs on intermediate inputs like steel and aluminium, finding they are much more harmful because they increase the cost of production in the United States," she says. "It's just very foolish to double down on this type of tariff in particular."

Mike Wendling
Reporting from Chicago

International allies might be wary, but US steel manufacturers are strongly backing the White House on tariffs.

This morning the American Iron and Steel Institute pointed me to a statement cheering Trump’s decision to boost the tariffs to 50%.They say the import taxes will save jobs and protect US companies.

"Led by China, global steel overcapacity and production continues to grow, even as overall global steel demand is being impacted by the sharp downturn in the Chinese construction sector," says the institute’s boss Kevin Dempsey.

"Given these challenging international conditions that show no signs of improvement, this tariff action will help prevent new surges in imports that would injure American steel producers and their workers."

The institute is currently holding its annual conference in Washington, and yesterday the chief executive of Cleveland-Cliffs - one of the country’s top steel producers - offered his strong backing to tariffs. Lourenco Goncalves says he hopes there are as few exceptions to the tariffs as possible, external.

Some metal producers - including aluminium manufacturers with global operations - are less certain. And companies that buy metals, such as automobile producers, have warned that prices might rise. But, overall, the domestic steel industry is largely behind the White House plan.

Image source, Reuters

Steel has been high on Trump's agenda for many years, as has China - which has faced the largest tariff threats from the US president in recent months.

"I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" Trump said on his Truth Social platform overnight.

The White House suggested yesterday that the two leaders could hold talks as early as this week.

China’s foreign ministry spokesperson has since said "China's principles guiding the development of China-US relations have been consistent".

• For context: Earlier this year, Trump hit China with a 145% blanket tariff applying to most goods; China retaliated with a 125% tariff on US goods. Under a truce struck in May, the US lowered its tariffs on China to 30% and China's retaliatory tariffs dropped to 10%. Both sides have since accused the other of violating the agreement.

Image source, Getty Images

US President Donald Trump announced the doubling of tariffs on steel and aluminium entering the US to 50% on Friday.

Speaking at a rally in Pittsburgh, Pennsylvania - the home of US steel - Trump said the move would boost the steel industry while reducing reliance on China.

"If you don't have steel, you don't have a country. You don't have a country, you can't make a military. What are we going to do? Say, 'Let's go to China to get our steel from the army tanks,'" Trump said.

He also pitched it as a way to ensure US steel's survival.

"At 50%, they can no longer get over the fence," he said. "We are once again going to put Pennsylvania steel into the backbone of America, like never before."

In the order signed last night, Trump said he had been advised that steel is being imported in the US "in such quantities and under such circumstances as to threaten to impair the national security of the United States".

Image source, EPA

China

The White House had suggested the president will speak to Chinese leader Xi Jinping this week, raising hopes they can soothe tensions and speed up a trade deal.

However, earlier today, Trump posted on his Truth Social , saying: "I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!"

Asked about the remarks during a regular press briefing, Chinese foreign ministry spokesman Lin Jian said "the Chinese side's principles and stance on developing Sino-US relations are consistent," according to the AFP news agency.

EU

The EU trade commissioner, Maros Sefcovic, said he had a "productive and constructive discussion" with US Trade Representative Jamieson Greer today, on the margins of the OECD ministerial meetings in Paris.

"We're advancing in the right direction at pace - and staying in close to maintain the momentum," he said.

On steel and aluminium, the EU said it "strongly regrets" Trump's plan, cautioning that it "undermines ongoing efforts to reach a negotiated solution" with the US, adding the bloc was ready to retaliate, the BBC's US partner CBS reports.

Mexico

Economy Minister Marcelo Ebrard said Mexico is looking to request an exemption from the higher tariff.

Ebrard argued that it was "unfair" because the US exports more steel to Mexico than it imports, according to CBS.

"It makes no sense to put a tariff on a product in which you have a surplus," he said.

Image source, PA Media

We can bring you the latest exchange in the House of Commons, where Keir Starmer is being quizzed on Trump's tariffs during Prime Minister's Questions.

Opposition leader Kemi Badenoch says UK steel producers will have to face a 25% levy, not the 0% she says Labour had promised.

"Unless [Starmer] does exactly what Trump says he wants- it's chaos, chaos, chaos," she says.

In response, Starmer says the UK is the only country to be exempt from the 50% tariffs announced today.

"We are working on bringing it down to zero," he adds.

• Follow our live coverage of this week's Prime Minister's Questions here

Dearbail Jordan
Senior business and economics reporter

Stock markets in the UK and elsewhere in Europe have eked out some gains as the day has gone on.

In London, the FTSE 100 is up 0.27%. In , the Cac-40 index is ahead 0.65%, while 's Dax is 0.61% higher.

Some market-watchers are surprised that things are relatively calm, especially after US President Donald Trump wrote on social media earlier about difficulties on reaching a trade deal with China.

"I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!" he said.

Wednesday is also the deadline for countries to submit proposals to the US to avoid Trump's so-called "retaliatory" tariffs, which have been paused but are due to come into force in five weeks.

And so, the tranquillity on stock markets might not last.

"I think we can expect some higher volatility in the coming days, up to the end of the pause in tariffs," says Amelie Derambure, a senior portfolio manager at asset management firm Amundi.

Esyllt Carr
Business reporter, BBC News

Philip Jackson, who runs Bright Steels Ltd in Malton, North Yorkshire, tells the BBC of his mixed feelings toward US tariffs on steel and aluminium.

There’s “relief that we’ve got a reprieve from the 50% tariff today,” he says, but there's also frustration that the UK-US trade deal has not come into force.

“Anything we dispatch now for the US could arrive after 9 July,” he explains. “We don’t know what tariff we are going to pay.”

As a reminder, British steel and aluminium exporters could face the higher rate of 50% if the trade deal is not implemented by 9 July.

As we've been reporting, the UK has been exempted from Trump's doubling of tariffs on steel and aluminium imports to the US. The levy remains at 25% for the UK.

In addition to this specific tariff, Trump also imposed a blanket 10% levy on imports from around the world, and so-called reciprocal tariffs on other countries, such as Mexico, Canada and China.

Here's a look at how these tariffs could impact prices in the UK:

Michael Race
Senior economics and business reporter

Image source, PA Media

While the government is breathing a sigh of relief and UK steelmakers have broadly welcomed the exemption to the higher 50% tariff on steel imports to the US, the industry has warned UK businesses could still be hit hard.

That's because a lot of global steel, originally destined for America, could end up being diverted to the UK market as a result of global suppliers looking to offload their goods elsewhere. This is due to import charges affecting orders to the US - the world's largest economy.

UK steelmakers say this is already happening and have called on the government to take action to limit the amount of steel being imported to the UK, which domestic manufacturers are saying is sending the price down and hitting their businesses.

"Imports are flooding into the UK market, depressing steel prices and taking away market share. We must not lose sight of our domestic market while battling to stabilise exports to the US," Gareth Stace, chief executive of UK Steel said.

This shows that, while lower US tariffs is being broadly welcomed, there are other ways they can hit the UK economy.

The secretary general at the International Chamber of Commerce UK has described the UK-US agreement as "mostly damage limitation" and says uncertainty is "the bigger issue".

Speaking on the BBC News Channel, Chris Southworth says the agreement "will make a difference" but adds that we need to start looking beyond it and talking about "real trade deals".

"Yes there's a US-UK deal being negotiated - it's not actually a deal, it's more of an agreement [...] not a trade deal as such."

It is "incredibly difficult" to keep track of the moving picture with tariffs, he says, and the UK should expect "continued uncertainty" in the short-term.

"In a way, that's the bigger issue here," Southworth continues.

"It's almost impossible for US steel producers and UK exporters to make any serious investment decisions on the future because it's just chopping and changing every single day."

Investors pausing and waiting to see what happens "is not good news for anybody" and will have a "direct impact" on growth.

Image source, Reuters

Turning back now to Chancellor Rachel Reeves's speech in Greater Manchester where she has just been asked by GB News whether Trump's vagaries are "turning into the stuff of nightmares" in light of the new tariff announcement.

Reeves says the exemption for the UK from the 50% tariffs has been "welcomed" by UK steel.

"That will apply to every country in world apart from Britain," she adds.

She attributes this to the negotiation done by Business Secretary Jonathan Reynolds as well as the work done by Prime Minister Keir Starmer on building the relationship with the US and setting out the case for the UK.

"We have 25% tariffs on steel today but we have signed a deal with the US that will bring those down to zero.

"We are still the only country that has done a deal with the US."

As a reminder: The UK-US trade deal, which will reduce or remove some levies, is yet to be implemented.

Dearbail Jordan
Senior business and economics reporter

Image source, EPA

One thing Trump's latest move over steel and aluminium tariffs has highlighted is that the trade deal the UK government announced with the US in early May , externalhad not been signed - and still hasn't.

At the time, the government said Keir Starmer had negotiated the steel tariff down from 25% to zero, "meaning UK steelmakers can carry on exporting to the US".

However, from today, imports to the US will be subject to a 25% tariff. This is better than the 50% facing other nations, but it is still a hefty levy.

The government also said that car export tariffs will reduce from 27.5% to 10% under the trade deal, applying to a quota of 100,000 British motors. That has also not been finalised.

Neither has the UK-US reciprocal deal on beef exports and imports.

A spokesman for the government said it will continue to work "at pace" to implement the agreement.

But it leaves businesses, who might be thinking about investment and expansion, in limbo. And if there's one thing companies cannot abide, it's uncertainty.