Tariffs live: EU pauses counter-tariffs on US for 90 days but warns Trump over deal

You can watch live below as Donald Trump holds his first cabinet meeting since announcing a 90-day pause on many of his so-called “reciprocal” trade tariffs:

US President Donald Trump’s tariffs are likely to hamper economic growth in the UK but it is “too early to call” their effect on inflation, a Bank of England policymaker says.

Sarah Breeden, the Bank’s deputy governor for financial stability, said on Thursday that the trade tariffs “would be expected to weigh on UK activity”.

But the impact on inflation is “not clear-cut”, Ms Breeden said, adding that the hit to demand could bring downward pressure while supply chain disruptions could bring upward pressure to inflation.

“Given all of the uncertainties, I think it’s too early to call the overall impact on inflation for the UK, and hence the appropriate monetary policy response at this stage,” she said.

The tariffs had prompted increased bets that the Bank would cut interest rates at its next policy meeting in May.

Ms Breeden said the new levies marked “the most significant change in trade policy in a century”.

Breaking news: The White House has told CNBC that US tariffs on China now total 145 per cent after a latest hike.

Earlier, they had been raised to 125 per cent.

Donald Trump’s tariffs on the UK are not temporary, the Prime Minister has said.

Asked whether he had spoken to the US president about the tariffs, Sir Keir Starmer told reporters: “My team are in contact with the president’s team every day.”

Asked whether President Trump “wasn’t taking his calls”, the Prime Minister said: “No not at all. You have to understand that for the UK and the US we’re actually talking all the time.”

He added: “At the same time, I’m clear that this is a change which isn’t, in my view, temporary and therefore we’ve got to do the margins of making sure we turbocharge our own economy.”

China says it will immediately restrict imports of Hollywood films in retaliation for President Trump’s escalation of US tariffs.

After three decades during which China annually imported 10 Hollywood films, its National Film Administration said Mr Trump’s increase of tariffs on Chinese imports would further sour domestic demand for US cinema in China after years of decline.

“We will follow market rules, respect the audience’s choices, and moderately reduce the number of American films imported,” the NFA said on its website.

Chris Fenton, author of “Feeding the Dragon: Inside the Trillion Dollar Dilemma Facing Hollywood, the NBA, and American Business”, said the move was a “super high-profile way to make a statement of retaliation with almost zero downside for China”.

Hollywood studios once looked to China, and its giant film market, to help boost box office performance of movies. But domestic films increasingly have outperformed Hollywood’s fare in China.

Now, US films account for only 5% of the overall box office receipts in China’s market. And worse for Hollywood, China taxes that small amount 50% before any revenues go back to the USA, Mr Fenton said.

US stock markets are down again today, with a mix of reasons likely at play, writes Karl Matchett.

First, the wild buying yesterday sent some equities up more than 20 per cent – so some profit-taking would not be unexpected, especially if investors had locked in losses in the previous days’ falls.

Secondly, US inflation data is coming in and is surprisingly lower than expected; that, plus a slight restoration in markets, may change calls for cutting interest rates. Higher interest rates are (very broadly and basically) less-good for equities prices, so there’s a balancing act there.

And finally, as AJ Bell’s Russ Mould points out, is the actual question of whether share prices should be as high as they were or whether the tariff-induced sell-off just exaggerated something that was on its way anyway.

“There is an old market saying that stock market tops are a process, while bottoms are an event.

“The S&P 500 had been making heavy weather of it even before Donald Trump’s trade and tariff interventions and had already started to roll over in a classic example of that pattern, so the big issue now is whether Wednesday’s spike is a buy signal or simply a cruel bear trap for unwary bulls who are accustomed to ‘buy the dip’,” he said.