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Continuing the trend of the week, coverage of Donald Trump’s tariffs, the stock market reaction and now claims of potential insider trading. 

Gold has risen to a record high as investors seek safe-haven assets amid the chaos. The ongoing escalation in the US-China trade war is still causing chaos in the markets as the Asian markets slid on Friday and the US markets slumped on Thursday close, wiping out a chunk of Wednesday’s historic rally. The US markets open at 14:30 GMT. 

Friday’s UK headlines cover a variety of domestic and international stories. There is, of course, continued coverage of the fallout from the Trump tariff debacle amid claims of market manipulation and calls for an investigation into potential insider trading.

Royal news continues to be highlighted on the front pages – in print and online – with Prince Harry making a surprise visit to Ukraine and Prince William talking football after Villa’s 3-1 loss. Charles and Camilla are pictured on several tabloids after marking their 20th wedding anniversary with a state visit to Italy, where the pair exercised their soft power in a bid to rebuild relations with the rest of Europe. 

The UK is set for another sunny day with temperatures reaching over 23C in some parts – and in Scotland, there are warnings of potential wildfires. 

Donald Trump announced a temporary 90-day suspension of certain tariffs less than a day after they came into effect. Many see it as the president backing down from his policy after US government bonds were being sold off, and the president likely under pressure from his rich and powerful friends (Elon Musk).

Whilst he came back from the brink for most countries he had hit, all countries (interestingly, Russia was not hit with tariffs) still face a blanket 10% tariff.

The administration intensified its stance on China by elevating tariffs on Chinese imports to 125%, underscoring a complex and strained U.S.- China trade relationship.

China responded firmly to the increased tariffs, maintaining a resolute position and implementing retaliatory measures. The Chinese Commerce Ministry announced an 84% tariff on all U.S. goods, signaling Beijing’s unwillingness to yield to U.S. pressure. This escalation has heightened concerns about a prolonged trade conflict between the world’s two largest economies.

The financial markets have reacted with notable volatility to these developments. Following the announcement of the tariff suspension, global markets experienced a relief rally. However, this optimism is tempered by underlying uncertainties, as analysts caution that the fundamental issues driving the trade tensions remain unresolved. The bond market, in particular, has exhibited signs of distress, with the U.S. 10-year Treasury yield climbing from under 4% to 4.5%, reflecting diminished confidence in U.S. fiscal stability.

Amid these economic fluctuations, there have been murmurs of potential market manipulation.

The current trajectory of U.S. trade policy, characterized by abrupt shifts and escalating tariffs, has prompted warnings from economic leaders. JPMorgan Chase CEO Jamie Dimon cautioned that the ongoing trade war could precipitate a U.S. recession this year.

Donald Trump has backed down on his tariffs (higher than the baseline 10%) on countries that did not retaliate against the levies. The US president announced via social media that there would be a 90-day pause on those tariffs and they would instead be dropped to the blanket 10% rate. But since China did retaliate, Trump announced that the tariffs on China would be hiked to 125%.

Much of the global media sees the announcement of Trump backing down from the trade war he started, likely amid US government bond sell-offs.

King Charles and Camilla are in Italy for a state visit, meeting with politicians and the pope and delivering a historic speech to both houses of the Italian parliament. The UK media is suggesting it is an exercise in Britain’s soft powers and that the royals are being used to help reset the UK’s relationship with the rest of Europe following the fraught and turbulent times of the Brexit era.

The state visit also coincides with the pair’s 20th wedding anniversary, and several of the royal-supporting news media offer insights into the couple’s marriage – the ups and downs and how they finally got together. There is also commentary on the King’s relationship with his youngest son, who is back in Britain for a court case regarding his personal security. The pair reportedly did not meet before Charles headed to Italy.

Thursday’s UK headlines, like much of the rest of the world, are, of course, dominated by the latest from the escalating trade war between the United States and the rest of the world. Trump announced a 90-day pause on the highest tariffs, dropping them all down to 10% except for China, which was hit with 125% levies. The stock markets have bounced back since the announcement, but the ball is very much back in China’s court, and all eyes are on Beijing to see how it responds. Everything that is coming out of China at the moment suggests they won’t back down and believe they can ride this out. 

A little closer to home, there are a handful of royal headlines, including King Charles’s state visit to Italy, which is being viewed as Britain exercising the royal family’s soft powers to help reset Britain’s relationship with the rest of Europe, nine years on from the Brexit mess. Charles and Camilla met with politicians and the Pope during their visit.