US stocks open up by more than 3%

By Sarah Taafe-Maguire, business and economics reporter

Like peers in Asia and Europe, US stocks have opened on a positive but are nowhere near the highs before Trump announced his tariffs.

The S&P 500 index of companies relied on to be stable and profitable rose 3.3%.

The tech-company-heavy NASDAQ grew 3.6%, while the Dow Jones Industrial Average (DJIA) index of 30 major companies listed on US stock exchanges was up 3.3%.

Watch live: New York Stock Exchange will open for trading in a few minutes

Another day, another anxious wait for Wall Street to open.

The New York Stock Exchange will open for trading at 2.30pm UK time.

It’s expected to be a more encouraging day, from what we’ve heard so far.

Watch the stream at the top of the page as the US markets open.

European drink makers behind popular brands rally

European alcohol producers made broad gains this morning, after news emerged that the EU had exempted whiskey, wine and dairy products from its 25% retaliatory tariffs on US goods.

Diageo, which makes Johnnie Walker, Smirnoff and Guinness, was up by around 1% at 9.47am UK time, while AB InBev, the world’s largest brewer behind the likes of Budweiser and Stella Artois, gained 1.6%. 

Carlsberg and Pernod Ricard were also both up by 1%. Remy Cointreau (up 2.5%) was also among the industry’s top movers.

‘General level of anxiety about trade’, says Ford UK chair

Ford UK’s managing director Lisa Brankin believes the car giant is “less affected” by the impact of tariffs than other firms.

That’s in part because many of the cars sold in the UK and Europe are assembled outside the US.

But there is still some nervousness in the industry, Brankin told our presenter Darren McCaffrey on Business Live earlier.

“I think there’s a general level of anxiety around everything that’s happening about trade,” she said.

“But I just want to say that we’re focused very much on how we stimulate the market and how we encourage customers to come to buy our cars, but also our commercial vehicles.”

She said Ford “probably” manufactures more vehicles for the North American market than anyone else.

“I’m not saying that we’re not impacted,” she added.

“I’m just kind of saying that the impact is probably a little bit less than some of the people that you’ve spoken to.”

Ford employs around 5,000 people in the UK.

Will US markets open higher?

The US stock market opens for trading again from 2.30pm UK time and early indicators suggest it will regain some losses.

The futures market shows both the S&P 500 and the Dow Jones Industrial Average are set to open up by between 1% and 2%, marking a slight rise.

It’s worth remembering that these estimates can be volatile, but it’s a good sign for traders and investors who were hoping to see the US follow 

If you missed it earlier, the FTSE 100 index of the biggest companies listed in the UK opened with a 0.91% rise this morning (see 12.53pm post). 

Oil prices staying low – and you could see cheaper petrol in 10 days

By Sarah Taaffe-Maguire, business and economics reporter

While stock markets across the world are rising again, there’s been little movement in the price of oil.

It’s now $64.54 for a barrel of Brent crude, the benchmark price, amid continued fears of a recession in the US, the world’s biggest economy.

Last year, the average price was $80 a barrel.

This lingering low could be a rare silver lining in gathering recession fear clouds – cheaper oil will feed through to prices at the pumps in the next 10 days. 

EU: We’ll reveal tariff response plan next week

Wheels are in motion in for the EU’s response to Donald Trump’s tariffs, according to a spokesperson.

The bloc was hit with a 20% tariff by Trump last week and has since been formulating its stance in response.

Speaking just a short time ago, spokesperson for the EU commission Olof Gill said the picture will be clearer within a week.

“Early next week, we will basically be presenting our plan,” they said.

“We’ll explain what the roadmap is, then consult with member states, consult with industries, before we come forward with the final measures that we will then present to member states to vote on.”

Chart shows FTSE 100 regaining some losses

After three days of steep losses, the FTSE 100 index of the biggest companies listed in the UK opened this morning with a 0.91% rise.

As it stands, the FTSE is up more than 2% today.

This graph shows the plunge since Donald Trump announced his tariffs last week – with the fragile recovery this morning…

Treasury secretary: US discussing which countries to prioritise for tariff deals

US Treasury secretary Scott Bessent says tariff negotiations are the result of multiple calls from countries and not to do with turmoil on the financial markets.

Speaking to CNBC a short while ago, Bessent gave some hope to countries seeking to reduce the effect of tariffs, saying if there are “solid proposals” on the table, deals can be made.

Bessent said US officials had discussed which countries to prioritise and that Trump would be involved in negotiations personally.

“We were having a discussion last night about which countries to prioritise, and I think you are going to see some very large countries with large trade deficits come forward very quickly,” he said.

Bessent also called China’s decision to hit Washington with a retaliatory tariff “a big mistake”.

US officials have said that more than 50 countries have come forward seeking trade talks.

What are NTBs and why are they Trump’s big issue?

“Why don’t they buy them!” Donald Trump complained in his news conference yesterday.

He was talking about Japan not buying American cars.

He is right that Japanese cars are everywhere in America but American ones are not in Japan – less than 1% of cars sold in Japan originated in the US last year.

The reason, which could be applied to the EU and the UK too where American cars are also scarce – to Trump’s irritation – is as much about other barriers as it is about tariffs.

In Japan, American cars are subject to unique standards, rules limiting distribution, discriminatory financial incentives, and costly certification procedures. American vehicles often fail to reach European or Japanese safety standards.

These are “non-tariff barriers” or NTBs, and they really anger Trump and his team.

He had quite a bit to say about NTBs at his news conference yesterday with Benjamin Netanyahu – who came to Washington seeking a tariff deal but left without one.

The EU is a particular stickler for NTBs. And the UK, despite Brexit, has remained aligned with a proportion of this regulation, particularly so-called Sanitary and Phytosanitary (SPS) barriers, which are biosecurity measures aimed at protecting human, animal, and plant life (it’s the whole chlorinated chicken debate).

Peter Navarro, Trump’s senior adviser for trade and manufacturing, has said repeatedly that NTBs are the major problem for the White House.

Vietnam recently offered for 0% tariffs on US imports but Navarro said that “means nothing”, adding that the emphasis should be on non-tariff barriers.

There is now growing pressure for the UK to remove some of these barriers to placate Trump. This would carry risks to weigh up against the current tariff nightmare.

Lifting NTBs would risk upsetting Britain’s reset with the EU. It would be domestically politically risky too, igniting a debate about American food and medicine on UK shelves and American cars on UK streets.

It’s understandable that the White House is frustrated by seemingly protectionist barriers to trade. But while these barriers are limiting the trade of American goods, they should not be confused with market dynamics and consumer preferences.

Do European and Japanese consumers want massive gas guzzling American vehicles that safety tests conclude are less safe? Do they want food which complies to standards below their own?

For the sake of our own economies, maybe it’s time to let the consumer decide.