Tariffs latest news: Asian markets fall and China reacts to JD Vance ‘peasants’ insult as Trump 104% levy comes into effect

Britain will not make any changes to its Online Safety Act as part of trade negotiations with the United States, Culture Secretary Lisa Nandy said on Wednesday.

“We’ve been really clear that we have to regulate the online space to make sure that it is a safe space, just as we would do in the real world,” she told Times Radio, when asked if she would consider changing the law.

“That is not on the table as part of a trade negotiation.”

Britain is aiming to strike a new economic partnership with the United States focused on tech and artificial intelligence to soften the blow of the sweeping tariffs announced by President Donald Trump last week.

Campaigners have raised concerns that measures to constrain the power of “big tech”, such as online safety laws and digital services taxes, could be watered down to secure a deal.

Britain’s Online Safety Act, which became law in 2023, sets tougher standards for platforms to tackle criminal activity, with an emphasis on child protection and illegal content.

China is reportedly considering a ban on all USfilms in retaliation for Donald Trump raising tariffs on Chinese imports.

Bloomberg News reports that in China, two widely followed bloggers with links to the local authorities shared identical lists of measures that could be introduced by Chinese authorities in response. These include “reducing or banning the import of US films.”

French industry Minister Marc Ferracci said it was paramount to analyse the likely impact of US tariffs on sectors such as aerospace, cosmetics or luxury goods in order to calibrate the European Union’s response.

Mr Ferracci also told Franceinfo radio that the European Union’s response must be “firm and proportionate” to avoid an escalation that would hit jobs.

President Donald Trump’s “reciprocal” tariffs on dozens of countries took effect on Wednesday, including massive 104 per cent duties on Chinese goods, deepening his global trade war even as he prepared for negotiations with some nations.

Pushing a shopping cart down the aisle of a Walmart Supercenter, Thomas Jennings, 53, loaded up on juices, condiments and whatever he could think of.

Earlier at Costco, Jennings bought flour, sugar and water in bulk.

“There’s a recession coming and I am preparing for the worst,” he said.

The vice president said the US was “incurring a huge amount of debt to buy things that other countries make”.

The leaders of Vietnam and Spain pledged to boost economic ties and defence cooperation and voiced their support for upholding free trade, at a time when both are hit with the Trump administration’s reciprocal tariffs.

Spain and Asian manufacturing powerhouse Vietnam are seeking to avert the imposition of tariffs of 46 per cent on Vietnamese goods and 25 per cent on European Union products entering the US, effective Wednesday.

Vietnam wants to upgrade ties with Spain to the level of comprehensive strategic partnership at the earliest opportunity, its prime minister Pham Minh Chinh said during a visit by his Spanish counterpart Pedro Sanchez.

“Regarding the current global situation, the more difficult and challenging it is, the more we need to cooperate and underline the multilateralism,” Mr Chinh said at a joint briefing with Sanchez in Hanoi.

Mr Sanchez said Spain believed in economic openness and was against trade conflicts.

“Spain supports a rules-based international order, free trade, and economic openness, and believes that trade wars benefit no one but harm everyone,” he said.

Spain is keen to expand its presence in Vietnam, including in railway infrastructure, where Spain could share expertise from building its own high-speed rail network, Mr Sanchez said.

Chinese e-commerce giants Shein and Temu face a sharp blow after the US raised tariffs on low-cost imports from China and Hong Kong to 90 per cent, following the removal of a long-standing exemption on packages valued under $800.

Initially set at 30 per cent – or $25 – starting 2 May, the tariff rate has now been tripled to $75 per package. The White House confirmed the levy will rise further to $150 from 1 June.

The move marks a significant escalation in Washington’s trade crackdown and is likely to hit millions of American consumers, particularly younger shoppers who flock to sites like Shein and Temu for affordable fashion, electronics, and home goods

.Both platforms have surged in popularity in the US, driven by viral videos and budget-conscious Gen Z buyers.

The tariff hike is expected to disrupt their business model, which relies heavily on shipping low-value packages directly from China to individual customers.

The head of France’s Medef business lobby group warned on Wednesday that US tariffs, that are deepening a global trade war, could hit economic growth and lead to a recession.

“Of course I am worried,” Patrick Martin told RTL radio when asked about the impact of US tariffs on Fench businesses.

“The risk is that growth will stall and that we go into a recession,” he added.

Below is The Independent’s breakdown of the countries most affected by the new levies and those that have been exempt.

Vietnam’s deputy prime minister Ho Duc Phoc will meet US treasury secretary Scott Bessent on Wednesday, according to a Reuters report citing an internal schedule, as Hanoi moves to ease tensions following a steep tariff hike by Washington.

Last week, the Trump administration slapped Vietnam with a 46 per cent tariff – one of the highest rates announced – prompting urgent efforts from the Southeast Asian nation to negotiate a compromise.

White House trade adviser Peter Navarro on Monday dismissed Vietnam’s offer to remove tariffs on US imports, saying it “means nothing to us”.

The tariffs pose a serious threat to Vietnam’s trade-driven economy. According to the World Bank, exports of goods and services made up nearly 87 per cent of the country’s GDP in 2023.