Stock markets fall at fastest rate since financial crisis

Send us your questions for Trump 100 Q&A

Mexico is "stealing" water from Texas and could face additional tariffs if it doesn't stop, Donald Trump has claimed.

Farmers in the Lone Star State are being "hurt" by Mexico, Trump said, referencing an 81-year-old agreement.

Under the 1944 Water Treaty between the two countries, Mexico must send the US 1.75 million acre-feet of water from the Rio Grande every five years. 

An acre-foot of water is enough to fill about half an Olympic-sized swimming pool. 

"Mexico has been stealing the water from Texas Farmers," Trump said on Truth Social. 

He added: "We will keep escalating consequences, including TARIFFS and, maybe even SANCTIONS, until Mexico honours the Treaty, and GIVES TEXAS THE WATER THEY ARE OWED!"

Mexico's President Claudia Sheinbaum posted on X that Mexico has suffered a three-year drought but has been complying with the water treaty "to the extent water is available". 

The so-called Wolf of Wall Street Jordan Belfort has broken his silence on Donald Trump's tariffs, weighing in on questions of insider trading at the White House.

Opponents say the president has questions to answer after he said it was a "great time to buy" shares - four hours before the stock market surged on Wednesday when he paused tariffs.

But Belfort told Sky News' Gillian Joseph the fact Trump made the statement on social media meant it was public, rather than him tipping off a few people.

Speaking on The World programme, Belfort said: "I personally don't find it overly suspicious. Especially since he's told it to everybody at once.

"If he hadn't said anything and told five of his best friends 'I'm gonna ease this tariff situation - you should be buying', that would be illegal."

Insider trading is when people take advantage of non-public information to buy or sell shares and make a gain.  

'Insane' trade imbalance

Belfort added that while he was against tariffs generally, Trump's dramatic intervention was necessary as the US has an "insane" trade imbalance and imports far more than it exports.

"The United States has been drained of its wealth, drained of its factories," he said.

"It's not gonna be pretty," Belfort added. "There's going to be pain - but the path we were on before is simply unsustainable. It had to change." 

The UK economy grew unexpectedly in February - but that feels redundant now after Donald Trump's tariffs, says business and economics correspondent Gurpreet Narwan.

The figures, which show the economy grew by 0.5% rather than the expected 0.1%, are already out of date.

"It might be the last growth we see now that Donald Trump has imposed sweeping tariffs on countries across the world," Narwan says.

"He's rowed back, but we're still being hit with that 10% tariff."

There is still a huge trade war unfolding between the world's largest economies, Narwan says: "That will have ripple effects for the global economy, including in the UK." 

Asian markets fell overnight after further turmoil on US markets - which closed down yesterday.

The rebound in American stocks after Donald Trump's 90-day tariffs pause on Wednesday was short-lived as fears of a US-China trade war bite. 

Japan's Nikkei tumbled 4.3% on the day, while stocks in South Korea fell nearly 1%.   

Meanwhile, Hong Kong shares, which had been on track for their worst week since the 2008 crash, rallied more than 2% in afternoon trading.

In China, which faces the highest tariffs of 145% as Trump pursues a trade war with Beijing, the yuan rose against the dollar.

The Chinese currency had fallen to an all-time low in offshore trading on Tuesday but erased those losses a day later and surged again yesterday. 

Gold prices have hit a record high as the tariffs fallout continues to reverberate around global markets.

The yellow metal climbed in value as investors dumped Wall Street stocks overnight.

The rally in US markets following Donald Trump's pause on higher tariff rates proved to be short-lived, with investors turning to perceived safer havens like gold instead.

An ounce of gold now fetches $3,205.21 (£2,465.66). 

Democrats in Congress have questioned whether President Donald Trump and his allies may have acted improperly on his declaration on Wednesday that it was a "great time to buy" stocks.

He made the comment shortly before announcing he was cutting back on some of his new tariffs - a move that sent markets rallying. 

House minority leader Hakeem Jeffries said Democrats "need to get to the bottom of the possible stock manipulation that is unfolding before the American people".

He added: "What, if any, advanced knowledge did members of the House Republican Conference have of Trump's decision to pause the reckless tariffs that he put into place?"

Jeffries said several members of Congress will be "aggressively demanding answers and transparency". 

The White House denied that Trump was engaging in market manipulation and accused Democrats of "playing partisan games".

Pedro Sanchez, the Spanish prime minister, is visiting China, Donald Trump's top target for trade tariffs.

The Spanish leader is on his third trip to the country in two years as his government seeks to boost investment from Beijing.

Sanchez met Xi Jinping, the Chinese president, as well as business leaders from several Chinese companies, many of which produce electric batteries or renewable energy technologies.

It comes amid speculation that European countries - disheartened by Trump's tariffs regime - may pivot to China as the global trade picture evolves.

"A trade war favours no one. We all will lose," Sanchez said after meeting with Vietnamese leaders in Hanoi yesterday, where he signed commercial agreements before his visit to Beijing.   

Good morning and welcome back to our live coverage of the fallout from Donald Trump's tariffs and the reverberations going through the world's financial markets.

Here's a summary of the main talking points as we kick off this chilly Friday morning:

• The tariff rate on most Chinese goods is now at 145%, the White House says;
• Donald Trump acknowledged some tariff "transition difficulty" during a cabinet meeting yesterday;
• The EU has paused its retaliatory tariffs on the US in an olive branch to Trump to pursue negotiations;
• Democrats have questioned whether the president engaged in insider trading.

We'll be back tomorrow with more of the latest reaction and fallout to Donald Trump's tariffs and the global trade wars being sparked as a result.

Before then, here's a rundown of what's been happening today:

• The White House says its tariff rate on most Chinese goods is now at 145%;
• Donald Trump acknowledged some tariff "transition difficulty" during a cabinet meeting;
• But added he believes the US will "end up working out something" with China "that's very good for both countries";
• Elsewhere, the EU put retaliatory tariffs against the US on hold following Trump's pause.

If you'd like to read more in depth analysis on Trump's tariffs from our team of experts, you can here:

• Helen-Ann Smith, Asia correspondent - China believes capitulating to Trump serves no purpose and isn't an option
• Dominic Waghorn, international affairs editor - China is ready for trade war with the US - it's not clear Trump knows what he's taking on
• Ian King, business presenter - Donald Trump has finally blinked - but it's not the stock markets that have forced him to act