Tariffs latest: China hits US with new 125% levy - and says 'bully' US must end 'destructive behaviour'

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:

• China hit back at the US's levies with a new 125% tariff on American imports;
• In response, the White House said Trump would "hit back harder" when the US is hit;
• Meanwhile, Wall Street indexes and Asian markets opened to lows on Friday, while UK stocks were slightly up;
• White House press secretary Karoline Leavitt told reporters more than 75 countries have reached out to the US for trade deals;
• And Blackrock CEO Larry Fink warns the US is "very close, if not in a recession now".

And if you missed it earlier, catch up on our Trump 100 Q&A podcast here:

Tariffs will accelerate inflation this year, the head of New York's Federal Reserve has said.

John Williams tells the Puerto Rico Chamber of Commerce that it's "hard to know with any precision how the economy will evolve".

But given "the combination of the slowdown in labour force growth due to reduced immigration and the combined effects of uncertainty and tariffs," he says: "I now expect real GDP growth will slow considerably from last year's pace, likely to somewhat below 1%". 

Karoline Leavitt's daily news briefing felt like a "hold the line type news conference" to our US correspondent Mark Stone.

 "There was nothing particularly new in it," he says. "No major announcements. And it was actually quite short, compared to some of her other news conferences."

Stone says it was interesting to hear Leavitt's comments on the bond market though, with the press secretary saying treasury chief Scott Bessent was keeping a close eye on it.

"Economic experts said it was the bond markets and the sell-off  of American bonds globally which spooked Donald Trump," Stone adds.

"And it was a meeting that Scott Bessent had with Donald Trump last Sunday at Mar-a-Lago which was the beginning of a process, which saw him blink and put that pause of 90 days in."

The White House press briefing has now come to an end.

Before she finished, Karoline Leavitt revealed that more than 15 trade deals with countries hit by US tariffs are close to being completed.

She did not say which countries were set to sign agreements, but said "very good progress has been made".

She adds that "we will cut those deals as soon as we possibly can", before saying they will be "country by country, tailor-made deals" as "they all propose unique challenges and unique assets".

Leavitt then says that if no trade deal is agreed by the end of Donald Trump's 90-day pause on tariffs, "we'll make that decision that we're taking on a different subject".

When asked why Donald Trump has not yet spoken to Chinese President Xi Jinping yet, Karoline Leavitt said that if Beijing "continues to retaliate, it's not good news".

She says Trump "wants to do what's right for the American people" and "wants to see fair trade practices around the globe".

Confirming the tariff rate on China remains unchanged at 145%, she adds: "The president made it very clear when the United States is punched, he will punch back harder. 

"And he hopes to make a deal that benefits the American worker and our companies that have been ripped off for far too long.

"And he's finally taking bold and courageous action to do that." 

Another reporter then asks why the US' allies would support a weakening China in a trade war, to which she says: "They've made it very clear they need the United States of America. 

"They need our markets. They need our consumer base."

Karoline Leavitt is now defending Donald Trump's tariff and trade policies - saying it will "drive down the cost of living in this country".

The White House press secretary said his agenda "is to bolster our manufacturing industries here in our country, to bring down the cost of living here in our country, and to ensure that we are maintaining critical supply chains here in America". 

She then says the US "cannot be dependent" on countries like China "if we want this country to be strong and wealthy," and that tariffs will help "restore wealth to America by shoring up jobs here at home".

Leavitt adds, "Americans should trust in that process".

Karoline Leavitt is now speaking, and says more than 75 countries have reached out to strike trade deals with the US.

"The phones have been ringing off the hook to make deals," she says.

She adds that countries coming to make deals have "wisely heeded President Trump's warning not to retaliate" to tariffs.

"As a result, they were rewarded with a 90-day pause and substantially lower reciprocal tariff rates during this period."

We're still waiting for White House press secretary Karoline Leavitt to begin her daily news briefing.

In the meantime - a survey of American consumers has found that attitudes toward the US economy dropped sharply this past month.

The University of Michigan Surveys of Consumers said its Consumer Sentiment Index dropped to 50.8 this month from a final reading of 57.0 in March.

Surveys of Consumers Director Joanne Hsu says the decline in confidence "was pervasive and unanimous across age, income, education, geographic region and political affiliation".

She adds that survey respondents reported "multiple warning signs that raise the risk of recession: expectations for business conditions, personal finances, incomes, inflation, and labour markets all continued to deteriorate this month".

Interviews for the survey were conducted between 25 March and 8 April, meaning they include "Liberation Day" and the fallout from Donald Trump's sweeping tariffs.

We'll shortly be able to bring you the latest news straight from the White House Briefing Room.

Press secretary Karoline Leavitt will speak to reporters and will almost certainly be asked about the latest developments in the US-China trade war.

You can watch the briefing live below. We'll also share the key updates right here.

China's foreign ministry says that if the US "truly wants to have talks, it should stop its capricious and destructive behaviour".

The post on social media came after Beijing raised tariffs on US goods to 125% - with the new levy in effect tomorrow (see 9.06am post).

"Give the bully an inch, he will take a mile," spokesperson Lin Jian added.