Image source, Getty Images

It's been another day of dramatic and not-so-dramatic developments on the global trade front.

Donald Trump's 25% tariffs on all aluminium and steel imports into the US was the focus of the meeting between the US president and the Irish Prime Minister Micheál Martin at the White House on Wednesday, meant to mark the upcoming St. Patrick's Day.

The European Union has announced counter-tariffs on €26bn (£21.9bn, $28.3bn) worth of American goods, to which Trump said he would respond.

Canada announced similar measures, saying it will place similarly place tariffs on more than $20bn worth of US goods, further escalating the tariff war between the two neighbours.

UK Prime Minister Keir Starmer said his government will "keep all options on the table" when it comes to Trump's global tariffs.

Donald Trump sees the tariffs as a key part of his economic vision to boost US manufacturing, but critics say they will raise prices for US consumers in the short term.

• We are closing our live coverage of the tariffs for now. Thank you for joining us. You can read all about the day's developments here.

...and can Elon Musk afford a tumble in Tesla's share price?

The world is bracing itself as Donald Trump enacts his global tariffs. As the president begins to enforce them upon the rest of the world, the Americast team assemble to ask whether Trump’s bet on tariffs might be a bad deal for the US. How have the markets reacted, and does Trump actually care?

Plus, why has Donald Trump bought a Tesla - even though he isn't allowed to drive it?

Have a listen to the latest Americast episode below, on BBC Sounds, or wherever you find your podcasts.

The United States-Mexico-Canada trade agreement (USMCA) was renegotiated and signed in 2020 during Donald Trump's first term.

The agreement aims to reduce barriers between the three countries in regards to their imports and exports, meaning certain goods have lower, or even no tariffs on them when they enter a country.

Around half of Mexico's goods are covered by the USMCA, that percentage is less for Canada.

The new tariffs appear to break the terms of the agreement on trade, which also continued a largely duty-free trading relationship between the three neighbouring countries.

It's due to be renegotiated again by the three countries in 2026.

Canada's trade minister Mary Ng says Donald Trump's tariffs violate the United States-Mexico-Canada Agreement (USMCA).

"Canada is deeply disappointed that the US has chosen to reimpose these unjustified tariffs that hurt workers and businesses on both sides of the border," she says in a statement posted on social media.

She says Ottawa is seeking formal consultations with Washington on the tariffs on steel and aluminium.

"Instead of imposing unwarranted trade barriers, the US should work with Canada as a trusted trade partner," she adds. "We will continue to pursue all available avenues to challenge these unfair and detrimental trade actions."

Bernd Debusmann Jr
Reporting from the White House

Image source, Bernd Debusmann Jr / BBC

Just a short while ago, we heard from Peter Navarro, a senior trade advisor at the White House and one of the most vocal defenders of Donald Trump's economic policies.

Briefly speaking to reporters outside the West Wing, Navarro pointed to a number of economic factors - such as slowing inflation figures and a drop in gasoline prices - as signs that the US economy is improving.

The figures, he said, are the "heart and soul of the Trump revolution."

Navarro added that the administration is "trying to build a world in which, as in the first term, we have a lower regulatory burden, particularly for small businesses."

He also briefly addressed tariffs, saying that he hopes that "the best tax cut in American history" will be funded, in part, by tariffs.

While Navarro took no questions, he acknowledged that the economy is going through "a transition", saying it's a result of policies from the Biden administration - a talking point repeated by other administration officials over the last several days.

Image source, Getty Images

Officials in Mexico and Brazil say they won't introduce retaliatory taxes on the US just yet.

Brazil is the second largest supplier of steel to the US. Mexico is the third.

Speaking today, Mexican President Claudia Sheinbaum says they will not yet retaliate to the US tariffs on metals, and instead they will wait until the April deadline.

Brazil's Finance Minister Fernando Haddad told reporters that in the past they "have negotiated in less favourable conditions".

He adds that the US "only stands to lose" from the tariffs.

Faisal Islam
Economics editor

When Trump announced a 25% tariff on steel imports in his first term, we were part of the EU's response. At the time, we had voted for Brexit but hadn't left yet.

On this occasion, the UK has chosen to play a longer game.

The prime minister and Trump had a nice meeting, where they talked about an economic deal. The UK strategy, it seems, is not to rock the boat on steel - because there might be a bigger win in terms of no tariffs elsewhere, and perhaps a lowering of tariffs in some other deal in the future.

It does stand out, when you consider what's happening with the EU and Canada.

In February, shortly after his inauguration, Donald Trump threatened that the European Union would be hit with tariffs "pretty soon".

The US president warned that this is due to a trade deficit with the bloc - meaning its member states export more to the US than they import.

"They don't take our cars, they don't take our farm products, they take almost nothing and we take everything from them. Millions of cars, tremendous amounts of food and farm products," he told journalists.

Now after 25% tariffs were introduced on all steel and aluminium imports to the US today, the chart below shows how trade between the EU and US might be affected.

Brandon Drenon
Reporting from Washington DC

Image source, JoJo Burgess

JoJo Burgess knows steel. He's been working in Pennyslvania's steel mills for over two decades. And before him, both of his parents were also steel workers.

But what he's seeing from the Trump adminstration - a tariff tit-for-tat with longstanding trade allies - is something Burgess says he's never seen before.

"Nobody knows what this guy is doing," he says. "I don't know what to say, to be honest with you."

He tells me that in 2018, the last time Trump imposed steel tariffs, he and others in the steel industry greatly benefited.

"We were getting tens of thousands of dollars in profit sharing checks. That's extra free money in your check. Who wouldn't be excited about that," he says.

Although Burgess stands to make more money, he's worried about the larger implications a trade war presents for the US economy. He'll likely earn more, he says, but the effects would likely be blunted by rising costs elsewhere.

"Our individual industry is going to be okay with the tariffs. But what happens is it destabilizes the whole economy. Just look at the stock market," he says.

Michelle Fleury
New York business correspondent

Image source, Getty Images

In what's already been a wild week for trade moves, Donald Trump's 25% tariffs on steel and aluminium imports have kicked in - a reboot and expansion of policies he first tried back in 2018.

And like last go around, it's unclear whether this supercharged version will address the fundamental imbalances in the metals trade or simply provoke retaliation - as we've already seen from the EU and Canada.

This week's World of Business newsletter - you can sign up here - explores how the scenario might develop, as well as examining the likelihood of a recession in the US.

The outlook? The US steel industry, which has been underperforming, is welcoming the tariffs as a boost to domestic production.

But, the aluminium industry, which is heavily reliant on Canadian imports, warns the tariffs will drive up costs and hurt competitiveness.

You can read on here for more on how the larger issue of China's overcapacity remains unresolved - and how reciprocal tariffs set to roll out in April may have a far greater impact worldwide.

Leavitt was also asked about a statement by the American Automotive Policy Council on Donald Trump's steel and aluminium tariffs, which says the tariffs will add "significant costs for automakers, suppliers and consumers".

Speaking to Fox News, Leavitt replied that President has been "incredibly clear" on what he envisions for the United States through these tariffs, which is to "restore this country as the manufacturing superpower of the world".

Bernd Debusmann Jr
Reporting from the White House

Image source, Getty Images

Press Secretary Karoline Leavitt briefly spoke to reporters here at the White House a short while ago.

While many of the questions revolved around foreign policy issues - specifically Ukraine - she also fielded a few about tariffs and the US economy.

Asked when the economy becomes President Trump's responsibility, rather than the Biden administration's, Leavitt responded that "we've only been here for 52 days."

"The President is working hard every day to bring down the cost of living, which we see is already happen," she said, also mentioning falling egg and gasoline prices.

She said that the administration believes falling prices are due to "massive regulatory efforts" and promises to "drill, baby, drill" to increase US energy supplies.

Leavitt claims that $180bn - about 2,000 per US citizen - have been saved.

At yesterday's news briefing, Leavitt repeatedly defended the president's stance on tariffs in what was an occasionally tense and combative question-and-answer session with reporters.

Chris Page
BBC News Ireland correspondent

Image source, Reuters

The Irish Prime Minister Micheál Martin had a delicate diplomatic challenge, as he met President Trump in the midst of a US-EU trade war just a little bit ago.

Trump spoke about a "massive" trade imbalance between the US and Ireland, and said Ireland was "of course" taking advantage of the US.

But the mood remained civilised.

Trump repeatedly stressed that he didn't blame the taoiseach for what he saw as the unfair trading relationship – even saying that it showed “the Irish are smart”.

The president aimed his ire at the European Union, rather than Ireland – and didn't make much of the fact that Ireland is an EU member state.

Martin politely made the point that the countries' economic relationship is increasingly a "two-way street", with Ireland contributing valuable investment to America.

Left-wing opposition parties in Dublin have criticised the taoiseach for being too deferential.

But Martin's team will be largely pleased that 51 minutes in front of the cameras in the Oval Office passed off cordially.

Sejourne moves to discuss steel now, saying all imports of the product to the US have been hit with a 25% tariff, beginning today.

He says although it isn't very "profitable now", they must protect the sector. It's easy to "throw away industry", he adds.

Europe is perhaps a little bit ahead of the game compared to the US, he goes on, saying Washington has "now found themselves in regulatory unpredictability".

"We in Europe have rules," he says, and they are "very well known".

And with that, the short news conference has finished.

We're now listening to Stephane Sejourne, the European commissioner for internal market and services.

He says the EU has a partner who is refusing to enter a dialogue on trade - he doesn't specify, but it appears he's referring to the United States.

He says Europe will continue to offer a hand of friendship, but needs to take action to protect its people.

"We will continue to react on trade to defend our economy and jobs," he says.

The news conference with European Commission officials has started.

Kryzsztof Paszyk, Polish minister of development and technology, is the first to speak. You can watch a translated stream by pressing watch live at the top of this page.

We'll bring you the key lines here.

The European Commission is set to hold a news conference soon, which will focus on tariffs amid an intensifying trade war between the US and some of its key trading partners.

The event is due to begin in about 15 minutes.

Stick with us for updates, and you can follow along by clicking watch live at the top of the page.

Faisal Islam
Economics editor

It's difficult to convey the shift in sentiment about the US economy in just six weeks.

At the World Economic Forum in January, there was absolute euphoria about the dominance of the US economy.

That has flipped, and pretty suddenly. It's not just about the tariffs, but a total uncertainty and chaos.

In the short term, there is the possibility of a recession. Long term, Trump says they'll change the wiring of the US economy and bring back manufacturing to the Rust Belt.

By the way, that process was already started by Biden through subsidies. Trump says tariffs will be a more effective weapon.

The US is a relatively closed economy compared to Europe. You can see how this could end up being politically successful, where it needs to be.

But certainly from a global economic perspective, it is a disaster. The tariffs are harder, more extensive, and the retaliation is pretty hard too - Canada is setting a pretty high bar.

We're seeing video feed from Trump's meeting with the Irish prime minister in the Oval Office.

Discussing the EU's counter-measures the 27-member bloc announced today, Trump says "whatever they charge us with, we're charging them".

He says if the EU charges 20% or 200% it does not matter, they will face the same.

"We have been abused for a long time, and we will be abused no longer," he says, claiming the EU "treats us very badly".

How big is the US trade deficit with the EU?published at 16:54 Greenwich Mean Time

16:54 GMT

By Tamara Kovacevic

The US buys more from the EU than it sells to it, meaning it has a trade deficit with the bloc, but how big is this?

President Trump has repeatedly said it is $300bn (€275bn).

Talking to the BBC’s Today programme, Pascal Lamy, a former EU trade and World Trade Organisation (WTO) head, called Trump’s figure “dead wrong”. He said the US deficit with the EU was $50bn (€46bn) – “six times less”– if you take both goods and services into account (Trump has not specified).

Lamy is right according to the EU’s latest estimates which put the US total deficit at $52bn (€48bn) in 2023. However, US government figures say the deficit was much higher - $132bn (€121bn).

We can’t find any mention of Trump’s $300bn in the official figures.

The discrepancy between EU and US figures is likely to be due to different ways of measuring trade, especially the trade in services.