Trade war looms over G20 as Trump attacks India over tariffs - as it happened
Rolling coverage of the latest economic and financial news, as US president blasts India for raising tariffs on American goods
- Latest: China to present 'trade terms' to Trump
- Fact check: Is Trump right about China?
- Trump: New Indian tariffs are unacceptable
- India has imposed retaliatory tariffs on apples, walnuts etc
- Trump: I might put more tariffs on China
6.24pm BST
Time for a recap.
I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further. This is unacceptable and the Tariffs must be withdrawn!
Related: Theresa May: Swiss holidays brought home impact of climate crisis
5.32pm BST
Investors around the globe are trying to square the White House's 'good-cop'/'bad-cop' commentary on the trade war with China, says analyst Ken Odeluga of City Index.
Trump's "Plan B" is to "take in billions and billions of dollars a month" more from China while doing "less and less business" with the second-largest economy. His Treasury Secretary Steven Mnuchin remained "hopeful" on Wednesday.
Other Washington hawks bat away Beijing's insistence on a 'balanced' deal. Little wonder that ample dissonance accompanies the wide expectation that a tariff ceasefire will be agreed this weekend.
5.21pm BST
5.08pm BST
European stock markets have closed after a day of subdued trading.
The Stoxx 600 index, which covers Europe's biggest companies, ended the day basically unchanged. Investors are hunkering down ahead of the formal start of the G20 summit on Friday.
Wall Street is feeling pretty good that only Elizabeth Warren and Bill De Blasio said they'd eliminate private health insurance in favor of a government-run plan https://t.co/aPLhfVOHeN pic.twitter.com/8dOzdyRfmJ
4.44pm BST
Heads-up: One of Donald Trump's top advisors has warned that America could press on and raise tariffs on Chinese imports.
Larry Kudlow, director of the National Economic Council, has said America is insisting on 'structural changes' to China's intellectual property laws, with effective enforcement for any breaches.
"If need be, we may move ahead - we may move ahead on additional tariffs.
We have word from the WH --> Kudlow says there are no preconditions set ahead of any trade talks with China. (per @Reuters, Fox News)
4.28pm BST
This G20 summit is Theresa May's last big foreign trip before stepping down as PM.
She's expected to hold meeting with Australian PM Scott Morrison, Turkey's Recep Tayyip ErdoAan, South Africa's Cyril Ramaphosa and Saudi crown prince Mohammed bin Salman.
Quite the lineup for Theresa May's one-to-one meetings at this G20 summit in Osaka - Putin, Mohammad bin Salman, Erdogan...And Trump will be here too, of course. So much for that "rules-based global order" she prizes.
3.37pm BST
The leaders of China and Japan, Xi Jinping and Shinzo Abe, have held a meeting in Osaka ahead of the G20 meeting.
Around the time of the cherry blossoms next spring, I would like to welcome President Xi as a state guest to Japan, and hope to further elevate ties between Japan and China to the next level.
"He didn't surprise me but he surprised a lot of other people.
"See, I knew him. See, I said you're going to do very well, and he did, he did that.
Related: Scott Morrison flags Trump-style economic plan in pledge to cut more red tape
2.40pm BST
Big news in the UK car sector -- Vauxhall's Ellesmere Port plant in the North West of England has won the chance to manufacture its new Astra vehicle.
That's a big win for the plant, which employs 1,100 people, and has beaten off competition from a rival plant in Gliwice, Poland.
The decision on the allocation to the Ellesmere Port plant will be conditional on the final terms of the UK's exit from the European Union and the acceptance of the New Vehicle Agreement, which has been negotiated with the Unite Trade Union.
Wow - IF UK strikes a strong post-#Brexit deal, Ellesmere Port WILL make the next-generation Vauxhall Astra. Over to you, HM Gov...
It's potentially a massive, massive win for UK automotive, as Ellesmere Port will be winning ahead of Gliwice in Poland. Russelsheim, Germany will also make the next-gen model. Don't let it slip, @BorisJohnson.
2.30pm BST
Donald Trump is due to hold meetings with a series of world leaders at the G20 summit -- including several fellow 'strong men'.
Top of the list is president Xi Jinping. If the WSJ is right, Xi will urge Trump to accept China's proposals to pause the trade war and resume talks. The success, or otherwise, of those talks will swiftly move the financial markets.
The age of the alpha males is definitely not over. Trump's meetings at the G20 starting Friday afternoon: Putin, Bolsonaro, MbS, Xi Jinping, Erdogan
2.05pm BST
1.38pm BST
It's just been confirmed that America's economy grew at a steady pace in the first quarter of 2019.
US GDP expanded at an annualised rate of 3.1% in January-March, says the commerce department in its latest assessment, matching earlier readings.
*U.S. 1Q GDP GREW AT UNREVISED 3.1% PACE; EST. 3.2%
12.40pm BST
Donald Trump is also due to meet Turkish president Recep Tayyip ErdoAan at the G20.
That could be a challenging meeting, as the US is preparing sanctions on Turkey if it goes ahead with the purchase of a Russian anti-aircraft missile system.
"Whilst Turkey is facing some serious fundamental challenges, geopolitical events are complicating matters further. Ankara and Washington are on a collision course over the imminent deployment of Russian missiles and its support for Iran, Russia and Qatar versus the US- supported Saudi Arabia and Israel.
"Trump and Erdogan are meeting at the G20 in Japan this weekend. We expect this meeting to be fiery and believe it will result in sanctions, knocking investor confidence even further."
12.35pm BST
Donald Trump has been whisked from the airport to dinner, with Australia's prime minister Scott Morrison (fresh from his re-election).
"The impact of any further deterioration of the relationship will not be limited to these two major powers.
The balance between strategic engagement and strategic competition in the US-China relationship has shifted. This was inevitable."
12.14pm BST
Despite the UN finding "credible evidence" that Saudi Arabia is responsible for the killing of journalist Jamal Khashoggi last year, crown prince Mohammed bin Salman is still welcome at the G20 meeting.
MBS has landed at Osaka, where he's expected to meet with Donald Trump on Saturday.
12.00pm BST
European stock markets have dropped into the red, as investors worry that Donald Trump will not accept China's reported demands to end the trade war.
The EU-wide Stoxx 600 is now down 0.2%, with losses in London, Paris and Amsterdam (all down around 0.4%).
11.26am BST
Significant news on the trade war: China is planning to present Donald Trump with the proposed terms of a settlement to end their trade war.
That's according to the Wall Street Journal, which is reporting that Beijing has drawn up several conditions, including
The U.S. chief trade negotiator, Robert Lighthizer, and his Chinese counterpart, Liu He, talked by telephone this week on ways to get the talks back on track and expect to meet in person in advance of the presidents' Saturday lunch meeting after a Group of 20 summit in Osaka, said people familiar with the discussions. It is far from clear what the two will manage-and whether their bosses will approve their work.
Despite his preconditions, Mr. Xi isn't expected to take a confrontational tone with Mr. Trump, according to the Chinese officials. Rather, they say, he will sketch out what he envisions as an optimal bilateral relationship, which includes China's help on security issues vexing to the U.S., especially Iran and North Korea.
China's Xi to present Trump with a set of terms for settling the trade fight, including lifting a ban on sales to Huawei https://t.co/6GpBuV6DlZ via @WSJ
11.07am BST
11.00am BST
Air Force One has touched down in Osaka, bringing Donald Trump and his entourage to the G20 meeting.
The President has just left the plane, walked down the steps clutching an umbrella (luckily for him, the wind has died down a little). His daughter Ivanka was close behind.
With the help of an umbrella, Pres Trump steps off Air Force One. Surprised there's no G20 logo on it. Greeted by US and Japanese officials on the tarmac. pic.twitter.com/2mkMs7pOOy
10.54am BST
U.S. Secretary of State Mike Pompeo has been spotted in Osaka, having stopped off in India for meetings on his way to the G20 summit.
Great friends are bound to have disagreements. The United States has been clear we seek greater market access and the removal of trade barriers in our economic relationship.
And today, I address these differences in the spirit of friendship and I think that the two of us will be able to see a good outcome for each of our two countries,"
10.32am BST
The stormy weather at Osaka airport may, alas, match the mood inside the G20 summit over the next few days.
Donald Trump has now picked fights with three major international rivals:
US President Donald Trump set the tone Thursday for what promises to be a stormy G20 summit by lashing out at friends and foes alike over trade tariffs and foreign policy.
The long-running US-China trade war looked set to dominate the two-day meeting of world leaders in Osaka from Friday but clashes also loomed over climate and a series of hotspots ranging from North Korea to Iran.
#UPDATE US President Donald Trump has set the tone for what promises to be a stormy #G20 summit by lashing out at friends and foes alike over trade tariffs and foreign policy. https://t.co/hXr1sAlmKy #G20Osaka #USChinaTradeWar pic.twitter.com/EQ6FSQvqg0
10.14am BST
The first casualty of the G20 meeting appears to be umbrellas, as the Osaka weather strikes.
10.01am BST
Donald Trump raised the heat ahead of his meeting with president Xi, by claiming that China's economy was "going down the tubes".
But is he right, or is this just White House hyperbole?
Related: Trump fact check: is China really 'going down the tubes' ?
9.51am BST
Anyone attending the G20 meeting needs to have packed their best warm, waterproof clothes.
World leaders arriving at Kansai airport in Izumisano city, Osaka, are getting a wet and windy reception - umbrellas and coats are certainly required.
9.42am BST
A friendship characterised by warmth and the promise of a bright future.
Prime Ministers @narendramodi and @AbeShinzo hold talks in Osaka, the first such meeting between these leaders since the start of Japan's Reiwa era.
Many aspects of India-Japan relations were discussed. pic.twitter.com/59CiuBHZWA
9.39am BST
Over in Osaka, world leaders have been arriving ahead of the G20 summit (which runs from Friday to Saturday).
Greeting each other as best friends do!
Japanese PM @AbeShinzo warmly welcomes PM @narendramodi ahead of their bilateral meeting. #G20OsakaSummit pic.twitter.com/7SwlmxCMUq
9.30am BST
European stock markets have also risen this morning, boosted by hopes of a US-China trade ceasefire.
This weekend is extremely important for the future direction of global stock markets. The G20 summit will include trade talks between the US and China and investors will be looking for any sign that the two countries can sort out their differences.
9.04am BST
It's worth reiterating that India only hiked tariffs on US goods in retaliation for America imposing new tariffs on its steel and aluminium exports.
Narendra Modi's government had sought an exemption to those tariffs (which Donald Trump imposed as part of his plan to support American steelmakers).
Missing from this tweet: India's latest salvo was in response to US decision to raise its own duties on Indian goods... https://t.co/6Yq53PmfPO
8.51am BST
India's stock market is taking Trump's trade tweet in its stride.
"Markets are jittery due to the uncertainty coming from the trade tiffs between U.S. and China and markets will continue to be cautious till the conclusion from the G20 meeting comes out.
8.44am BST
Intriguingly, the South China Morning Post is reporting that Washington and Beijing have "tentatively agreed" a trade war truce.
This ceasefire (if confirmed), would give them a window of opportunity to resume negotiations to end the trade war.
Details of the agreement are being laid out in press releases in advance of the meeting between Chinese President Xi Jinping and US President Donald Trump at the Group of 20 leaders summit in Osaka, Japan, this weekend, according to three sources - one in Beijing and two in Washington.
Such an agreement would avert the next round of tariffs on an additional US$300 billion of Chinese imports, which if applied would extend punitive tariffs to virtually all the country's shipments to the United States.
#Breaking: Trade war: US and China agree tentative truce before #G20 summit https://t.co/L7iBbmCBkQ
8.41am BST
Stock markets are rising today, on hopes of trade war progress at the G20 meeting.
China's CSI 300 index has risen by 1%, while Japan's Nikkei gained 1.2%.
8.24am BST
Donald Trump's tweet about India's tariffs has set the tone for the G20 summit, taking place on Friday and Saturday.
Trump fighting on all fronts at the G20 https://t.co/HOmF1xcmoi
8.09am BST
The Indian government isn't accepting Trump's criticism, reports Reuters:
India's tariffs are not that high compared to other developing countries, Indian government sources told Reuters on Thursday, reacting to United States President Donald Trump's call to withdraw what he said were very high tariffs.
Earlier Trump tweeted that he looked forward to meeting Indian Prime Minister Narendra Modi at the G20 summit in Japan, but said that for years India had put "very high tariffs against the United States". Adding: "This is unacceptable and the tariffs must be withdrawn!"
Indian government sources refute Trump claim that its tariffs are very high (Reuters) https://t.co/GAFIloWW5K
7.49am BST
Good morning, and welcome to our rolling coverage of the world economy, the financial markets, the eurozone and business.
The threat of a global trade war is looming over the markets today, as world leaders prepare for a crunch meeting in Japan.
I look forward to speaking with Prime Minister Modi about the fact that India, for years having put very high Tariffs against the United States, just recently increased the Tariffs even further. This is unacceptable and the Tariffs must be withdrawn!
Just stopped in Alaska and said hello to our GREAT troops! pic.twitter.com/oLYn1mpaVm
"China's economy is going down the tubes - they want to make a deal.....
"You have another $325bn that I haven't taxed yet - it's ripe for taxing, for putting tariffs on."
"A lot of companies are moving to Vietnam, but Vietnam takes advantage of us even worse than China. So there's a very interesting situation going on there."
Related: Trump warns China is 'ripe' for new tariffs and suggests Vietnam could be next
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