Trump news live: U.S. forecast to enter recession after Trump crashes markets with tariffs on Canada, China and Mexico

Let’s get back to the president’s trade hostilities.

London’s FTSE 100 Index has fallen from Monday’s record highs following Trump’s decision to move forward with planned tariffs against Canada and Mexico and to double levies on Chinese imports.

The index initially dropped by more than 60 points before settling to stand around 0.5 per cent down at 8823.

Across Europe, Germany’s Dax index fell by 1.7 per cent, while France’s Cac 40 was down by 1 per cent.

Here’s the latest from Holly Williams.

The president has promised to “tell it like it is” when he delivers a State of the Union speech in all but name this evening to a joint session of Congress.

Here’s what to look out for.

The other big news out of the Trump administration this morning is that it has moved to suspend aid to Ukraine after the president’s feud with Volodymyr Zelensky escalated on Monday.

Trump became incensed by the Ukrainian saying in an interview that the end of the war with Russia is “very, very far away” and accused him of not wanting peace.

Here’s the latest on that disastrous development for Kyiv from Josh Marcus.

Donald Trump’s introduction of his long-threatened 25 percent trade tariffs on Mexico and Canada has caused global stock markets to drop sharply, with the Dow Jones, S&P 500 and Nasdaq all falling.

Investors, fearful of a trade war erupting, had hoped the president might relent in his promise to penalize imports from the nation’s two biggest trading partners but Trump told reporters at the White House on Monday that there was “no room left for Mexico or for Canada. The tariffs, they’re all set. They go into effect tomorrow.”

The president also said that he would impose an extra 10 percent tariff on China, on top of the previous 10 percent tariff he introduced last month, with Beijing already retaliating.

The unease has already led to warnings that the U.S. could be heading for recession, with the Atlanta Fed’s GDPNow model estimating real GDP growth for the first quarter of 2025 at -2.8 percent, down from +3.9 percent just four weeks ago.

Here’s the latest from Io Dodds.

Musk’s team claimed they had canceled a Coast Guard contract between the maritime department and a company that provides entities administrative assistance. According to DOGE, killing the contract saved the US taxpayers $53.7 million, the New York Times reports.

However, the contract was worth only $144,000, was completed in 2005 and has not been active for two decades, the paper says.

Graig Graziosi has the story.

Rhian Lubin and Alicja Hagopian looked at where people are being detained in ICE facilities across the U.S.

The wild theory was quickly picked up by conservatives and MAGA media personalities, who wondered whether CNN “was tipped off” that a shooting would take place and that the network should be subjected to an investigation.

A spokesperson for the Chinese ministry of commerce accused the US of disregarding facts and international trade rules, calling it a typical example of “unilateralism and bullying”.

Read more on China’s response this morning here:

Attorney General Pam Bondi has again proclaimed that America will get “the full” Jeffrey Epstein files after the highly-anticipated “first phase” contained no major new allegations about the convicted sex offender nor his associates.

James Liddell has the story.