Rolling coverage of the latest economic and financial news

• Rachel Reeves accused of balancing books on back of UK’s poorest
• Donald Trump announces new 25% tariffs on cars from overseas

European stock markets are sea of red in early trading, dragged down by the auto sector.

Germany’s DAX index has dropped by 1.6%, with Mercedes-Benz (now -5.5%) and Porsche (-4.8%) leading the fallers.

Tariff concerns returned to the market with Trump imposing 25% tariffs on Auto imports and suggesting reciprocal tariffs to come.

Comments from trading partners overnight suggest potential counter tariffs will be likely. Tech stocks were under pressure on reports that China would use energy efficiency rules to limit use of high-end imported chips.