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Markets shaken by Trump post – as Luton closure set to have major consequences | What you need to know this week
By Jimmy Rice, Money blog editor
A single post from Donald Trump shook markets this week.
The president-elect used his Truth Social account to declare that he would introduce a 25% tax on all products entering the US from Canada and Mexico. He also threatened additional tariffs on goods from China.
A relatively narrow focus, and it may well be part of a strategy of brinkmanship, but it stoked fears of a global trade war – and the Bank of England to sound the alarm earlier today (see post at 10.55am).
Earlier this month business and economics reporter Sarah Taaffe-Maguire wrote this explainer on what this might look like for the UK and the global economy…
Arguably the most consequential economic story of the week came from Luton, where 1,100 workers will lose their jobs with the closure of Vauxhall’s van plant there.
Stellantis, the brand’s owner, was crystal clear about the trigger for this move. The decision was made, it said, “within the context of the UK’s ZEV Mandate”, a reference to targets to produce a proportion of zero-emission vehicles each year or face stiff penalties.
The rule for 2024 requires manufacturers to ensure at least 22% of new cars sold are zero emission, rising to 80% by 2030 and 100% by 2035.
Carmakers face a fine of £15,000 for each non zero-emission vehicle sold that exceeds the annual percentage target – though there are a few areas for manoeuvre, such as the opportunity to buy credits from competitors who’ll never struggle to comply, such as Tesla.
The government confirmed this week it was fast-tracking a consultation on the targets, with speculation they could be softened.
Business and economics correspondent Paul Kelso wrote this…
Live news reporter Ollie Cooper has taken a residency here in Money this week with his engaging series on fitness supplements.
Ollie reveals how, at one stage, he was taking 14 supplements a day before waking up to the fact he was the victim of incredible marketing by a multibillion-pound industry.
He’s been speaking to doctors, fitness experts and nutritionists to examine 12 common supplements through this week and into next to answer whether they help you get ripped, or whether you’re getting ripped off.
Read about Ollie’s personal experience here and what a doctor has said about it…
And you can read the latest in the series here (you’ll find links to previous ones in this post too)…
Here in Money we put a lot of focus on Black Friday…
…asked whether a landlord can backdate rent increases…
…and took a look at the areas across the UK where salaries are rising more than house prices, making homes more affordable…
We’ll be back with live updates on Monday morning – and don’t forget our Saturday long read, this week on the age-old question of how much you should spend on an engagement ring, which will be published from 8am tomorrow.