Growth defied forecasts that chancellor had hobbled economy, but trade war casts long shadow

• UK economy far exceeds forecasts to grow 0.5%
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Earlier this year Rachel Reeves was being written off for having jeopardised Britain’s economy. The chancellor’s tax-raising autumn budget had sapped business investment, spooked the financial markets and put the jobs market at risk.

The latest official figures showing stronger-than-expected economic growth of 0.5% in February will therefore come as a boost for the embattled chancellor, in a sign that the economy was in better health than her critics claimed.

US president may have used some hypothetical maths but chances are slim that such sums are being raised

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Donald Trump has defended his tariffs by arguing that they are already raking in almost $2bn (£1.6bn) a day for the US.

Speaking after more than $5tn of losses on the US stock market since his “liberation day” announcement last week, he made the claim on Tuesday, adding: “America is going to be very rich again, very soon.”