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- 📈 Trade War Cranks to 104% Madness
📈 Trade War Cranks to 104% Madness
Outlier Grove Backs Europe’s Boldest Brains
This is Cliff Equity, the UK’s business newsletter that keeps you informed on what’s important in tech, business and finance in less than 5 minutes
In today’s stories:
Trade War Cranks to 104% Madness
Outlier Grove Backs Europe’s Boldest Brains
Starmer Slams OBR Over Budget Assumptions
The summary: Trump’s cranking up tariffs like a DJ at a trade war rave—sending markets wobbling, China fuming, and the global economy in for one hell of a remix.
The details:
Trump’s Tariff Tango: The former president is slapping a jaw-dropping 104% tariff on all Chinese imports—because nothing says “diplomacy” quite like doubling down when your opponent won’t blink. That’s on top of the 34% hike already planned, with a cheeky extra 50% thrown in after China refused to back down.
China’s Not Amused: Beijing, unsurprisingly, called the move “a mistake upon a mistake” and is now sharpening its own tariff sword. A full-on trade spat is brewing, complete with threats, counter-threats, and no adult supervision in sight.
Markets Catch a Cold: Wall Street had a jolly morning, but Leavitt’s announcement quickly wiped the grin off investors’ faces. By tea time, the Dow, Nasdaq and S&P had all sulked into the red.
Global Tariff Bonanza: It’s not just China getting the cold shoulder—over 40 other countries (plus the EU) are staring down tariffs of up to 50%. Still, Trump says he’s open to "tailor-made" trade deals… just not the off-the-rack kind, darling.
Why it matters: Trump’s tariff hike is like trying to fix a leaky tap with a sledgehammer—it risks making everyday goods pricier for Americans while dragging the global economy into a game of tit-for-tat. China’s not exactly thrilled, and neither are markets, which took one look and promptly keeled over. With dozens of other countries now in the firing line, it’s less “art of the deal” and more “bull in a china shop—charging VAT.”
The summary: Candice du Fretay’s Outlier Grove is giving Europe’s sharpest B2B founders a golden ticket to go global from day one—with cash, clout, and a cracking US network in tow.
The details:
From Accel to solo act: Candice du Fretay swaps the cushy corridors of Accel for the wild woods of solo VC life, launching Outlier Grove—a $20M fund with a nose for Europe’s next B2B unicorns (preferably before anyone else clocks them).
Small cheques, big ambitions: She's writing early-stage cheques ($200K–$500K) to European founders with stars in their eyes and one foot already on a plane to the US—because thinking global from day one is no longer optional, darling.
Not your average LP line-up: Backed by C-suite brass from OpenAI, Stripe, Google et al, this isn’t just capital—it’s a cheat code for cracking the US market, with mentorship and intros sprinkled like startup fairy dust.
Brains, borders, and B2B glory: With stints at Lazard, Harvard, and Accel, du Fretay’s CV is basically a startup investor’s bingo card. Now she’s betting Europe’s top tech minds can go global—with the right nudge (and a seriously handy rolodex).
Why it matters: Candice du Fretay’s new fund is a wake-up call for European founders still playing it local—she’s handing out cheques and connections with Silicon Valley’s finest like it’s no big deal. With top-tier US backers and a transatlantic black book thicker than a Dickens novel, she’s turning the old "build here, sell there" model on its head. In short: if you’re a B2B startup with global dreams and no US game plan, you’re already late to the party.
The summary: Keir Starmer’s clash with the OBR over benefit cuts has MPs scrambling, with concerns that tightening disability payments could leave hundreds of thousands in poverty—while political jabs fly faster than a game of snooker.
The details:
Starmer vs. the Spreadsheet Squad: The PM took a swipe at the OBR, claiming their benefit impact maths assumes everyone just sits on their hands. He reckons tightening up disability payments will change behaviour—OBR's reply: “Prove it.”
Cuts and Consequences: MPs aren’t exactly clapping. Critics warned the reforms might shove up to 400,000 people into poverty—hardly the levelling-up vibe Labour was going for.
Benefits in the Balance: The government wants to make claiming disability support tougher and freeze some incapacity benefits, all while hoping (with fingers crossed) that more people return to work.
Political Pantomime: While Starmer defends the changes, the Tories gleefully point out Labour’s own law demands they take the OBR seriously. Cue shouts of “hypocrisy!” and “Reeves' gimmicks!” across the aisle.
Why it matters: Keir Starmer’s spat with the OBR highlights a fundamental difference in how to view government policy—one side thinks the numbers should factor in human behaviour, the other insists nothing ever changes. Meanwhile, his proposed cuts to disability benefits risk backfiring, with MPs and charities warning they could push hundreds of thousands into poverty—hardly a ringing endorsement for Labour’s plan. And with political points flying across the chamber, it’s clear the government's approach to social welfare and economic forecasts is more tangled than a plate of spaghetti.
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