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Donald Trump says he will impose 25% tariffs on all steel and aluminium imports into the US, including from Canada and Mexico.

The president said he would make the announcement on Monday, signalling yet another major escalation in his trade policy overhaul.

Speaking on Air Force One as he flew from Florida to New Orleans for the Super Bowl, he said the new levies would be on top of existing metals duties.

“Any steel coming into the United States is going to have a 25% tariff,” Mr Trump told reporters on Sunday.

When asked about aluminium, he responded, “aluminium, too” will be subject to the trade penalties.

Share prices in steelmakers in Asia were mostly down on Monday, apart from those with operations in the US.

What does Trump’s steel tariff mean for the UK?

At the moment UK exporters of steel and aluminium, are able to export tariff-free to the US up to specified volumes.

For steel, up to 500,000 metric tonnes can be exported to the US per year duty-free.

For aluminium, up to 21,600 metric tonnes can be exported to the US per year duty-free.

In 2023, the UK exported 160,000 metric tonnes of steel to the US, according to UK Steel.

Trump has imposed steel tariffs before. In 2018, during his first term, he introduced tariffs of 25% and 10% respectively on certain imports of steel and aluminium to the US.

However, these were replaced with a tariff rate quota (TRQ) for the UK in 2022, allowing for duty free export.

It’s not clear yet if President Trump will allow for any exemptions but his language on Air Force One last night suggested not.

Mr Trump also said he will announce reciprocal tariffs on Tuesday or Wednesday, to take effect almost immediately, applying them to all countries and matching the tariff rates levied by each nation.

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“And very simply, it’s, if they charge us, we charge them,” Mr Trump said of the reciprocal tariff plan.

Australia seeks tariff exemption

Meanwhile, Canberra is pressing Washington for an exemption to the planned tariffs, with Australia’s trade minister Don Farrell saying its steel and aluminium to the US create “thousands of good-paying American jobs” and are key to shared defence interests.

Mr Farrell said his country was making the case for “free and fair trade, including access into the US market for Australian steel and aluminium” during meetings with the Trump administration.

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Mr Trump previously threatened 25% import taxes on all goods from Canada and Mexico, though he paused them for 30 days last week. At the same time, he proceeded to add 10% duties on imports from China.

Also last week, Mr Trump said tariffs on the European Union would be implemented “pretty soon”. When questioned about the UK, the president said Britain was “out of line” when it came to trade but he thought the situation could be “worked out” without the use of tariffs.

His latest comments on the presidential plane came just after German Chancellor Olaf Scholz said the EU was ready to respond “within an hour” if the US levied tariffs on European goods, highlighting the risks of an escalating trade war.

China’s retaliatory tariffs on some US exports are due to take effect on Monday, with no sign yet of progress between Beijing and Washington.

Donald Trump signed a Proclamation declaring 9 February 2025 as the 'Gulf of America Day'. Pic: Reuters
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Mr Trump signed a proclamation declaring 9 February 2025 as the ‘Gulf of America Day’. Pic: Reuters

‘Gulf of America Day’

Also on board Air Force One, Mr Trump signed a proclamation declaring 9 February 2025 as the first-ever “Gulf of America Day”.

One of the first executive orders the president signed was renaming the Gulf of Mexico.

While signing the latest proclamation, he posed in front of a map with the newly changed name.

Trump reiterates desire to make Canada 51st state

In a separate interview earlier on Fox News, Mr Trump repeated calls to make Canada “the 51st state” as he reiterated his support for tech billionaire Elon Musk.

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Trump reiterates call for Canada to be the 51st state

When asked if he was serious about Canada being a 51st state, Mr Trump said: “I think Canada would be much better off.

“We lose $200bn a year with Canada. And I’m not going to let that happen. It’s too much.

“Why are we paying $200bn a year essentially in subsidy to Canada? Now, if they are a 51st state, I don’t mind doing it.”

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Trump signs ‘Gulf of America Day’ order

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Donald Trump walks with Elon Musk before attending a viewing of the launch of the sixth test flight of the SpaceX Starship rocket, in Brownsville, Texas, U.S., November 19, 2024 . Brandon Bell/Pool via REUTERS TPX IMAGES OF THE DAY
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Mr Trump has said he trusts the work Elon Musk is doing in improving government efficiency

He also continued to voice support for Mr Musk. The X owner is spearheading the US president’s efforts to cut costs and bureaucracy in government, which has already seen the US Aid Agency for International Development targeted.

Named the Department of Government Efficiency (DOGE), its aim is to find ways to sack federal workers, cut programmes and cut federal regulations.

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Chair candidates battle to check in at Premier Inn-owner Whitbread

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Chair candidates battle to check in at Premier Inn-owner Whitbread

Two chairs of FTSE-100 companies are vying to succeed Adam Crozier at the top of Whitbread, the London-listed group behind the Premier Inn hotel chain.

Sky News has learnt that Christine Hodgson, who chairs water company Severn Trent, and Andrew Martin, chair of the testing and inspection group Intertek, are the leading contenders for the Whitbread job.

Mr Crozier, who has chaired the leisure group since 2018, is expected to step down later this year.

The search, which has been taking place for several months, is expected to conclude in the coming weeks, according to one City source.

Ms Hodgson has some experience of the leisure industry, having served on the board of Ladbrokes Coral Group until 2017, while Mr Martin was a senior executive at the contract caterer Compass Group and finance chief at the travel agent First Choice Holidays.

Under Mr Crozier’s stewardship, Whitbread has been radically reshaped, selling its Costa Coffee subsidiary to The Coca-Cola Company in 2019 for nearly £4bn.

The company has also seen off an activist campaign spearheaded by Elliott Advisers, while Mr Crozier orchestrated the appointment of Dominic Paul, its chief executive, following Alison Brittain’s retirement.

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It said last year that it sees potential to grow the network from 86,000 UK bedrooms to 125,000 over the next decade or so.

Mr Crozier is one of Britain’s most seasoned boardroom figures, and now chairs BT Group and Kantar, the market research and data business backed by Bain Capital and WPP Group.

He previously ran the Football Association, ITV and – in between – Royal Mail Group.

On Friday, shares in Whitbread closed at £25.41, giving the company a market capitalisation of about £4.5bn.

Whitbread declined to comment this weekend.

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Bank chiefs to Reeves: Ditch ring-fencing to boost UK economy

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Bank chiefs to Reeves: Ditch ring-fencing to boost UK economy

The bosses of four of Britain’s biggest banks are secretly urging the chancellor to ditch the most significant regulatory change imposed after the 2008 financial crisis, warning her its continued imposition is inhibiting UK economic growth.

Sky News has obtained an explosive letter sent this week by the chief executives of HSBC Holdings, Lloyds Banking Group, NatWest Group and Santander UK in which they argue that bank ring-fencing “is not only a drag on banks’ ability to support business and the economy, but is now redundant”.

The CEOs’ letter represents an unprecedented intervention by most of the UK’s major lenders to abolish a reform which cost them billions of pounds to implement and which was designed to make the banking system safer by separating groups’ high street retail operations from their riskier wholesale and investment banking activities.

Their request to Rachel Reeves, the chancellor, to abandon ring-fencing 15 years after it was conceived will be seen as a direct challenge to the government to take drastic action to support the economy during a period when it is forcing economic regulators to scrap red tape.

It will, however, ignite controversy among those who believe that ditching the UK’s most radical post-crisis reform risks exacerbating the consequences of any future banking industry meltdown.

In their letter to the chancellor, the quartet of bank chiefs told Ms Reeves that: “With global economic headwinds, it is crucial that, in support of its Industrial Strategy, the government’s Financial Services Growth and Competitiveness Strategy removes unnecessary constraints on the ability of UK banks to support businesses across the economy and sends the clearest possible signal to investors in the UK of your commitment to reform.

“While we welcomed the recent technical adjustments to the ring-fencing regime, we believe it is now imperative to go further.

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“Removing the ring-fencing regime is, we believe, among the most significant steps the government could take to ensure the prudential framework maximises the banking sector’s ability to support UK businesses and promote economic growth.”

Work on the letter is said to have been led by HSBC, whose new chief executive, Georges Elhedery, is among the signatories.

His counterparts at Lloyds, Charlie Nunn; NatWest’s Paul Thwaite; and Mike Regnier, who runs Santander UK, also signed it.

While Mr Thwaite in particular has been public in questioning the continued need for ring-fencing, the letter – sent on Tuesday – is the first time that such a collective argument has been put so forcefully.

The only notable absentee from the signatories is CS Venkatakrishnan, the Barclays chief executive, although he has publicly said in the past that ring-fencing is not a major financial headache for his bank.

Other industry executives have expressed scepticism about that stance given that ring-fencing’s origination was largely viewed as being an attempt to solve the conundrum posed by Barclays’ vast investment banking operations.

The introduction of ring-fencing forced UK-based lenders with a deposit base of at least £25bn to segregate their retail and investment banking arms, supposedly making them easier to manage in the event that one part of the business faced insolvency.

Banks spent billions of pounds designing and setting up their ring-fenced entities, with separate boards of directors appointed to each division.

More recently, the Treasury has moved to increase the deposit threshold from £25bn to £35bn, amid pressure from a number of faster-growing banks.

Sam Woods, the current chief executive of the main banking regulator, the Prudential Regulation Authority, was involved in formulating proposals published by the Sir John Vickers-led Independent Commission on Banking in 2011.

Legislation to establish ring-fencing was passed in the Financial Services Reform (Banking) Act 2013, and the regime came into effect in 2019.

In addition to ring-fencing, banks were forced to substantially increase the amount and quality of capital they held as a risk buffer, while they were also instructed to create so-called ‘living wills’ in the event that they ran into financial trouble.

The chancellor has repeatedly spoken of the need to regulate for growth rather than risk – a phrase the four banks hope will now persuade her to abandon ring-fencing.

Britain is the only major economy to have adopted such an approach to regulating its banking industry – a fact which the four bank chiefs say is now undermining UK competitiveness.

“Ring-fencing imposes significant and often overlooked costs on businesses, including SMEs, by exposing them to banking constraints not experienced by their international competitors, making it harder for them to scale and compete,” the letter said.

“Lending decisions and pricing are distorted as the considerable liquidity trapped inside the ring-fence can only be used for limited purposes.

“Corporate customers whose financial needs become more complex as they grow larger, more sophisticated, or engage in international trade, are adversely affected given the limits on services ring-fenced banks can provide.

“Removing ring-fencing would eliminate these cliff-edge effects and allow firms to obtain the full suite of products and services from a single bank, reducing administrative costs”.

In recent months, doubts have resurfaced about the commitment of Spanish banking giant Santander to its UK operations amid complaints about the costs of regulation and supervision.

The UK’s fifth-largest high street lender held tentative conversations about a sale to either Barclays or NatWest, although they did not progress to a formal stage.

HSBC, meanwhile, is particularly restless about the impact of ring-fencing on its business, given its sprawling international footprint.

“There has been a material decline in UK wholesale banking since ring-fencing was introduced, to the detriment of British businesses and the perception of the UK as an internationally orientated economy with a global financial centre,” the letter said.

“The regime causes capital inefficiencies and traps liquidity, preventing it from being deployed efficiently across Group entities.”

The four bosses called on Ms Reeves to use this summer’s Mansion House dinner – the City’s annual set-piece event – to deliver “a clear statement of intent…to abolish ring-fencing during this Parliament”.

Doing so, they argued, would “demonstrate the government’s determination to do what it takes to promote growth and send the strongest possible signal to investors of your commitment to the City and to strengthen the UK’s position as a leading international financial centre”.

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Post Office to unveil £1.75bn banking deal with big British lenders

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Post Office to unveil £1.75bn banking deal with big British lenders

The Post Office will next week unveil a £1.75bn deal with dozens of banks which will allow their customers to continue using Britain’s biggest retail network.

Sky News has learnt the next Post Office banking framework will be launched next Wednesday, with an agreement that will deliver an additional £500m to the government-owned company.

Banking industry sources said on Friday the deal would be worth roughly £350m annually to the Post Office – an uplift from the existing £250m-a-year deal, which expires at the end of the year.

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The sources added that in return for the additional payments, the Post Office would make a range of commitments to improving the service it provides to banks’ customers who use its branches.

Banks which participate in the arrangements include Barclays, HSBC, Lloyds Banking Group, NatWest Group and Santander UK.

Under the Banking Framework Agreement, the 30 banks and mutuals’ customers can access the Post Office’s 11,500 branches for a range of services, including depositing and withdrawing cash.

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The service is particularly valuable to those who still rely on physical cash after a decade in which well over 6,000 bank branches have been closed across Britain.

In 2023, more than £10bn worth of cash was withdrawn over the counter and £29bn in cash was deposited over the counter, the Post Office said last year.

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A new, longer-term deal with the banks comes at a critical time for the Post Office, which is trying to secure government funding to bolster the pay of thousands of sub-postmasters.

Reliant on an annual government subsidy, the reputation of the network’s previous management team was left in tatters by the Horizon IT scandal and the wrongful conviction of hundreds of sub-postmasters.

A Post Office spokesperson declined to comment ahead of next week’s announcement.

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