What are Donald Trump’s tariffs – and how will they affect the UK?
Donald Trump’s steel and aluminium tariffs have come into effect.
But what are they and what do they mean for the UK?
What are tariffs and why does Trump want to impose them?
Tariffs are taxes on goods imported into the US.
The US president wants to impose wide-ranging tariffs on nearest neighbours Mexico and Canada, which he says will help reduce illegal migration and the smuggling of the synthetic opioid fentanyl to the US.
However, most of the 25% duties imposed on the pair to date have been suspended until 2 April.
But two rounds of tariffs on China have been enacted – reflecting trade imbalances and Mr Trump’s battle against fentanyl.
So why is he now targeting steel and aluminium?
On Wednesday, a separate 25% tariff on all steel and aluminium imports to the US came into effect, affecting UK products worth hundreds of millions of pounds.
The steel and aluminium tariffs are designed to protect US manufacturing and bolster jobs by making foreign-made products less attractive.
The world’s largest economy relies on imports of steel and aluminium and Mr Trump wants to change that.
How have countries – including the UK – reacted?
The European Union has announced it will impose retaliatory tariffs on the US.
The European Commission said it will impose “countermeasures” affecting €26bn (£21.9bn) of US goods from 1 April after US tariffs on steel and aluminium came into force today.
The bloc’s tariffs will not only impact US steel and aluminium products, but also textiles, home appliances and agricultural goods.
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Canada has announced 25% retaliatory tariffs on US goods worth C$29.8bn (£16bn) from tomorrow, its country’s finance minister has said.
The tariffs will include steel products worth C$12.6bn (£6.8bn) and aluminium products worth C$3bn (£1.6bn).
Computers, sports equipment and cast iron goods are also among the other products subject to the new retaliatory tariffs.
Announcing the tariffs, Canada’s foreign minister, Melanie Joly, added that Canada will raise the issues of tariffs with European allies to coordinate a response to put pressure on the US.
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Trump’s tariffs are ‘disappointing’
While UK industry sees it as a direct attack, the reality is that this country is not a major player any more because energy costs, in particular, mean that UK-produced steel is expensive.
Nevertheless, stainless steel and some high-end products from the UK are in high demand and account for the bulk of the £350m in annual exports to the US.
Sir Keir Starmer has said he is “disappointed” to see Mr Trump impose global tariffs on steel and aluminium, saying the UK will take a “pragmatic approach” and “all options are on the table”.
The business secretary Jonathan Reynolds said on Wednesday morning that while he was disappointed, there would be no immediate retaliation by the UK government as negotiations continue over a wider trade deal with the US.
Why will metal products become more expensive?
It stands to reason that if you slap additional costs on importers in the US, that cost will be passed on down the supply chain to the end user.
If the aluminium to make soft drinks cans costs 25% more, for example, then the hit will have to be felt somewhere.
It could mean that any US product involving steel or aluminium goes up in price, but hikes could be limited if companies decide to take some of the burden in their bottom lines.
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What are the prospects for higher prices?
It depends on the extent to which costs are passed down through the supply chain as new tariff regimes and any reciprocal tariffs are deployed.
We do know that Mr Trump plans to fully roll out duties, on all goods, against Mexico and Canada from 2 April. But the White House did row back on a threat to double Canada’s tariff on its steel and aluminium – the biggest exporter – to 50%.
But Mr Trump is also widely expected to target almost all imports from the European Union from the beginning of April.
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Is the UK facing further tariffs?
Mr Trump has not explicitly said that the UK is in his sights.
Data shows no great trade imbalances – the gap between what you import and export from a certain country – and UK figures show no trade deficit with the United States.
UK ministers have previously suggested this could be good news for avoiding new levies.
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‘The ultimate cost of tariffs will be paid in the US’
Why tariffs could cost you – even if Trump spares UK
Even if no tariffs are put on all UK exports to the US, consumers globally will still be impacted by the wider trade war, particularly in the US.
Economists believe that tariffs will raise costs in the US, sparking a wave of inflation that will keep interest rates higher for longer. The US central bank, the Federal Reserve, is mandated to act to bring inflation down.
More expensive borrowing and costlier goods and services could bring about an economic downturn in the US and have knock-on effects in the UK.
Forecasts from the National Institute of Economic and Social Research (NIESR) predict lower UK economic growth due to higher global interest rates.
It has estimated that UK GDP (a measure of everything produced in the economy) could be between 2.5% and 3% lower over five years and 0.7% lower this year.
The Centre for Inclusive Trade Policy thinktank said a 20% across-the-board tariff, impacting the UK, could lead to a £22bn reduction in the UK’s US exports, with the hardest-hit sectors including fishing and mining.
Jeffrey Epstein led two different lives – sex offender and celebrity networker – and he did that in the UK as well as the US.
The newly released Epstein documents reveal, in particular, how the paedophile financier ascended into the highest levels of British society.
This photo of Andrew Mountbatten-Windsor sprawled across the lap of several women, whose identities have been protected, speaks to his close relationship with Epstein’s former girlfriend Ghislaine Maxwell, who was jailed for child sex trafficking and other offences in connection with Epstein. But the furnishings are even more revealing.
Epstein files – latest updates
Andrew Mountbatten Windsor pictured with Ghislaine Maxwell. Note: inclusion in Epstein files does not infer wrongdoing
Sky News matched the fireplace in this photo with the one in Sandringham, the estate where the royals tend to spend Christmas – (Andrew is not invited this year).
Andrew has vigorously denied any accusations against him.
Prince Charles, now King Charles III, at Sandringham with Prince Edward. Pic: PA
Also included in the latest release are Epstein’s flight records. They provide some useful corroborating evidence.
A flight log from the Epstein files
On 9 March 2001, his plane landed at “EGGW” – Luton Airport – with JE, GM and VR on board – Jeffrey Epstein, Ghislaine Maxwell and Virginia Roberts, better known by her married name of Virginia Giuffre and perhaps Epstein’s most famous accuser.
The next day is when this photo was alleged to have been taken, in London, of Giuffre and Andrew.
Prince Andrew, Virginia Roberts, aged 17, and Ghislaine Maxwell at Ghislaine Maxwell’s townhouse in London, in March 2001
Jeffrey Epstein and Ghislaine Maxwell hunting, date unknown. Pic: US DoJ
Other photos show Maxwell on the steps of Downing Street – and power was as much a draw as celebrity.
Ghislaine Maxwell outside 10 Downing Street, date unknown. Pic: US DoJ
On 15 May 2002, the flight records show Epstein again arriving at Luton.
A flight log from the Epstein files
The next day is when he met Tony Blair, prime minister at the time. This was before Epstein’s first arrest and there is no suggestion of wrongdoing.
Read more:
New photos of Jeffrey Epstein’s circle released
Ghislaine Maxwell sex trafficking case material to be released
The meeting was arranged by Peter Mandelson, who lost his job as ambassador to the US because of his Epstein connections, and who features prominently in the files.
Peter Mandelson and Jeffrey Epstein. Pic: US DoJ
The UK was a draw for Epstein’s wider circle too – Maxwell here is pictured touring the Churchill War Rooms with Bill Clinton and Kevin Spacey. Neither are accused of wrongdoing or knowledge of Epstein’s crimes.
(L-R) Ghislaine Maxwell, Kevin Spacey and Bill Clinton, with three other men. Pic: US DoJ
And the other grim life that Epstein led, of sex trafficking, also had British links.
A page from the Epstein files
Another document released in the files, from 2019, shows witness testimony from Maxwell’s trial. In it, a victim is mentioned who is “17 years old” and who grew up “in England”. She would later be taken to Epstein’s private Caribbean island.
Police have announced a £20,000 reward in the hunt for the killers of a man in north London in March.
Mahad Abdi Mohamed, 27, died after being shot in the head in Waverley Road, Tottenham at 8.45pm on 20 March, the Metropolitan Police said.
The Met, which announced the reward from the independent charity Crimestoppers, said officers believed the shooting was a case of mistaken identity.
Police now want to speak to two people in connection with the incident.
DCI Rebecca Woodsford, who is leading the investigation, said: “There is someone out there who knows what happened that night, and we are urging those individuals to find it in their heart to come forward. It could be exactly what we need to locate those responsible.”
Images of the two people police would like to speak to. Pics: Metropolitan Police
A targeted attack
Police believe the suspects, who got out of a stolen Mitsubishi Outlander, which was later recovered burned out, were taking part in a targeted attack.
On the night of the murder, Mahad had spent the early evening with his friend at their home.
They were breaking their fast outside when the Mitsubishi Outlander approached and the suspects opened fire, striking Mahad and his friend multiple times.
Mahad’s 26-year-old friend received treatment for a gunshot wound to his leg.
The force suspects another stolen vehicle, a blue Jaguar, was used to transport the suspects to and from the Mitsubishi.
Read more from Sky News:
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The stolen cars from the night. Pics: Metropolitan Police
Police arrested four adult men in March and April on suspicion of murder, who were subsequently bailed.
The investigation so far has led officers to believe whoever killed Mahad set out to hurt someone else in a pre-planned, targeted attack.
Appealing to the public for information, Mahad’s youngest sister said: “To stay silent is to be complicit. To stay silent is to let a grieving mother suffer in confusion. To stay silent is to let a little boy grow up not knowing what happened to his father.”
Pic: Metropolitan Police
The reward, which is offered for information that leads to the identification, arrest and prosecution of those responsible, is available for three months and is due to expire on 20 March 2026.
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