What are Donald Trump’s tariffs – and how will they affect the UK?

Published

8 months ago

March 12, 2025

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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.

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.

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.

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.

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.

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.

US

‘He must have got this from K’: What mistaken tweet tells us about ‘secret’ plan to end Ukraine war

Published

1 day ago

November 20, 2025

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'He must have got this from K': What mistaken tweet tells us about 'secret' plan to end Ukraine war

There are developments in the quest for peace in Ukraine.

It’s been one of those days when different snippets of news have come together to create a picture of sorts. The jigsaw remains complicated, but the suggestion is neither the Ukrainians nor the Europeans have been privy to the developments.

As it happened: Russia responds to spy ship claim

The most intriguing development came at lunchtime on Thursday.

“He must have got this from K…” wrote Donald Trump‘s special envoy Steve Witkoff on X. He clearly thought he was sending a private message.

He was replying to a scoop of a story by Axios’s Barak Ravid.

The story revealed a “secret” plan to end the Ukraine war. The report suggested the Americans had been talking secretly to the Russians about a renewed effort to bring the war to an end, which involved Ukraine ceding land it still controls to Russia.

Who is “K” in Witkoff’s message? It’s probably Kirill Dmitriev, who has become Putin’s unofficial and unlikely envoy to Washington. Kyiv-born and Stanford-educated Dmitriev is, essentially, Witkoff’s Russian opposite number.

In a sense, they are the yin and yang of this geopolitical puzzle. Witkoff is a real estate mogul. Dmitriev is an economist. They are opposing forces with backgrounds that are, on the face of it, equally unsuited to geopolitical conflict resolution. Yet their two leaders are trusting them with this huge task.

‘Territorial concessions’ in 28-point plan

So, back to the developments to have emerged over the last 24 hours.

First, we know senior US Department of War officials, including Army Secretary Dan Driscoll, have arrived in the Ukrainian capital to meet their counterparts there.

Their visit was scheduled but the focus shifted. The plan to discuss drone technology and the winter offensive morphed into a discussion about a Russian-presented peace plan Witkoff and Dmitriev had been discussing.

This is the second development. The Axios report – which Witkoff seems inadvertently to have suggested came from Dmitriev – claims the two envoys met recently in Florida (Witkoff’s base) to discuss a 28-point plan for peace.

A defence official told our partners at NBC News that Driscoll has been briefed on the 28-point plan. Driscoll and his military staff are thought to have been presenting an initial brief to the Ukrainian side of this Russian-sponsored plan.

Ukrainian sources have suggested to me in clear terms they are not happy with this Witkoff-Dmitriev plan. Sources tell me it includes “territorial concessions” and “reductions in military strength”. The Ukrainian position is the plan represents the latest attempt to “play the American government”.

What’s happening with security guarantees?

Ukraine wants security guarantees from the US. Trump signalled during Zelenskyy’s last visit to Washington that he was willing to provide those. This was framed by the Europeans as a huge positive development, even though the White House did not spell out the crucial detail – what would these guarantees actually entail?

The latest reporting, from Axios, suggests the security guarantees (still undefined, publicly at least) are dependent on Ukraine giving up the whole of the Donbas region – this would include about 15% of territory Russia does not currently hold.

Crucially, the areas of the Donbas from which Ukraine would withdraw (the 15%) would be considered a demilitarised zone. The plan is very similar to one floated by Vice President JD Vance in the months before Trump won last year’s election, which was roundly rejected as a non-starter at the time.

Is Gaza plan the model?

Another source, from a third country close to the negotiations, has told me the Qataris are playing a role in the talks and were present at the weekend when Steve Witkoff met Ukraine’s national security advisor Rustem Umerov last weekend.

Qatari and Turkish mediation, along with the multipoint peace plan for Gaza, is being projected as a model transferable to Ukraine despite the conflict, challenges, and root causes being wholly different.

Other European sources told me this morning they were not aware of this Russian-American plan. It’s worth remembering it’s in the interests of the Russians to be seen to be engaged in peace proposals in order to avoid secondary sanctions from the US.

Zelenskyy has been in Turkey over the past 24 hours, where he singled out Trump’s efforts to find peace.

“Since the beginning of this year, we in Ukraine have supported every decisive step and the leadership of @POTUS, every strong and fair proposal aimed at ending this war.” Zelenskyy wrote. “And only President Trump and the United States have sufficient power to make this war come to an end.”

This is the vital language of flattery.

US

Deadline day for Andrew to respond to Epstein inquiry – but it’s hard to imagine why he’d talk

Published

1 day ago

November 20, 2025

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Deadline day for Andrew to respond to Epstein inquiry - but it's hard to imagine why he'd talk

They’ve said they are offering him an opportunity to tell them everything, once and for all.

But as we hit the two-week deadline set by the US Congress committee investigating Jeffrey Epstein for a reply from Andrew Mountbatten-Windsor, will he agree to their request to open up about the paedophile financier?

The letter sent by the House Committee on Oversight and Government Reform said members wanted to talk to him because of the widely reported allegations that have been made against him, which he denies, and because of his relationship with Epstein and what he may have seen.

The committee is looking into Epstein’s crimes and his wider sex trafficking network. Andrew was given until today, 20 November, to respond.

Legally he isn’t obliged to talk to them, and to be honest it’s hard to imagine why he would.

The only time he has spoken at length about the allegations against him and his relationship with Epstein was that Newsnight interview in 2019, and we all know how much of a disaster that was.

Yes, this could be an opportunity for him to publicly apologise for keeping up his links with Epstein, which he has never done before, or show some sympathy towards Epstein’s victims, even as he vehemently denies the allegations against him.

But while there is the moral argument that he should tell the committee everything he knows, it could also raise more uncomfortable questions for him, and that could feel like too much of a risk for Andrew and the wider Royal Family.

However, even saying no won’t draw all this to a close. There are other outstanding loose ends.

The Metropolitan Police still have to tell us if they intend to take any further action after they said they were looking into claims Andrew had asked one of his officers to dig up dirt on his accuser, Virginia Giuffre.

There could also still be a debate in parliament about the Andrew problem.

The Liberal Democrats have said they want to use their opposition debating time to bring the issue to the floor of the House of Commons, while other MPs on the Public Accounts Committee have signalled their intention to look into Andrew’s finances and housing arrangements.

And then there are the wider Epstein files over in America, and what information they may hold.

From developments this week, it seems we are edging ever closer to seeing those released.

All of this may mean Andrew in other ways is forced to say more than he wants to, even without opening up to the Congress committee.

US

Trump signs bill approving release of Epstein files

Published

1 day ago

November 20, 2025

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Trump signs bill approving release of Epstein files

Donald Trump has signed a bill approving the release of files relating to Jeffrey Epstein by the US Justice Department.

“I HAVE JUST SIGNED THE BILL TO RELEASE THE EPSTEIN FILES!” he said in a Truth Social post, following a lengthy preamble aimed at discrediting the Democrats.

“Democrats have used the ‘Epstein’ issue, which affects them far more than the Republican Party, in order to try and distract from our AMAZING Victories,” he continued.

It comes after the Senate finished the formalities and sent the proposed legislation to the president’s desk, having comfortably cleared a vote in the House of Representatives on Tuesday.

The Justice Department now has 30 days to release the documents it holds on the paedophile financier.

WHAT DOES THE BILL SAY MUST BE RELEASED?

All files relating to Epstein, including investigations, prosecutions, or custodial matters;
All files relating to Ghislaine Maxwell;
Flight logs or travel records for any aircraft, vessel, or vehicle owned, operated, or used by Epstein or any related entity;
Individuals named or referenced in connection with Epstein’s criminal activities, civil settlements, immunity or plea agreements, or investigations;
Entities with known or alleged ties to Epstein’s trafficking or financial networks;
Any immunity deals, non-prosecution agreements, plea bargains, or sealed settlements involving Epstein or his associates;
Internal DOJ communications concerning decisions to charge, not charge, investigate, or decline to investigate Epstein or his associates;
All communications concerning the destruction, deletion, alteration, misplacement, or concealment of files related to Epstein;
Documentation of Epstein’s detention or death, including witness interviews and autopsy reports.

How did we get here?

Mr Trump promised during last year’s election campaign to release the Epstein files in full, but has since spent months decrying them as a Democratic “hoax”.

His links to the Epstein have long been subject to scrutiny. Mr Trump has always denied any wrongdoing.

His change of heart on releasing the files came as a surprise over the weekend, as he called on Republicans in Congress to vote for the so-called Epstein Files Bill and indicated he’d sign it.

“Because of this request, the votes were almost unanimous in favor [sic] of passage,” Mr Trump wrote in his late-night post announcing the signing of the bill.

The House of Representatives was indeed near unanimous in voting for the material to be released, with 427 in favour and one against.

Hot on the heels of that vote, which was met with cheers in the chamber, the Senate said it too would pass the bill.

Trump tries to tie Democrats to Epstein

Mr Trump’s post repeatedly labels Epstein as a Democrat, citing his past associations with the likes of Bill Clinton.

Mr Trump has said he wants the Justice Department to investigate Epstein’s links to Mr Clinton, former treasury secretary Larry Summers, and Reid Hoffman, the LinkedIn founder, who is also a prominent Democratic donor.

All three men were mentioned in the 20,000 other Epstein-related documents released by Congress’s House Oversight Committee last week. None of them, however, have been accused of wrongdoing in the case.

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Emails, photos and other documents released by Congress in recent weeks have included references to Mr Trump, the UK’s since sacked US ambassador Lord Mandelson, and former British prince Andrew Mountbatten-Windsor, who has faced calls from members of the committee to give evidence.

Like Mr Trump, both Britons have denied any wrongdoing and expressed regret about their relationship with Epstein.

The deadline for Mr Mountbatten-Windsor to respond to an official request from the committee is today.

Unrest in MAGA world

The issue has proved to be a major source of division within Mr Trump’s Make America Great Again movement.

Marjorie Taylor Greene, a long-time Trump backer who publicly fell out with the president just days ago, stood with Epstein survivors on the steps of the Capitol ahead of Tuesday’s Congress votes.

She said: “These women have fought the most horrific fight that no woman should have to fight. And they did it by banding together and never giving up.”

Read more: Who is Marjorie Taylor Greene?