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

Published

2 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

James Comey: Trump says ex-FBI director’s seashells post ‘meant assassination’

Published

5 hours ago

May 17, 2025

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James Comey: Trump says ex-FBI director's seashells post 'meant assassination'

A former FBI director has been interviewed by the US Secret Service over a social media post that Republicans say was a call for violence against President Donald Trump.

James Comey, who led the FBI from 2013 until he was fired in 2017 by Mr Trump during his first term in office, shared a photo of seashells appearing to form the numbers “86 47”.

He captioned the Instagram post: “Cool shell formation on my beach walk.”

Some have interpreted the post as a threat, alleging that 86 47 means to violently remove Mr Trump from office, including by assassination.

What does ’86 47′ mean?

The number 86 can be used as a verb in the US. It commonly means “to throw somebody out of a bar for being drunk or disorderly”.

One recent meaning of the term is “to kill”, according to the Merriam-Webster Dictionary, which said it had not adopted this meaning of 86 “due to its relative recency and sparseness of use”.

The number has previously been used in a political context by Matt Gaetz, who was President Donald Trump’s pick for attorney general but withdrew from consideration following a series of sexual misconduct allegations.

Mr Gaetz wrote: “We’ve now 86’d…” and listed political opponents he had sparred with who ended up stepping down.

Meanwhile, 47 is supposedly representing Mr Trump, who is the 47th US president.

Mr Comey later removed the post, saying he thought the numbers “were a political message” and that he was not aware that the numeric arrangement could be associated with violence.

“I didn’t realise some folks associate those numbers with violence. It never occurred to me, but I oppose violence of any kind, so I took the post down,” Mr Comey said.

Mr Trump rejected the former FBI director’s explanation, telling Fox News: “He knew exactly what that meant. A child knows what that meant… that meant assassination.”

Donald Trump Jr accused Mr Comey of “casually calling for my dad to be murdered”.

US Homeland Security Secretary Kristi Noem confirmed in a post on X that Mr Comey had been interviewed as part of “an ongoing investigation” but gave no indication of whether he might face further action.

The Secret Service is part of the Department of Homeland Security.

White House deputy chief of staff Taylor Budowich said Mr Comey had put out “what can clearly be interpreted as a hit on the sitting president of the United States”.

“This is deeply concerning to all of us and is being taken seriously,” Mr Budowich wrote on X.

Another White House official James Blair said the post was a “Clarion Call (…) to terrorists & hostile regimes to kill the President of the United States as he travels in the Middle East”.

Mr Trump fired Mr Comey in May 2017 for botching an investigation into 2016 democratic presidential nominee Hillary Clinton, the White House said at the time.

While Mr Comey was the director of the FBI, the agency opened an investigation into possible collusion between the Trump 2016 presidential campaign and Russia to help get Mr Trump elected.

US

Trump officials considerTV show where immigrants compete for US citizenship

Published

5 hours ago

May 17, 2025

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Trump officials considerTV show where immigrants compete for US citizenship

The Trump administration is considering a TV show whereby immigrants compete for the prize of US citizenship, the Department for Homeland Security has confirmed.

It would see contestants compete in tasks across different states and include trivia and “civic” challenges, according to the producer who pitched the idea.

Participants could battle it out to build a rocket at NASA headquarters, Rob Worsoff suggested.

Confirming the administration was considering the idea, Department for Homeland Security spokeswoman Tricia McLaughlin said: “We need to revive patriotism and civic duty in this country, and we’re happy to review out-of-the-box pitches. This pitch has not received approval or rejection by staff.”

It comes amid hardline immigration measures implemented by President Donald Trump on his return to office in January.

Since being back in the White House he has ordered “mass deportations” and used the Alien Enemies Act to deport alleged gang members to countries in Central and South America.

Mr Worsoff, who is a Canadian-American citizen, said his pitch was inspired by his own naturalisation process.

He cautioned that those who “lost” the gameshow would not be punished or deported but said the details of how it would work would be down to TV networks and federal officials.

The producer said the US was in need of “a national conversation about what it means to be American”.

He said the show, if accepted by a network, would “get to know” contestants and “their stories and their journeys”, while “celebrating them as humans”.

Meanwhile, the Department for Homeland Security has asked for 20,000 National Guard troops from various states to assist with its efforts rounding up illegal immigrants.

Currently, the federal Enforcement and Removals Operations agency only has around 7,700 staff – but the boost would help fulfil Mr Trump’s inauguration promises.

The Trump administration has already recruited 10,000 troops under state and federal orders to bolster the US-Mexico border.

Some have now been given the power to detain migrants within a newly militarised strip of land just adjacent to it.

US

‘Mass casualty event’ declared as tornadoes hit Kentucky and Missouri

Published

7 hours ago

May 17, 2025

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'Mass casualty event' declared as tornadoes hit Kentucky and Missouri

At least 21 people have died after tornadoes hit two US states, according to local officials.

Fourteen people have died in Kentucky, its governor Andy Beshear said, while seven have died in Missouri.

The weather system also saw tornadoes tear through Wisconsin, leaving hundreds of thousands of people without power.

In the city of St Louis, five people were confirmed dead and more than 5,000 homes were damaged, mayor Cara Spencer said on Saturday.

The storm system originally hit Scott County, 130 miles south of St Louis, on Friday, killing two people, Sheriff Derick Wheetley said.

The devastation that ensued saw roofs torn off buildings, blown-out windows, toppled trees, and power lines.

St Louis mayor Cara Spencer said: “Our city is grieving tonight. The loss of life and the destruction is truly, truly horrendous.”

Dozens of people are believed to have been injured and in hospital, but the exact numbers in Missouri have not been confirmed.

Kentucky officials described the situation there as a “mass casualty event” after the weather system tore across Laurel County late on Friday.

Several people were taken to hospital, buildings were damaged, and a car flipped over on a busy highway, local officials reported.

Laurel County Sheriff’s Office spokesman Gilbert Acciardo said rescuers had “been on the ground all night looking for possible survivors”.

Kentucky governor Mr Beshear wrote on X that the number of dead in the state was likely to increase from 14 “as we receive more information”.

Further devastation expected in other states

The National Weather Service warned of further devastation hitting Texas, Kansas, and Oklahoma on Saturday.

“Severe thunderstorms producing large to very large hail, damaging gusts, and a couple of tornadoes are expected across the southern Plains,” it said on its website.

The Midwest tornadoes were also expected to hit Illinois, eventually stretching to New Jersey and the Atlantic coast.