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

Published

9 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

‘Never-before-seen’ images of Jeffrey Epstein’s island released – showing ‘disturbing look into his world’

Published

15 hours ago

December 3, 2025

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'Never-before-seen' images of Jeffrey Epstein's island released - showing 'disturbing look into his world'

Images and video of Jeffrey Epstein’s private Caribbean island have been released by politicians in the US.

Democrats on the House Oversight Committee said on X that they were “a harrowing look behind Epstein’s closed doors”.

“We are releasing these photos and videos to ensure public transparency in our investigation and to help piece together the full picture of Epstein’s horrific crimes,” said representative Robert Garcia.

“We won’t stop fighting until we deliver justice for the survivors.”

The images show empty courtyards, bedrooms and other rooms from his villa.

Mr Garcia said: “It’s time for President Trump to release all the files, now.”

President Trump recently approved their release after US Congress voted overwhelmingly in favour.

The US Department of Justice now has until mid-December to release thousands of files linked to civil and criminal cases involving Epstein.

It could shed more light on the paedophile financier, who socialised with figures including Donald Trump, Andrew Mountbatten-Windsor and Peter Mandelson.

Their connections have already been revealed in more than 20,000 other files disclosed last month.

But much more is set to follow as the Epstein Files Transparency Act demands release of all files relating to Epstein, including investigations, prosecutions and custodial matters, as well as records connected to Ghislaine Maxwell.

Politicians have said the files’ release is critical to uncovering whether powerful figures have received special treatment or protection.

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US

Why Putin won’t agree to latest Ukraine peace plan

Published

1 day ago

December 3, 2025

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Why Putin won't agree to latest Ukraine peace plan

The Americans were given the full VIP treatment on their visit to Moscow.

There was a motorcade from the airport, lunch at a Michelin-starred restaurant, and even a stroll around Red Square.

It felt like Steve Witkoff and Jared Kushner were on more of a tourist trail than the path to peace.

They finally got down to business in the Kremlin more than six hours after arriving in Russia. And by that point, it was already clear that the one thing they had come to Moscow for wasn’t on offer: Russia’s agreement to their latest peace plan.

According to Vladimir Putin, it’s all Europe’s fault. While his guests were having lunch, he was busy accusing Ukraine’s allies of blocking the peace process by imposing demands that are unacceptable to Russia.

The Europeans, of course, would say it’s the other way round.

But where there was hostility to Europe, only hospitality to the Americans – part of Russia’s strategy to distance the US from its NATO allies, and bring them back to Moscow’s side.

Putin thinks he’s winning…

Russia wants to return to the 28-point plan that caved in to its demands. And it believes it has the right to because of what’s happening on the battlefield.

It’s no coincidence that on the eve of the US delegation’s visit to Moscow, Russia announced the apparent capture of Pokrovsk, a key strategic target in the Donetsk region.

It was a message designed to assert Russian dominance, and by extension, reinforce its demands rather than dilute them.

…and believes US-Russian interests are aligned

The other reason I think Vladimir Putin doesn’t feel the need to compromise is because he believes Moscow and Washington want the same thing: closer US-Russia relations, which can only come after the war is over.

It’s easy to see why. Time and again in this process, the US has defaulted to a position that favours Moscow. The way these negotiations are being conducted is merely the latest example.

With Kyiv, the Americans force the Ukrainians to come to them – first in Geneva, then Florida.

As for Moscow, it’s the other way around. Witkoff is happy to make the long overnight journey, and then endure the long wait ahead of any audience with Putin.

It all gives the impression that when it comes to Russia, the US prefers to placate rather than pressure.

According to the Kremlin, both Russia and the US have agreed not to disclose the details of yesterday’s talks in Moscow.

I doubt Volodymyr Zelenskyy is filled with hope.

US

Hegseth cites ‘fog of war’ in defence of second US strike on alleged drug boat

Published

1 day ago

December 3, 2025

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Hegseth cites 'fog of war' in defence of second US strike on alleged drug boat

US defence secretary Pete Hegseth has cited the “fog of war” in defence of a follow-up strike earlier this year on a boat alleged to be carrying drugs in the Caribbean Sea.

His comments came on the day the Pope urged Donald Trump not to try to oust Venezuelan President Nicolas Maduro using military force.

Speaking at a cabinet meeting on Tuesday alongside Mr Trump, Mr Hegseth said the US had paused strikes because it was hard to find drug boats.

But strikes against drug traffickers would continue, he said.

During the cabinet meeting at the White House, Mr Hegseth said that he did not see that there were survivors in the water when the second strike was ordered and launched in early September, saying that “the thing was on fire”.

Mr Hegseth also said he “didn’t stick around” for the rest of the mission following the first strike, adding that the admiral in charge had “made the right call” in ordering it, which he “had complete authority to do”.

The Washington Post first reported that Mr Hegseth issued a verbal order for the second strike that killed survivors on the boat.

On Monday, the White House said that Navy vice admiral Frank “Mitch” Bradley acted “within his authority and the law” when he ordered the second strike.

Asked if he supported the second strike on a boat in the Caribbean Sea in September, President Trump said he “didn’t know anything” and “still haven’t gotten a lot of information because I rely on Pete”, referencing Mr Hegseth.

On Tuesday, Pope Leo, the first American pontiff, said it would be better to attempt dialogue or impose economic pressure on Venezuela if Washington wanted to pursue change there.

The Trump administration has been weighing options to combat what it has portrayed as Mr Maduro’s role in supplying illegal drugs that have killed Americans.

The socialist Venezuelan president has denied having any links to the illegal drug trade.

Asked during a news conference about President Trump’s threats to remove Mr Maduro by force, the Pope said: “It is better to search for ways of dialogue, or perhaps pressure, including economic pressure.”

He added that Washington should search for other ways to achieve change “if that is what they want to do in the United States”.

The Pope was speaking as he flew home from visiting Turkey and Lebanon – his first overseas trip in the role.

Mr Maduro has said Venezuelans are ready to defend their country as the US considers a land attack.

The president held a rally in Caracas amid heightened tensions with Mr Trump’s administration, which has been targeting what it says are boats carrying drug smugglers.

Mr Trump met his national security team on Monday evening, having warned last week that land strikes would start “very soon”.

It has not been confirmed what was discussed at the meeting. But White House press secretary Karoline Leavitt told reporters: “There’s many options at the president’s disposal that are on the table – and I’ll let him speak on those.”

US forces have carried out at least 21 strikes on boats it claims were carrying narcotics to its shores over the last few months.

Mr Maduro – considered a dictator by many in the West – said on Monday that Venezuelans were ready “to defend [the country] and lead it to the path of peace”.

“We have lived through 22 weeks of aggression that can only be described as psychological terrorism,” he said.

Venezuela has said the boat attacks, which have killed more than 80 people, amount to murder – and that Mr Trump’s true motivation is to oust Mr Maduro and access its oil.