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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.

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Trump100 Day 52: Tesla, tariffs and a step closer to truce

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.

Read more on tariffs:
It may be harder for the UK to trump metals tariffs this time round
‘Canadianos’ and cancelled Vegas trips: How Canadians are acting with defiance

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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Trump adviser tells Sky ‘stop that crap’

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.

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Day 67: When Martha met Marjorie

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Day 67: When Martha met Marjorie

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The Atlantic has published the full Signal messages at the heart of the growing security scandal, revealing strike timings, military coordination, and the accidental inclusion of journalist Jeffrey Goldberg.

On Day 67, US correspondents James Matthews and Martha Kelner unpack why Goldberg was already unpopular with Trump, and what this episode says about the people driving American military and political decision-making.

Plus, Martha is confronted by Republican representative Marjorie Taylor Greene, who praises defence secretary Pete Hegseth… and tells Martha to “go back to your own country”.

If you’ve got a question you’d like James, Martha, and Mark to answer, you can email it to trump100@sky.uk.

Help us understand more about our listeners by taking our survey! 👉 This form 👈 should only take a few minutes to complete, and Sky anonymises the responses as much as possible. Thank you.

Don’t forget, you can also watch all episodes on our YouTube channel.

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President Trump announces 25% tariff on all imported cars ahead of ‘liberation day’

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President Trump announces 25% tariff on all imported cars ahead of 'liberation day'

US President Donald Trump has announced a new 25% tariff on all imported cars.

Signing an executive order, Mr Trump said the tax would kick in on 2 April – what he has called “liberation day”.

This is when all his retaliatory import tariffs are supposed to take effect, but they have been delayed before.

It comes amid the continued fallout from the Signalgate security breach in Washington.

What was said in the Signal chat?

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‘Another day of Signalgate’

The move ratchets up the global trade war Mr Trump himself kicked off.

Speaking late on Wednesday, Mr Trump said the proposal: “Will continue to spur growth. We’ll effectively be charging a 25% tariff.”

However, the tariffs could be complicated as even American car makers source components from around the world – meaning they could also face higher costs and lower sales.

The announcement also drew swift condemnation from the European Union and from Canadian Prime Minister Mark Carney, who called it a “direct attack” on Canadian workers.

During his second term, Mr Trump has used tariffs frequently as a trade weapon.

Donald Trump announcing the 25% tariff on imported cars.
Image:
Donald Trump announcing the 25% tariff on imported cars.

He cited plans from South Korean car maker Hyundai to build a $5.8bn (£4.5bn) steel plant in Louisiana as evidence the economic measures would bring back manufacturing jobs.

Despite Mr Trump’s optimism, shares in General Motors fell by about 3% in Wednesday afternoon trading.

Ford’s stock was up slightly, but shares in Stellantis, the owner of Jeep and Chrysler, dropped nearly 4%.

Even American and foreign firms already with domestic plants still rely on Canada, Mexico and other countries for parts and finished vehicles – meaning prices could increase and sales decline as new factories take time to build.

Tariffs are a key part of Mr Trump’s efforts to reshape global trade relations.

He plans to impose what he calls “reciprocal” taxes on 2 April that would match tariffs and sales taxes levied by other nations.

He has already placed a 20% tax on all imports from China.

Similarly, he placed 25% tariffs on Mexico and Canada, with a lower 10% tariff on Canadian energy products.

Signal security breach

As Mr Trump was keen to talk up his tariffs, the rest of Washington was discussing the security breach that rocked the Capitol.

Read more:
Atlantic publishes more texts from group chat
Trump White House rolls out playbook response
JD Vance announces trip to Greenland

In a group called “Houthi PC small group”, specific details of a US attack on Houthis were shared with intelligence director Tulsi Gabbard, national security adviser Mike Waltz, vice president JD Vance and more.

However, a senior journalist for the magazine The Atlantic, Jeffrey Goldberg, was also somehow added to the Signal group chat.

Goldberg published a story first on Monday about the incident.

The White House had sought to downplay the leak of the messages, saying no classified information had been disclosed.

Goldberg then published a follow-up story releasing the messages themselves earlier on Wednesday.

Concerns have been raised about the security of some of the most important members of the US administration using a commercial app.

During a hearing in front of Congress, some members outlined feared security issues with Signal.

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‘This is when the bombs will drop’: What was said in Trump officials’ group chat

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'This is when the bombs will drop': What was said in Trump officials' group chat

A group chat of top US officials – which a journalist was accidentally added to – discussed plans to conduct airstrikes on Yemen’s Iran-backed Houthis and fiery critique of “pathetic” Europe.

Editor-in-chief of The Atlantic, Jeffrey Goldberg, was added to the “Houthi PC small group” on Signal on Thursday 13 March.

He wrote about what was said in the days that followed in his article The Trump Administration Accidentally Texted Me Its War Plans.

The White House sought to downplay the incident – leading to a second article from The Atlantic going into more detail about discussion it said “veered toward the operational”.

Here’s what we know was said on encrypted messaging service Signal – in a group that included US vice president JD Vance, defence secretary Pete Hegseth, national security adviser Mike Waltz and director of national intelligence Tulsi Gabbard.

Thursday 13 March

This day was seemingly aimed at establishing who would make up the small group.

A message to the group, from Michael Waltz read: “Team – establishing a principles [sic] group for coordination on Houthis, particularly for over the next 72 hours. My deputy Alex Wong is pulling together a tiger team at deputies/agency Chief of Staff level following up from the meeting in the Sit Room this morning for action items and will be sending that out later this evening.”

The message continued: “Pls provide the best staff POC from your team for us to coordinate with over the next couple days and over the weekend. Thx.”

One minute later, the secretary of state Marco Antonio Rubio wrote: “Mike Needham for State,” apparently designating the current counsellor of the state department as his representative.

JD Vance wrote: “Andy baker for VP.” One minute after that, Tulsi Gabbard, the director of national intelligence, wrote: “Joe Kent for DNI.”

Nine minutes later, treasury secretary Scott Bessent wrote: “Dan Katz for Treasury.”

At 4.53pm Pete Hegseth wrote: “Dan Caldwell for DoD.”

And at 6.34pm, a user called “Brian” wrote “Brian McCormack for NSC.” Someone called “John Ratcliffe” then wrote with the name of a CIA official to be included in the group.

Who’s who in the chat?

Eighteen people were part of the chat – here is who appears to have been added and how they were identified in the chat:

JD Vance – US deputy president

Michael Waltz – national security adviser

Marco Antonio Rubio – the secretary of state, identified as MAR

Tulsi Gabbard – the director of national intelligence, identified as TG

Scott Bessent – treasury secretary, identified as Scott B

Pete Hegseth – US defence secretary

Susie Wiles – White House chief of staff

Stephen Miller – deputy White House chief of staff, called S M in the chat (identified only by his initials, which the report says Mr Goldberg “took to stand for Stephen Miller”)

Steve Witkoff – US Middle East and Ukraine negotiator

Jeffrey Goldberg – editor-in-chief of The Atlantic magazine, identified as JG

Other members included various National Security Council officials and a CIA official who was not named in the report because they are an active intelligence officer.

Friday 14 March

At 8.05am, Mr Waltz texted the group: “Team, you should have a statement of conclusions with taskings per the Presidents [sic] guidance this morning in your high side inboxes,” with “high side” referring to classified computer systems.

“State and DOD [Department of Defence], we developed suggested notification lists for regional Allies and partners. Joint Staff is sending this am [morning] a more specific sequence of events in the coming days and we will work w DOD to ensure COS [chief of staff], OVP [office of the vice president] and POTUS [president of the United States] are briefed.”

Mr Goldberg says at this point, a “fascinating” policy discussion commenced, during which JD Vance wrote: “Team, I am out for the day doing an economic event in Michigan. But I think we are making a mistake.

“3 percent of US trade runs through the suez. 40 percent of European trade does. There is a real risk that the public doesn’t understand this or why it’s necessary. The strongest reason to do this is, as POTUS said, to send a message.

“I am not sure the president is aware how inconsistent this is with his message on Europe right now. There’s a further risk that we see a moderate to severe spike in oil prices. I am willing to support the consensus of the team and keep these concerns to myself. But there is a strong argument for delaying this a month, doing the messaging work on why this matters, seeing where the economy is, etc.”

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At 8.27am, a message arrived from the Pete Hegseth reading: “VP: I understand your concerns – and fully support you raising w/ POTUS. Important considerations, most of which are tough to know how they play out (economy, Ukraine peace, Gaza, etc). I think messaging is going to be tough no matter what – nobody knows who the Houthis are – which is why we would need to stay focused on: 1) Biden failed & 2) Iran funded.

“Waiting a few weeks or a month does not fundamentally change the calculus. 2 immediate risks on waiting: 1) this leaks, and we look indecisive; 2) Israel takes an action first – or Gaza cease fire falls apart – and we don’t get to start this on our own terms. We can manage both.

“We are prepared to execute, and if I had final go or no go vote, I believe we should. This [is] not about the Houthis. I see it as two things: 1) Restoring Freedom of Navigation, a core national interest; and 2) Reestablish deterrence, which Biden cratered. But, we can easily pause. And if we do, I will do all we can to enforce 100% OPSEC – operations security.

“I welcome other thoughts.”

Teaser for explainer on what was said in leaked war plans group chat

Later in the conversation, Mr Waltz criticised the limited capabilities of European navies, writing: “Whether it’s now or several weeks from now, it will have to be the United States that reopens these shipping lanes. Per the president’s request we are working with DOD and State to determine how to compile the cost associated and levy them on the Europeans.”

Mr Vance addressed Mr Hegseth in a message reading: “If you think we should do it let’s go. I just hate bailing Europe out again.”

Mr Hegseth replied: “VP: I fully share your loathing of European free-loading. It’s PATHETIC. But Mike is correct, we are the only ones on the planet (on our side of the ledger) who can do this. Nobody else even close. Question is timing. I feel like now is as good a time as any, given POTUS directive to reopen shipping lanes. I think we should go; but POTUS still retains 24 hours of decision space.”

An account believed to be the deputy White House chief of staff, Stephen Miller, then said: “As I heard it, the president was clear: green light, but we soon make clear to Egypt and Europe what we expect in return. We also need to figure out how to enforce such a requirement. EG, if Europe doesn’t remunerate, then what? If the US successfully restores freedom of navigation at great cost there needs to be some further economic gain extracted in return.”

This was followed by the last text of the day, from Mr Hegseth, who wrote at 9.46am: “Agree.”

Saturday 15 March

At 11.44am, Mr Hegseth posted in Signal a “TEAM UPDATE”.

The Atlantic initially opted not to share what the update said, with Mr Goldberg writing in his article: “The information contained in them, if they had been read by an adversary of the United States, could conceivably have been used to harm American military and intelligence personnel, particularly in the broader Middle East, Central Command’s area of responsibility.”

But in a follow-up article published on Wednesday, The Atlantic shared more of the conversation from Saturday, including the team update.

It came after the White House had sought to downplay the leak of information about plans to strike Houthi rebels in Yemen – saying no classified information had been disclosed.

The text under Mr Hegseth’s “TEAM UPDATE” message read: “TIME NOW (1144et): Weather is FAVORABLE. Just CONFIRMED w/CENTCOM [Centcom – or Central Command – is the military’s combatant command for the Middle East] we are a GO for mission launch.”

The text continued: “1215et: F-18s LAUNCH (1st strike package).

“1345: ‘Trigger Based’ F-18 1st Strike Window Starts (Target Terrorist is @ his Known Location so SHOULD BE ON TIME – also, Strike Drones Launch (MQ-9s)”.

Further texts by the Pentagon chief followed, the magazine reported: “1410: More F-18s LAUNCH (2nd strike package)”.

“1415: Strike Drones on Target (THIS IS WHEN THE FIRST BOMBS WILL DEFINITELY DROP, pending earlier ‘Trigger Based’ targets).”

He also wrote: “1536 F-18 2nd Strike Starts – also, first sea-based Tomahawks launched.” And then: “MORE TO FOLLOW (per timeline)”.

“We are currently clean on OPSEC” (operational security), he added.

“Godspeed to our Warriors.”

Mr Goldberg said the only person to respond to Mr Hegseth was Mr Vance, who wrote: “I will say a prayer for victory”, along with two prayer emojis.

He said it was at this point that he sat in his car in a supermarket car park, waiting to see if Houthi targets would be bombed.

Pic: The Atlantic
Image:
Pic: The Atlantic

At 1.48pm, Mr Waltz provided an update, which Mr Goldberg initially did not quote in full.

But in the second article, The Atlantic shared the message, which contained real-time intelligence about conditions at an attack site, apparently in Sanaa, Yemen’s capital city.

It read: “VP. Building collapsed. Had multiple positive ID. Pete, Kurilla, the IC, amazing job.”

The Atlantic reported that Mr Waltz was referring to Mr Hegseth, General Michael E. Kurilla, the commander of Central Command and the intelligence community, or IC.

It said the reference to “multiple positive ID” suggested that US intelligence had confirmed the identities of the Houthi target, or targets.

At 1.54pm, Mr Vance responded to Mr Waltz’s message saying “What?” – apparently confused by its contents.

Mr Goldberg said it was at around 1.55pm that he went on X and searched Yemen, and saw reports of explosions being heard across Sanaa.

At 2pm, Mr Waltz responded on the group saying: “Typing too fast. The first target – their top missile guy – we had positive ID of him walking into his girlfriend’s building and it’s now collapsed.”

A minute later, Mr Vance wrote back: “Excellent”.

35 minutes after, John Ratcliffe wrote: “A good start.”

Mr Goldberg said Mr Waltz responded with three emojis: a fist, an American flag and fire.

Later that afternoon, Mr Hegseth posted: “CENTCOM was/is on point. Great job all. More strikes ongoing for hours tonight, and will provide full initial report tomorrow. But on time, on target, and good readouts so far.”

Others soon joined in, including Mr Rubio, who wrote, “Good Job Pete and your team!!,” and Susie Wiles, who texted: “Kudos to all – most particularly those in theater and CENTCOM! Really great. God bless.”

Mr Witkoff responded with five emojis: two hands-praying, a flexed bicep, and two American flags.

Tulsi Gabbard responded: “Great work and effects!”

Mr Goldberg said the after-action discussion included assessments of damage done, including the likely death of a specific individual – he did not say who.

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