What are Donald Trump’s tariffs, what is ‘liberation day’ and how does it all affect the UK?
If there is a word that has dominated Donald Trump’s second term, it’s tariffs.
Aluminium, steel, cars and champagne have all been in his firing line, while China, Canada and Mexico are the countries targeted with the heaviest costs.
Along the way, there have been threats, pauses and postponements.
So what are tariffs, what is in the pipeline – and what could all this mean for the UK?
What are tariffs and why is Trump threatening to use them?
Tariffs are taxes on goods imported into the US.
It is the importers buying the goods who pay the tariffs – therefore, American companies.
Ultimately, the intent is to protect US manufacturing and bolster jobs by making foreign-made products less attractive.
However, there is a knock-on effect: to compensate for tariffs, companies put up their prices, so customers end up paying more for goods.
Tariffs can also damage foreign countries as they make their products pricier and harder to sell.
In his second term, Mr Trump has frequently used them – or the threat of them – as a trade weapon.
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Trump’s tariffs: What can we expect?
They are a key part of Mr Trump’s efforts to reshape global trade relations, and he plans to impose a swathe of what he calls “reciprocal” taxes that would match tariffs levied by other nations.
Tariffs were also part of his playbook in his first term, when he imposed taxes on most goods coming from China and used them as a bargaining chip to force Canada and Mexico to renegotiate a North American trade pact.
On his first day back in office, the US president promised 25% tariffs on all products coming into the US from its nearest neighbours Mexico and Canada – ostensibly to force the countries to tackle illegal migration and fentanyl crossing the border.
What is liberation day?
Mr Trump has branded 2 April “liberation day”, when he could unveil the reciprocal tariffs on countries deemed to be giving the US a bad deal on trade.
The extent of potential tariffs and countries affected remains unclear, with Mr Trump at times sending mixed messages.
On 30 March, he said “all countries” could expect to be hit by tariffs.
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What is Trump’s ‘Liberation Day’?
Speaking from Air Force One, the US president rubbished a question from a reporter who asked whether it was true he was planning on targeting between 10 and 15 countries.
“Who told you 10-15 countries? You didn’t hear it from me,” he said.
When pressed on how many he was planning to hit, he said: “You’d start with all countries, let’s see what happens.”
Two days prior, he said he was open to carving out deals with countries seeking to avoid US tariffs, but that those agreements would be negotiated after 2 April.
He had previously said he “may give a lot of countries breaks, but it’s reciprocal”, adding: “We might be even nicer than that.”
How could the UK be affected?
The UK hopes an economic deal with the US will spare the country from some of the tariffs.
Sir Keir Starmer and Mr Trump have had “productive negotiations” towards a UK-US “economic prosperity deal”, Downing Street has said.
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‘Everything on table over US tariffs’
The two leaders discussed a possible deal in a phone call on Sunday and agreed negotiations will “continue at pace”, according to a statement released on Sunday 30 March.
The day before the so-called “liberation day”, Sir Keir told Sky News political editor Beth Rigby the UK was “working hard on an economic deal” with the US and said “rapid progress” has been made.
But, he admitted: “Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.
“But I have to act in the national interest and that means all options have to remain on the table.”
Sir Keir added: “We are discussing economic deals. We’re well advanced.
“These would normally take months or years, and in a matter of weeks, we’ve got well advanced in those discussions, so I think that a calm approach, a collected approach, not a knee-jerk approach, is what’s needed in the best interests of our country.”
Mr Trump has not explicitly said the UK is in his sights for further tariffs.
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.
But the tariffs Mr Trump has already announced would have a big impact on the UK – particularly the car tariff.
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Business secretary hopes Trump tariffs will be ‘reversed in weeks or months’
Jonathan Reynolds, the business and trade secretary, earlier told Sky News he is “hopeful” the tariffs can be reversed soon.
But he warned: “The longer we don’t have a potential resolution, the more we will have to consider our own position in relation to [tariffs], precluding retaliatory tariffs.”
He added the government was taking a “calm-headed” approach in the hope a deal can be agreed, but said it is only “reasonable” that retaliatory tariffs are an option, echoing Sir Keir’s sentiments over the weekend.
What tariffs have already been announced?
Some tariffs have already come into effect, while Mr Trump has confirmed some that will come in on 2 April.
He has said a 25% tariff on all cars imported to the US will come into effect, with a similar tariff on car parts expected to follow in May.
This could prove even more complicated for American car makers, who source components from around the world even if the vehicle is made in the US.
But Mr Trump has insisted the move will “continue to spur growth”, pointing to plans from Hyundai – the South Korean car maker – to build a $5.8bn (£4.5bn) steel plant in Louisiana.
The tariff could have a huge impact on the UK’s car industry, including on manufacturers such as Jaguar Land Rover, Aston Martin and Rolls-Royce.
Official data shows the US is the UK car sector’s largest single market by country, accounting for £6.4bn worth of car exports in 2023 – 18.4% of the total.
Trump has also said he will place a 25% tariff on all imports from any country that buys oil or gas from Venezuela, which includes the US itself – in addition to imposing new tariffs on the South American country.
On 12 March, a 25% tariff on all steel and aluminium imports to the US came into effect, affecting UK products worth hundreds of millions of pounds.
The move came after he placed a 10% tax on all imports from China, which he later doubled to 20%.
He placed 25% tariffs on Mexico and Canada, but paused them for a month two days after they came into effect, meaning they are set to resume on 2 April.
The pause did not fully cover a tariff of 10% on Canadian energy products.
What has been the global response to tariffs?
There has widely been condemnation of the tariffs, especially from countries worst affected like Mexico and Canada.
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Canadian PM: ‘Tariffs are an attack’
Some have imposed, or threatened to impose, retaliatory tariffs.
China has already hit back with retaliatory tariffs covering a range of US goods, including a 15% tariff on coal and liquefied natural gas products, a 10% tariff on US crude oil and tariffs of up to 15% on key US farm exports.
Canada imposed tariffs of its own on US products, including a 25% reciprocal tariff on US steel and aluminium products and tariffs worth an estimated C$29.8bn (£16bn) on a wide range of US products including orange juice, peanut butter, alcohol, coffee and clothing.
Read more on tariffs:
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Stock markets tumble as Trump tariffs loom
The European Union has said it will impose retaliatory tariffs on the US, but when they will come into force is unknown.
The European Commission initially threatened to impose “countermeasures” affecting €26bn (£21.9bn) of US goods from 1 April, but later delayed this until the middle of April.
The bloc said the delay was because it wanted “additional time for discussions” with the US after Mr Trump threatened a 200% tariff on EU alcohol – including wine and champagne – if the bloc imposed duties on US whiskey.
Any tariffs imposed by the bloc would not only impact US steel and aluminium products, but also textiles, home appliances, agricultural goods and whiskey.
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 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.
The parents of survivors of the Southport attack have revealed the “untold stories” of how their “hero” children escaped.
Axel Rudakubana, 18, murdered Elsie Dot Stancombe, seven, Bebe King, six, and Alice da Silva Aguiar, nine, in what the chairman of the public inquiry Sir Adrian Fulford called “one of the most egregious crimes in our country’s history”.
Eight children were injured along with two adults at a Taylor Swift-themed class in the Merseyside seaside town on 29 July last year, while 15 others escaped without physical injuries.
The surviving victims and their families have been granted anonymity during the inquiry, with one girl referred to as C3. Her father was the first to give evidence at Liverpool Town Hall on Wednesday.
Alice da Silva Aguiar, Elsie Dot Stancombe and Bebe King were murdered in the attack
Reading a statement on behalf of him and his wife, he told how their daughter was the first girl to escape the scene by running from the Hart Space building and hiding behind a parked car before jumping through an open car door.
“Our nine-year-old daughter was stabbed three times in the back by a coward she didn’t even see,” he said.
“Although she didn’t know what was happening – she knew she had to run. She ran out of the studio door, down the stairs, and out of the building.”
Read more: Southport inquiry as it happened
He said she can be seen “looking scared, confused and pained” in CCTV footage of the incident, adding: “It was troubling for us to see what she had to go through, before either of her parents had arrived at the scene.”
“We are so thankful and proud that despite being critically injured, she was able to make the decisions she did in that terrible moment,” he said.
The girl’s father said his daughter “continues to astound” them with the way she dealt with the attack and her recovery, saying: “It has been inspiring for us to witness.”
Inquiry chair Sir Adrian Fulford at Liverpool Town Hall. Pic: PA
He said she has difficulty sleeping, experiences flashbacks, looks over her shoulder scanning for potential danger when she leaves the house, has a fear of loud noises and has to turn off some songs when they come on the radio.
“Our daughter knows that she is loved,” he said.
“It is through this support and love that she will continue to thrive. We couldn’t be prouder of her. She is our hero.”
Stabbed 33 times
The parents of a girl referred to as C1 told how their “beautiful, articulate, fun-loving little girl” was stabbed 33 times.
After being attacked she escaped the building, but Rudakubana was seen dragging her back inside in CCTV footage played during his sentencing hearing, which drew gasps in court, before she was stabbed 20 more times.
“That is how she became known in this nightmare. The girl that was dragged back in,” her mother said.
Police at the scene. Pic: PA
She thanked the teachers who escaped to call police and flag down help but said: “The most painful of truths for us though, and what has been most devastating to come to terms with, is that there were no adults to help during both of her attacks.
“She was only supported by other children. The courage and strength she found leaves me crushed, but in complete awe.”
She added: “It is these untold stories of remarkable strength and bravery that are missing when we have heard other accounts of this day.”
The mother said the “hours and days that followed the attack were a living hell” and her daughter’s memories – including a concert of her “idol” Taylor Swift – have “been forfeited to make space for the trauma that she carries”.
“We tell her she was brave. How proud we are that she was able to help other girls. How her strength makes us feel strong. How important what she did that day was. She is her own hero. She may be a survivor of this attack, but she is still trying to survive this, every single day,” she said.
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‘We need to understand what went wrong’
Attack ‘changed everything’
The mother of a girl referred to as C8 said she was “like any other seven-year-old little girl”, “with an incredible energy” and “full of life”.
But in a statement read out by a legal representative, she said the attack last year “changed everything” when she got a “panicked phone call” from a friend’s mother, who couldn’t find the girls.
“That moment, the sound of fear in her voice and the panic I felt will never leave me,” she said.
“I rushed to the scene and what I saw is something no parent should ever see. My daughter had sustained serious physical injuries including a stab wound to her arm and a cut to her face and chin.”
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‘We don’t want Elsie forgotten’
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She said her daughter “remembers the attack vividly” and later told her “she thought it had to be fake, because she couldn’t believe something that terrible could really be happening”.
“Where she was once eager to go off with her friends, she now needs my support if it is somewhere public or unknown,” she said.
“Simple days out now need a level of safety planning that we would never have considered before.”
‘Constant flashbacks’
The mother of a girl referred to as Q, who escaped without being physically injured, told how she arrived to collect her daughter to find “children running from the building, screaming and fearing for their lives”.
In a statement read to the inquiry by a legal representative on her behalf, she said it was “the most horrific experience of my life”.
“What I saw on that day will stick with me forever, I constantly have flashbacks and relive what happened,” she said.
She said her daughter has become “very withdrawn” since the attack and has asked her parents, “How will I ever be normal again?”
Rudakubana was jailed for a minimum of 52 years in January and is being investigated over an alleged attack on a prison officer at Belmarsh prison in May.
The public inquiry, announced by Home Secretary Yvette Cooper in January, is looking into whether the attack could or should have been prevented, given what was known about the killer.
Rudakubana, who was born in Cardiff, had contact with police, the courts, the youth justice system, social services and mental health services, and was referred to the government’s anti-extremism Prevent scheme three times before the murders.
A rapid review into his contact with Prevent found his case should have been kept open and that he should have been referred to Channel, another anti-terror scheme.
C1’s mother said: “She deserves the truth, she deserves accountability. She deserves an apology. Our girls deserve an apology.
“Backed up by the promise that changes will be made and this will not be allowed to happen again.”
UK
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While the politicians talk, so many people come from around the world to try to get across the Channel on small boats. But why?
Why make such a perilous crossing to try to get to a country that seems to be getting increasingly hostile to asylum seekers?
As the British and French leaders meet, with small boats at the forefront of their agenda, we came to northern France to get some answers.
It is not a new question, but it is peppered with fresh relevance.
Over the course of a morning spent around a migrant camp in Dunkirk, we meet migrants from Gaza, Iraq, Eritrea, South Sudan, Sri Lanka and beyond.
Some are fearful, waving us away; some are happy to talk. Very few are comfortable to be filmed.
All but one man – who says he’s come to the wrong place and actually wants to claim asylum in Paris – are intent on reaching Britain.
They see the calm seas, feel the light winds – perfect conditions for small boat crossings.
John has come here from South Sudan. He tells me he’s now 18 years old. He left his war-torn home nation just before his 16th birthday. He feels that reaching Britain is his destiny.
“England is my dream country,” he says. “It has been my dream since I was at school. It’s the country that colonised us and when I get there, I will feel like I am home.
“In England, they can give me an opportunity to succeed or to do whatever I need to do in my life. I feel like I am an English child, who was born in Africa.”
‘England is my dream country,’ John tells Adam Parsons
He says he would like to make a career in England, either as a journalist or in human resources, and, like many others we meet, is at pains to insist he will work hard.
The boat crossing is waved away as little more than an inconvenience – a trifle compared with the previous hardships of his journey towards Britain.
We meet a group of men who have all travelled from Gaza, intent on starting new lives in Britain and then bringing their families over to join them.
One man, who left Gaza two years ago, tells me that his son has since been shot in the leg “but there is no hospital for him to go to”.
Next to him, a man called Abdullah says he entered Europe through Greece and stayed there for months on end, but was told the Greek authorities would never allow him to bring over his family.
Britain, he thinks, will be more accommodating. “Gaza is being destroyed – we need help,” he says.
Abdullah says ‘Gaza is being destroyed – we need help’
A man from Eritrea tells us he is escaping a failing country and has friends in Britain – he plans to become a bicycle courier in either London or Manchester.
He can’t stay in France, he says, because he doesn’t speak French. The English language is presented as a huge draw for many of the people we talk to, just as it had been during similar conversations over the course of many years.
I ask many of these people why they don’t want to stay in France, or another safe European country.
Some repeat that they cannot speak the language and feel ostracised. Another says that he tried, and failed, to get a residency permit in both France and Belgium.
But this is also, clearly, a flawed survey. Last year, five times as many people sought asylum in France as in Britain.
And French critics have long insisted that Britain, a country without a European-style ID card system, makes itself attractive to migrants who can “disappear”.
Read more:
Channel crossings rise 50% in first six months of 2025
French police forced to watch on as migrants attempt crossing
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Migrant Channel crossings hit new record
A young man from Iraq, with absolutely perfect English, comes for a chat. He oozes confidence and a certain amount of mischief.
It has taken him only seven days to get from Iraq to Dunkirk; when I ask how he has made the trip so quickly, he shrugs. “Money talks”.
He looks around him. “Let me tell you – all of these people you see around you will be getting to Britain and the first job they get will be in the black market, so they won’t be paying any tax.
“Back in the day in Britain, they used to welcome immigrants very well, but these days I don’t think they want to, because there’s too many of them coming by boat. Every day it’s about seven or 800 people. That’s too many people.”
“But,” I ask, “if those people are a problem – then what makes you different? Aren’t you a problem too?”
He shakes his head emphatically. “I know that I’m a very good guy. And I won’t be a problem. I’ll only stay in Britain for a few years and then I’ll leave again.”
A man from Sri Lanka says he “will feel safe” when he gets to Britain; a tall, smiling man from Ethiopia echoes the sentiment: “We are not safe in our home country so we have come all this way,” he says. “We want to work, to be part of Britain.”
Emmanuel is another from South Sudan – thoughtful and eloquent. He left his country five years ago – “at the start of COVID” – and has not seen his children in all that time. His aim is to start a new life in Britain, and then to bring his family to join him.
He is a trained electrical engineer, but says he could also work as a lorry driver. He is adamant that Britain has a responsibility to the people of its former colony.
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“The British came to my country – colonising, killing, raping,” he said. “And we didn’t complain. We let it happen.
“I am not the problem. I won’t fight anyone; I want to work. And if I break the laws – if any immigrant breaks the laws – then fine, deport them.
“I know it won’t be easy – some people won’t like me, some people will. But England is my dream.”
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