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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.

Trump tariffs teaser for SEO liberation day explainer

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:
It may be harder for the UK to trump metals tariffs
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.

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A year after I was surrounded in Birmingham, have community rifts healed?

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A year after I was surrounded in Birmingham, have community rifts healed?

As riots broke out across the country last summer following the Southport attack, fear spread in a majority Muslim part of Birmingham that far-right protesters were on their way.

Locals came out on to the streets, and as I was reporting live on air, I was surrounded by a small group of masked men, swearing and gesturing to the camera.

Afterwards, as we were trying to drive away from the area, a man with a knife followed us and attempted to slash a tyre on our broadcast van.

Protesters showed up after word had spread among the muslim community in Birmingham that the far right were planning a protest in the city.
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The moment Becky Johnson was confronted on camera last summer

A year on, I have returned to the area to discuss what happened with some of those who saw their city descend into chaos.

“The local community had lost faith in the local elected members as well as the local policing units,” says Naeem Yousef, 48, who lives nearby. 

“They thought…the only way to protect themselves and the community was by coming out in force.”

Becky Johnson Birmingham anniversary

‘You can’t control their behaviour’

Tanveer Choudhry, 56, agrees. “In every community we have our sort of, shall we call them… idiots, and you can’t control their behaviour,” he says. 

“I think there was a concern that the far-right group that was coming may well be armed… so I think it was just trying to counteract what they thought was coming.”

We are sitting in a cafe, not far from where the unrest broke out last summer.

still from Johnson VT
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Masked men surrounded the Sky team during the unrest

‘They were looking for who they thought were the enemy’

The group I’m with were invited by community activist Naveed Sadiq, who was there that day.

As well as Naveed, there are three other local Muslim men, and two white residents, including Gerry Moynihan.

He recalls deciding to stay at home that day.

“They were looking for what they thought were the enemy – white people – and trying to find white people,” he says.

“Which is why I stayed in my house, because the intelligence I had was, don’t get involved, don’t walk around, and you know, it will pass.”

I ask the group if my team and I were targeted because we were white.

Becky Johnson Birmingham anniversary
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Gerry Moynihan says he decided not to leave his home

“It’s not because you’re white, it’s because they’re actually bored,” Naveed says. “They were wanting a bit of excitement.”

I ask if they think it would have happened if we were all British Asian.

“Of course,” Tanveer replies. “It wasn’t the fact that you were white… it was just the heat of the moment”.

Naeem believes it happened simply because the men involved “do not want anyone filming what they’re doing”.  

“You could have been Asian… they would still try to get you out of the area,” he insists.

Becky Johnson Birmingham anniversary
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Tanveer believes our team would still have been targeted if we were a different ethnicity

‘Are we going to be accepted?’

I’m keen to understand how these men feel now and whether the sentiment that brought people out on to the streets to “protect” them has been reignited by the recent protests outside hotels housing asylum seekers.

The answer, from Joe Khann, a local Muslim man, would surprise many.

“I would like to go and join them,” he says, referring to the anti-immigration protesters who have gathered several times in Epping. 

“We have this problem within our own communities, and people don’t talk about it. We feel exactly the same and we understand how the English feel with the immigration,” he explains.

still from Johnson VT on Birmingham unrest
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‘We feel exactly the same’ on immigration, says Joe Khann

“We’re having people who are getting married back home, they get married for six months, get divorced…and the government gives them all their help to get accommodation, their national insurance numbers and all that,” he says.

“We’re getting fed up within our own community because we hear this constantly.”

However, he thinks if he did try to join in protests, people would “think I’m an immigrant”.

He says he is “born here, 58, and they look at me as a foreigner or a migrant”.

Naeem agrees. “The question is for us now, as people who are born and bred in this country, what is our identity? Who are we?” he asks. 

“As a white person born in this country, you are automatically accepted. Are we going to be accepted? How many generations will it take for us to be accepted?”

Becky Johnson Birmingham anniversary
Image:
Naeem (left) says even those born in the UK question their identity

‘You have to blame someone’

Naeem is also concerned about immigration.

“We have an influx of people that we do not know about, and they have no loyalty to the area,” he says.

“I believe that the average white guy… isn’t racist, they’re just fed up,” adds Naveed. 

However, these men do have grievances, particularly with the media.

“We feel that we have a two-tier journalists system where when the colour is like mine we get different justice and when the colour is a bit paler it’s different,” Naveed says.

still from Johnson VT on Birmingham unrest
Image:
‘When the colour is like mine we get different justice,’ says Naveed (left)

‘We have become the bogeyman’

“When there’s criminality, and it’s on the news, a Muslim has to be identified by his religion,” Naeem says. 

He believes Muslims have become the “bogeyman” in many people’s minds.

“Where you don’t have housing for example, where the crime has increased, you have to blame someone,” he says.

“Prior it was the Irish community, now it’s the Muslim community.

“It’s a distraction from the actual real issues and how you can resolve them but let’s just put it on to the Muslim community for now, let’s just distract the whole nation and say look it’s the problem with asylum, it’s a problem with Muslims,” he says.

After leaving, I head over to the spot on the roundabout where my team were targeted last year.

As I stand there, my colleague sees a man imitating pulling the trigger of a gun at me from his car.

This is Britain, in broad daylight. 

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UK-France migrant returns deal comes into force

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UK-France migrant returns deal comes into force

Sir Keir Starmer and Emmanuel Macron’s migrant deal comes into force today, with detentions set to begin by the end of the week.

The “one in, one out” pilot scheme – which allows the UK to send some people who have crossed the Channel back to France in exchange for asylum seekers with ties to Britain – was signed last week, and has now been approved by the European Commission.

Politics Hub: Follow live updates

It comes as 2025 is on course to be a record year for crossings.

Approximately 25,436 people have already made the journey this year, according to PA news agency analysis of Home Office figures – 49% higher than at the same point in 2024.

The prime minister and the French president hailed the deal as a “good agreement” when it was first announced during the latter’s visit to the UK last month.

The scheme also means that anyone arriving in a small boat can be detained immediately, with space set aside at immigration removal centres in anticipation of their arrival.

Sir Keir said the ratification of the treaty will “send a clear message – if you come here illegally on a small boat you will face being sent back to France”.

Ministers have so far declined to say how many people could be returned under the deal, however, there have been reports that under the scheme only 50 people a week will be returned to France.

Analysis: Deal will need to go much further to work

Sky News political correspondent Rob Powell said while it was a “policy win” for the government, the numbers must eventually “go a lot higher” than 50 per week if it is to work as a deterrent.

“The average crossing rate is about 800 a week, so this will need to go up by a sizeable factor for that message to start seeping through to people trying to make that crossing,” Powell added.

The aim will be to make asylum seekers believe the “risk of going back to France is so big that they shouldn’t bother parting with their cash and paying smugglers” to make the crossing.

Read more:
What is the UK-France migrant returns deal?
Clampdown on social media ads for Channel crossings unveiled

Migrants in Dunkirk, France, preparing to cross the English Channel
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Migrants in Dunkirk, France, preparing to cross the English Channel.

The Conservatives have branded the agreement a “surrender deal” and said it will make “no difference whatsoever”.

Under the terms of the agreement, adults arriving on small boats will face being returned to France if their asylum claim is inadmissible.

In exchange, the same number of people will be able to come to the UK on a new legal route, provided they have not attempted a crossing before and subject to stringent documentation and security checks.

The pilot scheme is set to run until June 2026, pending a longer-term agreement.

Home Secretary Yvette Cooper will face questions on the agreement on Sky News Breakfast this morning.

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Police warn of mass arrests if Palestine Action protest goes ahead

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Police warn of mass arrests if Palestine Action protest goes ahead

Police are warning of mass arrests if a protest in support of the banned group Palestine Action goes ahead on Saturday.

Hundreds of people are expected to turn out for the demonstration, which is understood to be planned for London.

However, the Metropolitan Police said “anyone showing support for the group can expect to be arrested.”

“We are aware that the organisers of Saturday’s planned protest are encouraging hundreds of people to turn out with the intention of placing a strain on the police and the wider criminal justice system,” said a spokesperson.

The organisers, a pressure group called Defend Our Juries, denied their protest will try to overwhelm the police and justice system.

“If we are allowed to protest peacefully and freely, then that is no bother to anyone,” said the group in a statement.

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What’s happening to Palestine Action?

Palestine Action was banned under terrorism laws after two aircraft were damaged at RAF Brize Norton on 20 June.

Home Secretary Yvette Cooper said the vandalism of the planes was “disgraceful” and accused the group of a “long history of unacceptable criminal damage”.

The ban means membership of, or support for, Palestine Action is a criminal offence punishable by up to 14 years in prison.

More than 200 people supporting the group were arrested at Defend Our Juries protests across the UK last month, many of whom held placards with the message: “I oppose genocide, I support Palestine Action.”

Downing Street has urged people not to attend this weekend’s protest.

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Monday's protesters waved flags and banged pan lids
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Monday’s protesters waved flags and banged pan lids

It comes after around 40 people gathered outside Labour HQ on Monday to protest the party’s stance on Gaza.

They were watched by a small group of police officers as they chanted phrases including: “Shame on Keir Starmer, shame on the Labour Party, shame on David Lammy.”

Separately, the Board of Deputies of British Jews has also confirmed it will protest this weekend, with community organisations marching through central London to Downing Street on Sunday.

They are calling for the government not to recognise the state of Palestine without all hostages taken by Hamas being released.

Last week, Sir Keir Starmer said he planned to recognise Palestine by the UN General Assembly meeting in September, unless Israel met certain conditions including agreeing a ceasefire and improving the humanitarian situation in Gaza.

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