Donald Trump announces sweeping global trade tariffs – including 10% on UK imports
Donald Trump has announced a 10% trade tariff on all imports from the UK – as he unleashed sweeping tariffs across the globe.
Speaking at a White House event entitled “Make America Wealthy Again”, the president held up a chart detailing the worst offenders – which also showed the new tariffs the US would be imposing.
“This is Liberation Day,” he told a cheering audience of supporters, while hitting out at foreign “cheaters”.
Follow live: Trump tariffs latest
He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.
Mr Trump said the US has been “looted, pillaged, raped, plundered” by other nations.
Pic: AP
His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.
Mr Trump confirmed the European Union would face a 20% reciprocal tariff on all other imports. China’s rate was set at 34%.
The UK’s rate of 10% was perhaps a shot across the bows over the country’s 20% VAT rate, though the president’s board suggested a 10% tariff imbalance between the two nations.
It was also confirmed that further US tariffs were planned on some individual sectors including semiconductors, pharmaceuticals and critical mineral imports.
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Trump’s tariffs explained
The ramping up of duties promises to be painful for the global economy. Tariffs on steel and aluminium are already in effect.
The UK government signalled there would be no immediate retaliation.
Business and Trade Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.
“The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.
“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
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Who showed up for Trump’s tariff address?
The EU has pledged to retaliate, which is a problem for Northern Ireland.
Should that scenario play out, the region faces the prospect of rising prices because all its imports are tied to EU rules under post-Brexit trading arrangements.
It means US goods shipped to Northern Ireland would be subject to the EU’s reprisals.
The impact of a trade war would be expected to be widely negative, with tit-for-tat tariffs risking job losses, a ramping up of prices and cooling of global trade.
Research for the Institute for Public Policy Research has suggested more than 25,000 direct jobs in the UK car manufacturing industry alone could be at risk from the tariffs on car exports to the US.
The Society of Motor Manufacturers and Traders (SMMT) had said the tariff costs could not be absorbed by manufacturers and may lead to a review of output.
The tariffs now on UK exports pose a big risk to growth and the so-called headroom Chancellor Rachel Reeves was forced to restore to the public finances at the spring statement, risking further spending cuts or tax rises ahead to meet her fiscal rules.
Read more:
What do Trump’s tariffs mean for the UK?
The rewards and risks for US as trade war intensifies
A member of the Office for Budget Responsibility (OBR), David Miles, told MPs on Tuesday that US tariffs at 20% or 25% maintained on the UK for five years would “knock out all the headroom the government currently has”.
But he added that a “very limited tariff war” that the UK stays out of could be “mildly positive”.
He said: “There’s a bit of trade that will get diverted to the UK, and some of the exports from China, for example, that would have gone to the US, they’ll be looking for a home for them in the rest of the world.
“And stuff would be available in the UK a bit cheaper than otherwise would have been. So there is one, not central scenario at all, which is very, very mildly potentially positive to the UK. All the other ones which involve the UK facing tariffs are negative, and they’re negative to very different extents.”
The fast-moving developments on Trump’s Ukraine peace deal are dominating the G20 summit in South Africa, as European leaders scramble to put together a counter-proposal to the US-Russia 28-point plan and reinsert Ukraine into these discussions.
European countries are now working up proposals to put to President Trump ahead of his deadline of Thursday to agree a deal.
Ukraine is in a tight spot. It cannot reject Washington outright – it relies on US military support to continue this war – but neither can it accept the terms of a deal that is acutely favourable to Russia, requiring Ukraine to give up territory not even occupied by Moscow and reducing its army.
Overnight, the UK government has reiterated its position that any deal must deliver a “just and lasting peace”.
Ukraine war latest: Kyiv to discuss ending war in talks in Switzerland
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Keir Starmer calls for growth plan at G20
The prime minister, who spoke with E3 allies President Macron of France, Chancellor Merz of Germany and President Zelenskyy of Ukraine on the phone on Friday, is having more conversations today with key partners as they work out how to handle Trump and improve this deal for Ukraine.
One diplomatic source told me allies are being very careful not to criticise Trump or his approach for fear of exacerbating an already delicate situation.
Instead, the prime minister is directing his attacks at Russia.
Read more:
Trump’s 28-point Ukraine peace plan in full
Analysis: We could all pay if Europe doesn’t guarantee Ukraine’s security
Prime Minister Keir Starmer attends a plenary session on the first day of the G20 Leaders’ Summit. Pic: Reuters
“There is only one country around the G20 table that is not calling for a ceasefire in Ukraine and one country that is deploying a barrage of drones and missiles to destroy livelihoods and murder innocent civilians,” he said on Friday evening.
“Time and again, Russia pretends to be serious about peace, but its actions never live up to its words.”
Pic: AP
On the Trump plan, the prime minister said allies are meetin on Saturday “to discuss the current proposal on the table, and in support of Trump’s push for peace, look at how we can strengthen this plan for the next phase of negotiations”.
Strengthening the plan really means that they want to rebalance it towards Ukraine’s position and make it tougher on Russia.
“Ukraine has been ready to negotiate for months, while Russia has stalled and continued its murderous rampage. That is why we must all work together with both the US and Ukraine, to secure a just and lasting peace once and for all,” said the prime minister.
“We will continue to coordinate closely with Washington and Kyiv to achieve that. However, we cannot simply wait for peace.
“We must strain every sinew to secure it. We must cut off Putin’s finance flows by ending our reliance on Russian gas. It won’t be easy, but it’s the right thing to do.”
Pic: AP
Europeans hadn’t even seen this deal earlier in the week, in a sign that the US is cutting other allies out of negotiations – for now at least.
Starmer and other European leaders want to get to a position where Ukraine and Europe are at least at the table.
There is some discussion about whether European leaders such as Macron and Meloni might travel to Washington to speak to Trump early next week in order to persuade him of the European and Ukrainian perspective, as leaders did last August following the US-Russian summit in Alaska.
But Sky News understands there are no discussions about the PM travelling to Washington next week ahead of the budget.
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