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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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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.

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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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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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Changes needed to fix ‘broken system’, as illegal migration ‘creating division across our country’, says home secretary

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Changes needed to fix 'broken system', as illegal migration 'creating division across our country', says home secretary

Home Secretary Shabana Mahmood has denied that her plans to clamp down on illegal immigration are “racist” – instead describing them as a “moral mission”.

Shabana Mahmood said illegal immigration was causing “huge divides” in the UK, and added: “I do believe we need to act if we are to retain public consent for having an asylum system at all.”

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Speaking on Sunday Morning with Trevor Phillips, Ms Mahmood said the government would set out changes to the asylum system in a bid to reduce the “pull factor” for those arriving in the UK via small boat.

The home secretary has been looking to Denmark for inspiration, where there are tighter rules on family reunions and restrictions on how long refugees can stay.

Measures that are expected to be announced on Monday include changing the rules so that people who are granted asylum in the UK will only be allowed to stay temporarily, and will have their refugee status subject to regular review.

The statutory legal duty to provide asylum seeker support, including housing and weekly allowances, is expected to be revoked.

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Ms Mahmood said such changes were needed to fix the “broken” asylum system.

‘Moral mission’

But asked how she would respond to those who believe the government has been “panicked into a racist immigration policy”, Ms Mahmood said: “I reject that entirely.”

“I am the child of immigrants,” she said. “My parents came to this country legally, in the late 60s and early 70s. This is a moral mission for me.”

Ms Mahmood said she had observed how illegal migration had been “creating division across our country”.

“I can see that it is polarising communities across the country. I can see that it is dividing people and making them estranged from one another. I don’t want to stand back and watch that happen in my country.”

What measures is the home secretary set to announce?

  • Refugee status will become temporary and subject to regular review – with people facing removal as soon as their home countries are deemed safe
  • New safe and legal routes to be introduced for those genuinely fleeing war and persecution
  • Changes to the legal framework that will require judges to prioritise public safety over migrants’ rights to a family life – amid fears that Article 8 of the European Convention on Human Rights has been used to frustrate removals
  • Using facial age estimation technology, a form of AI ,to rapidly assess a person’s age in a bid to deter people who pretend to be children in an attempt to claim asylum
  • Capped work and study routes for refugees will also be created  

Under current UK rules, people who are granted refugee status have it for five years and can then apply for indefinite leave to remain and get on a route to citizenship.

The government has already announced it will change the rules around indefinite leave to remain with a new set of requirements, including how much someone contributes to the UK and higher English language requirements.

The move to impose tighter restrictions have been interpreted as a way for Labour to counter the threat posed by Nigel Farage and Reform UK, which has laid out plans to deport people who already have ILR – which gives people the right to settle, work and study in the UK and even claim benefits, even if they do not then apply to be British citizens.

Ms Mahmood said that highlighting issues in the system did not amount to making “right-wing talking points or fake news” and that the government had a “genuine problem to fix”.

Although Ms Mahmood is seeking to emulate aspects of the Danish asylum system, she is not copying it in full.

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In Denmark, asylum seekers’ access to public housing is restricted in certain areas where there are more than 30% of ethnic minorities, low levels of education and low incomes.

The home secretary said she was not going to “dictate where people live based on percentages”.

Asked if this was one of the measures the UK government may adopt, the home secretary said: “That’s not the sort of country that we are.”

Alongside bringing in measures to mimic Denmark, Ms Mahmood said she would also announce plans to reform the European Convention on Human Rights (ECHR) – aspects of which she said had been used to “frustrate the removal” of those with no right to be in the UK.

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Chris Philp, the shadow home secretary, said Labour’s plans to reduce immigration were merely a “series of gimmicks” while Zia Yusuf, Reform’s head of policy, claimed Ms Mahmood would be blocked from bringing in her plans by her own MPs.

Meanwhile, the SNP have branded the government’s reforms to asylum policy “outrageous”, and have accused Labour of “dancing to Nigel Farage’s tune on immigration”.

The party’s concerns were echoed by the Greens, whose deputy leader Mothin Ali said the furore over the number of people arriving in the UK on small boats was a “very manufactured problem”.

He told Sky News: “To me, it feels like a very manufactured problem. It’s a problem that’s been created to create outrage.”

Max Wilkinson, the Liberal Democrats’ home affairs spokesperson, told Sky News it was “right” that the government was aiming to tackle illegal migration, but said some of the language used had been a “bit uncomfortable”.

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Labour MPs fear wipe out at next local election – as chancellor’s career is ‘toast’

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Labour MPs fear wipe out at next local election - as chancellor's career is 'toast'

Many Labour MPs have been left shellshocked after the chaotic political self-sabotage of the past week.

Bafflement, anger, disappointment, and sheer frustration are all on relatively open display at the circular firing squad which seems to have surrounded the prime minister.

The botched effort to flush out backroom plotters and force Wes Streeting to declare his loyalty ahead of the budget has instead led even previously loyal Starmerites to predict the PM could be forced out of office before the local elections in May.

“We have so many councillors coming up for election across the country,” one says, “and at the moment it looks like they’re going to be wiped out. That’s our base – we just can’t afford to lose them. I like Keir [Starmer] but there’s only a limited window left to turn things around. There’s a real question of urgency.”

Another criticised a “boys club” at No 10 who they claimed have “undermined” the prime minister and “forgotten they’re meant to be serving the British people.”

There’s clearly widespread muttering about what to do next – and even a degree of enviousness at the lack of a regicidal 1922 committee mechanism, as enjoyed by the Tories.

“Leadership speculation is destabilising,” one said. “But there’s really no obvious strategy. Andy Burnham isn’t even an MP. You’d need a stalking horse candidate and we don’t have one. There’s no 1922. It’s very messy.”

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Others are gunning for the chancellor after months of careful pitch-rolling for manifesto-breaching tax rises in the budget were ripped up overnight.

“Her career is toast,” one told me. “Rachel has just lost all credibility. She screwed up on the manifesto. She screwed up on the last two fiscal events, costing the party huge amounts of support and leaving the economy stagnating.

“Having now walked everyone up the mountain of tax rises and made us vote to support them on the opposition day debate two days ago, she’s now worried her job is at risk and has bottled it.

“Talk to any major business or investor and they are holding off investing in the UK until it is clear what the UK’s tax policy is going to be, putting us in a situation where the chancellor is going to have to go through this all over again in six months – which just means no real economic growth for another six months.”

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Why is the economy flatlining?

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After less than 18 months in office, the government is stuck in a political morass largely of its own making.

Treasury sources have belatedly argued that the chancellor’s pre-budget change of heart on income tax is down to better-than-expected economic forecasts from the Office for Budget Responsibility.

That should be a cause of celebration. The question is whether she and the PM are now too damaged to make that case to the country – and rescue their benighted prospects.

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Man charged with murder of 17-year-old girl

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Man charged with murder of 17-year-old girl

A teenager has been charged with murder and attempted murder following the death of a 17-year-old girl, police have said.

Armed police were called to Cefn Fforest in Blackwood, Wales, at around 7.15am on Thursday after being told two people were seriously injured.

Lainie Williams was pronounced dead at the scene, while a second, a 38-year-old woman, who also sustained injuries, has been discharged from hospital.

Gwent Police said 18-year-old Cameron Cheng, a British national from Newbridge, Caerphilly, has also been charged with possession of a bladed article in a public place.

He is remanded to appear before Newport Magistrates’ Court on 17 November.

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Assistant Chief Constable Vicki Townsend said: “We understand that there has been a great deal of interest in this investigation.

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“It is vital that people consider how their language, especially comments made online, could affect our ability to bring anyone found to have committed a criminal offence to justice.

“Even though we’ve reached this significant development in the investigation, our enquiries continue so it is likely that residents will continue to see officers in the area.

“So if anyone has any information, please speak to our officers or contact us in the usual way.”

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