What are Donald Trump’s tariffs, what will happen on ‘liberation day’ and how does it 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.
But along the way, there have been threats, pauses and postponements.
His latest move was to announce a 25% tariff on all cars imported to the US.
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.
In his second term, Mr Trump has frequently used them – or the threat of them – as a trade weapon.
They 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.
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Could Trump spark a trade war?
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 the smuggling of the synthetic opioid fentanyl to the US.
What is liberation day?
Mr Trump has branded 2 April “liberation day”, when he could unveil 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.
Mr Trump has said he “may give a lot of countries breaks, but it’s reciprocal”, adding: “We might be even nicer than that.”
But he said additional tariffs are coming, including on lumber and semiconductor chips, and has previously promised tariffs on pharmaceuticals.
He has also threatened to impose 25% tariffs on any country that buys Venezuelan oil.
The latest car tariff is also due to come into force on 2 April.
What does the car tariff mean?
The car tariff would mean all cars imported into the US face a 25% tax.
It is the importers that buy the goods who pay the tariffs – therefore, American companies.
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 it makes their products pricier and harder to sell.
A similar tariff on car parts is 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.
How will the car tariff affect the UK – and is it planning to negotiate a trade deal?
The tariff could have a huge impact on the UK’s car industry, including manufacturers such as Jaguar Land Rover, Aston Martin and Rolls-Royce.
Official data shows that 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.
The UK government has signalled it would not retaliate with a reciprocal tariff – despite pleas from British manufacturers to avoid the tariffs.
While Chancellor Rachel Reeves condemned the move, she told Sky’s Wilfred Frost: “We’re not at the moment in a position where we want to do anything to escalate these trade wars.”
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‘UK does not want a trade war with US’
Sky News understands the UK government is continuing to engage with the US on a trade deal and remains hopeful an agreement could be made before the tariffs come into force, but may retaliate if deemed necessary at a later date.
Ms Reeves seemingly alluded to the negotiations when she spoke to Sky News after the car tariff announcement.
“Trade wars are no good for anyone,” she said.
“It will end up with higher prices for consumers pushing up inflation after we’ve worked so hard to get a grip of inflation, and at the same time, will make it harder for British companies to export.
“So look, we are looking to secure a better trading relationship with the United States. I recognise that the week ahead is important.
“There are further talks going on today, so let’s see where we get to in the next few days.”
Mr Trump has not explicitly said that 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.
What has the reaction been around the world?
There was swift condemnation of the car tariffs, especially from countries worst affected including Mexico, Canada, South Korea and Germany.
Listed European car and car parts manufacturers saw further steep declines in their share prices in trading after the plans were announced.
Canadian Prime Minister Mark Carney called it a “direct attack” on Canadian workers.
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Canadian PM: ‘Tariffs are an attack’
Even Trump advisor Elon Musk, the Tesla boss, admitted in a post on his X platform that the hit to his company would be “significant”.
“Important to note that Tesla is NOT unscathed here. The tariff impact on Tesla is still significant,” he wrote.
Which tariffs are already in place?
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 steel and aluminium tariffs are designed to protect US manufacturing and bolster jobs by making foreign-made products less attractive.
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.
They are now paused until “liberation day”.
The pause does not fully cover a tariff of 10% on Canadian energy products.
What was the global response to steel and aluminium tariffs?
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.
Canada’s finance minister also announced 25% retaliatory tariffs on US goods worth C$29.8bn (£16bn) that came into effect on the morning of 13 March.
The tariffs include steel products worth C$12.6bn (£6.8bn) and aluminium products worth C$3bn (£1.6bn) as well as computers, sports equipment and cast iron goods.
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Trump’s tariffs are ‘disappointing’
How did the UK respond to metal tariffs?
Sir Keir Starmer said he was “disappointed” by the global tariffs, but neither he nor Business Secretary Jonathan Reynolds would commit to an immediate retaliation, with discussions over a wider trade deal ongoing.
While the UK metal 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.
Read more on tariffs:
It may be harder for the UK to trump metals tariffs
‘Canadianos’ and cancelled Vegas trips: How Canadians are acting with defiance
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.
US
Democrat Cory Booker rails against Donald Trump and Elon Musk during marathon Senate speech lasting more than 17 hours
A senior Democrat has taken to the Senate floor to speak against US President Donald Trump – with the 17-plus-hour speech still ongoing.
Cory Booker, a New Jersey senator, began speaking around 7pm (midnight in the UK) and said he intended to disrupt the “normal business of the United States Senate for as long as I am physically able”.
Referring to Mr Trump’s presidency, he said: “I rise tonight because I believe sincerely that our country is in crisis.”
As of 5pm in the UK, Mr Booker was still speaking, having spoken for more than 17 hours. He has remained standing for the entire duration, as he would lose control of the floor if he left his desk or sat down.
Read more: Who is the Democrat making a marathon speech against Trump?
As of 4pm, Cory Booker has held the Senate floor for more than 16 hours. Pic: Senate Television / AP
Other Democrat senators have joined Mr Booker to ask questions so he can rest his voice, including Senate minority leader Chuck Schumer.
At the start of his speech, Mr Booker said: “These are not normal times in our nation. And they should not be treated as such in the United States Senate.
“The threats to the American people and American democracy are grave and urgent, and we all must do more to stand against them.”
Overnight, he referenced Strom Thurmond of South Carolina, who filibustered for 24 hours and 18 minutes against the Civil Rights Act of 1957.
Read more:
‘Liberation day’ is coming – one number to keep in mind
Prosecutors directed to seek death penalty for Luigi Mangione
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“You think we got civil rights one day because Strom Thurmond – after filibustering for 24 hours – you think we got civil rights because he came to the floor one day and said ‘I’ve seen the light’,” he said.
“No, we got civil rights because people marched for it, sweat for it and [civil rights leader] John Lewis bled for it.”
Only Mr Thurmond and Republican Senator Ted Cruz – who spoke for 21 hours and 19 minutes against the Affordable Care Act in 2013 – have held the Senate floor for longer than Mr Booker.
Luigi Mangione could face the death penalty over the killing of UnitedHealthcare boss Brian Thompson.
The 26-year-old has pleaded not guilty to New York state charges of murder as an act of terrorism and weapons offenses.
New York does not have the death penalty for state charges, and so he could face life in prison without parole if convicted in that case.
But he also faces federal charges over Mr Thompson’s killing – and US attorney general Pamela Bondi has directed federal prosecutors to seek the death penalty.
Mangione has not yet been asked to enter a plea to the federal charges.
Here’s what we know about him.
Wealth, private school and Ivy League education
Mangione was born and raised in Maryland and has links to San Francisco and Hawaii.
His social media lists him as being from Towson, a well-to-do area to the north of the city of Baltimore.
He is the grandson of a wealthy property developer and philanthropist and the cousin of a current Maryland state legislator.
He attended Gilman School – a private all-boys school in Baltimore. The school’s annual fees are up to $37,690 (around £29,000) and it boasts alumni including NFL stars and former senators.
After graduating in 2016, Mangione went to the University of Pennsylvania, one of America’s elite Ivy League schools.
According to his social media, he studied computer science and launched a group named UPGRADE (UPenn Game Research and Development Environment).
A university spokesperson said he earned undergraduate and graduate degrees there.
He later co-founded his own computer game company, which focused on small, simplistic games.
Mangione went to a prestigious Ivy League university. Pic: LinkedIn
‘No complaints – a great guy’
According to his LinkedIn page, Mangione moved to California in 2020 and worked for the car-buying website TrueCar. The firm’s boss said he left last year.
Mangione currently lists himself as from Honolulu on LinkedIn, with pictures on Instagram showing him on the Hawaiian island.
In the first half of 2022, he reportedly lived at Surfbreak, a co-living space aimed at remote workers in Honolulu’s Waikiki neighbourhood.
“Luigi was just widely considered to be a great guy. There were no complaints,” Josiah Ryan, a spokesperson for Surfbreak’s owner, told the AP news agency.
“There was no sign that might point to these alleged crimes they’re saying he committed.”
Mr Ryan said Mangione left to get surgery on the US mainland for chronic back pain he suffered from since childhood.
Document reveals back condition
Mangione wrote about his health issue online, saying he has spondylolisthesis – a condition where one of the bones in the spine slips forwards.
Sky News’ Data and Forensics team obtained a 14-page document uploaded to his Google Drive account in 2021.
He details the severity of his “injury” as “low grade two” and goes into fitness goals, diet advice and notes about the condition.
The suspect’s notes say he has back condition spondylolisthesis
His X banner image shows a back X-ray
It’s unclear if the condition is linked to the motive, which police have not publicly identified, but it gives context about his health issues.
Analysis of his Goodreads profile also shows he read books including Crooked: Outwitting The Back Pain Industry and Getting On The Road To Recovery, and Why We Get Sick: The Hidden Epidemic At The Root Of Most Chronic Disease – And How To Fight It.
A banner image on his X account also features an X-ray of a lower back with screws.
Law enforcement officials told NBC News they are looking at whether the X-ray is Mangione’s or from a relative and whether it’s connected to the shooting.
‘Violence is necessary to survive’
Mangione appears to have had an active social media presence.
His X account regularly shared and reposted pieces about topics such as artificial intelligence (AI), philosophy, and the future of humanity.
His Goodreads account also gave a four-star review to Industrial Society And Its Future – by notorious US terrorist Theodore Kaczynski.
The piece, which rails against technological advancement, became known as the Unabomber Manifesto after its author began a mail bombing campaign which lasted nearly 20 years.
Three people were killed and dozens were injured before Kaczynski’s arrest in 1996.
The Goodreads review said: “When all other forms of communication fail, violence is necessary to survive. You may not like his methods, but to see things from his perspective, it’s not terrorism, it’s war and revolution.
“‘Violence never solved anything’ is a statement uttered by cowards and predators.”
Luigi Mangione. Pic: Facebook
Why are some calling Mangione a ‘hero’?
A search of social media sites such as Reddit reveals a thread of people who are sympathetic to the suspect.
Highly rated comments on the site include: “Screw the McDonald’s employee that ratted him out” and “Only a matter of time till shirts with #FreeLuigi start popping up”.
To many, these are shocking comments about someone accused of carrying out a cold-blooded killing. But what’s behind them?
Many in the US pay thousands in expensive insurance premiums to cover themselves and their family, while others rely on the Medicare federal insurance programme.
Support for Mangione appears to come from resentment over this and accusations that companies go to great lengths to avoid paying for treatments in order to maximise their profits.
“He got charged with murder quicker than insurance companies deny claims”, said a comment on Reddit with nearly 7,000 likes.
One post that went viral on X before the suspect’s arrest was from Anthony Zenkus, a Columbia University professor.
He wrote: “We mourn the deaths of the 68,000 Americans who needlessly die each year so that insurance company execs like Brian Thompson can become multimillionaires.”
Read more from Sky News:
Shooting prompts US healthcare debate
Police shared this picture of the suspect following the shooting. Pic: NYPD
A chart shared widely on X claims to show denial rates by UnitedHealthcare exceed those of competitors, using data from consumer finance website ValuePenguin. This is consistent with publicly available data from 2023 analysed by Sky News.
Other people online appear to be angry about what they say is the disparity between the resources put into Mr Thompson’s case and how less well-off people are treated.
One comment on Reddit with 4,000 likes says: “The murdered guy in death, like in life, is still sucking up a huge undeserved and unwanted portion of resources.
“How many underprivileged people’s murders are going unsolved because NYPD and the feds are spending millions on this overpaid, rich, morally questionable millionaire’s murder.”
Arrested in McDonald’s with ‘ghost gun’
Mangione was detained in a Pennsylvania McDonald’s after a five-day search, carrying a gun that matched the one used in the shooting and a fake ID, police said.
He was arrested in Altoona, around 230 miles (370km) west of New York, after a tip-off from a McDonald’s employee who recognised him from the police appeals.
Mangione also had a fake New Jersey ID matching one used by the suspect to check into a hostel before the killing, said New York police commissioner Jessica Tisch.
He was found carrying a “handwritten document” that Ms Tisch said “spoke to both his motivation and mindset”.
Joseph Kenny, New York’s chief of detectives, said it appeared to show “some ill-will towards corporate America”.
Pennsylvania prosecutor Peter Weeks said Mangione was found with a passport and $10,000 (£7,840) – $2,000 of it in foreign currency.
‘Message’ on bullets
Brian Thompson, 50, was chief executive of UnitedHealthcare – the fourth-largest public company in the US behind Walmart, Amazon, and Apple – and was paid about $10m (£7.8m) a year.
It’s the largest provider of Medicare Advantage plans and manages insurance for employers and state and federally funded programmes.
Mr Thompson – who was married with two sons – was shot on 4 December as he was walking to a New York hotel where his company was holding an investors’ conference.
CCTV showed a person shooting Mr Thompson from behind. Pic: NYPD/Reuters
As Mr Thompson walked towards the Hilton hotel on Sixth Avenue, a gunman appeared behind him from between parked cars.
He was shot in the back and calf and died from his injuries.
The words “defend”, “deny”, and “depose” were written on the cases of bullets found at the scene – similar to the title of a book that criticises health insurance companies.
Mr Thompson’s wife said he was an “incredibly loving father to our two sons” and a “loving, generous, talented man who truly lived life to the fullest”.
UnitedHealthcare called him a “highly respected colleague and friend to all who worked with him”.
US
Who is Cory Booker? The Democrat making a marathon speech against Trump (and why it’s not a filibuster)
A Democratic senator is delivering a marathon speech in the US Senate in protest against Donald Trump.
Cory Booker, 55, took to the floor at 7pm local time on Monday (midnight in the UK), saying he would remain there as long as he was “physically able”.
As of 5pm in the UK, Mr Booker was still going – more than 17 hours after he started.
The senator for New Jersey said his goal is to “uplift the stories of Americans who are being harmed by the Trump administration’s reckless actions, attempts to undermine our institutions, and disregard for the rule of law”.
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During his speech, Mr Booker has only taken brief breaks from speaking, giving the floor instead to questions from his Democratic colleagues, according to Sky News’ US partner network, NBC News.
According to the rules of the Senate, as long as he stays at the podium Mr Booker will hold the floor – meaning he cannot leave at any point, even to go to the toilet or to eat.
So who exactly is the Democratic senator, and what is his multi-hour speech all about?
Mr Booker has criticised the Trump administration during his speech. Pic: Senate Television via AP
Rising star of Democratic Party
Mr Booker was born in Washington DC and moved to northern New Jersey when he was a boy.
He is a graduate of Stanford University and Yale Law and started his career as a lawyer for charities.
Entering politics, he was considered a rising star in the Democratic Party. He was elected to serve on the city council of New Jersey’s biggest state, Newark, and then as mayor, a position he held until 2013.
He was first elected to the US Senate in 2013 during a special election held after the death of politician and businessman Frank Lautenberg.
He went on to win his first full term in 2014 and was re-elected in 2020.
2020 presidential bid
In February 2019 Mr Booker launched his bid for the US presidency from the steps of his home in Newark.
At the time, he played on his personal ties to the “low-income, inner city community” and urged for the US to return to a “common sense of purpose”.
He later dropped out of the race after struggling to raise the money required to make a bid for the White House.
Senator Cory Booker. Pic: AP
Why is he speaking in the Senate?
By holding the floor in the Senate, Mr Booker is protesting against the Trump administration.
Before he began, the senator said he had the intention of “getting in some good trouble”, NBC News reported.
He read letters from constituents about how Mr Trump’s cuts were already taking a toll on their lives.
He claimed the US was giving up being a global leader, citing Mr Trump’s proposals to take over Greenland and Canada while feuding with longtime allies.
He also occasionally took aim at Elon Musk, the richest person in the world, who is advising Mr Trump and leading the Department of Government Efficiency (DOGE).
“In just 71 days, the president of the United States has inflicted so much harm on Americans’ safety; financial stability; the core foundations of our democracy,” Mr Booker said on the floor.
“These are not normal times in America. And they should not be treated as such in the United States Senate.”
Appearing to waver slightly on Tuesday morning, Mr Booker was accompanied by Senator Chris Murphy. In 2016, Mr Booker joined the Connecticut Democrat when he held the floor for almost 15 hours to argue for gun control legislation.
Read more:
Could Donald Trump run for a third term?
Why he is not a filibuster
Some reports have referred to Mr Booker’s speech as a filibuster, but technically it is not.
A filibuster is a speech meant to halt the advance of a specific piece of legislation.
Mr Booker’s performance is instead a broader critique of Mr Trump’s agenda, meant to hold up any business scheduled to take place in the Senate and draw attention to what Democrats are doing to contest the president.
Democrats have been forced to use these types of opposition methods as they do not hold a majority in either congressional chamber.
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