Donald Trump’s baseline tariff of 10% on products from all countries worldwide has taken effect.
The blanket tariff was announced by the US president on Wednesday evening, when his speech on so-called “Liberation Day” sent shockwaves across the global stock market as he unleashed sweeping taxes on imports.
Much higher tariffs against what Mr Trump branded as the “worst offenders”, such as a 20% rate for the EU and a 34% one for China, are set for 9 April.
A 25% tariff imposed on all foreign cars imported into the US came into effect on Thursday.
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1:15
How tariffs have impacted world’s richest men
The baseline tariff came into place as stock markets plummeted amid a trade war sparked by Mr Trump’s radical measures and China’s retaliatory tariffs of 34% on US imports from 10 April.
How markets reacted
The UK’s leading stock market, the FTSE 100, suffered its worst daily drop in more than five years, closing on Friday 4.95% down, a level not seen since March 2020.
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All three of the US’s major indexes, including The Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite, were down by more than 5% at market close on Friday, making for the worst day in American markets since the COVID-19 pandemic.
Ever since the US president announced the tariffs, analysts estimate that around $4.9trn (£3.8trn) has been wiped off the value of the global stock market.
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As stock markets reeled, Mr Trump was largely out of public view at his golf course where he sent multiple defiant social media messages guaranteeing victory for the US economy.
One of his messages on Truth Social read: “Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!”
How has the UK responded?
The UK will be affected by the 10% tariff.
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2:03
How did PM address Trump’s tariffs? Sky’s Beth Rigby explains
Prime Minister Sir Keir Starmer spoke to Australian Prime Minister Anthony Albanese and Italian Premier Giorgia Meloni, Downing Street said.
Issuing a read-out of their separate conversations on Friday, Number 10 said the leaders “all agreed that an all-out trade war would be extremely damaging”.
A spokesperson said the PM “has been clear the UK’s response will be guided by the national interest” and officials will “calmly continue with our preparatory work, rather than rush to retaliate”.
Image: Mr Trump believes the tariffs will ‘supercharge’ the US economy. File pic: Reuters
The spokesperson added: “He discussed this approach with both leaders, acknowledging that while the global economic landscape has shifted this week, it has been clear for a long time that like-minded countries must maintain strong relationships and dialogue to ensure our mutual security and maintain economic stability.”
It is expected Sir Keir will take further calls with international leaders over the weekend.
Experts have predicted that UK economic growth – already expected to amount to just 1% this year – could be up to 0.5 percentage points lower than expected over coming years as a result of the tariffs.
Prince Harry has denied having a fight with Prince Andrew after it was claimed “punches were thrown” between the pair in 2013.
The allegations appeared in excerpts from a new book on the Duke of York being serialised in the Daily Mail.
It claims a row started after Prince Andrew said something behind Harry’s back, with Andrew “left with a bloody nose” and the pair needing to be broken up.
It also claimed the Duke of York once warned his nephew about marrying Meghan and suggested it wouldn’t last long.
However, a spokesperson for the Duke of Sussex strongly denied the claims.
“I can confirm Prince Harryand Prince Andrew have never had a physical fight, nor did Prince Andrew ever make the comments he is alleged to have made about the Duchess of Sussex to Prince Harry,” a statement said.
They said a legal letter had been sent to the Daily Mail due to “gross inaccuracies, damaging and defamatory remarks” in its reporting.
The book – Entitled: The Rise and Fall of the House of York – is billed as the first joint biography of Prince Andrew and ex-wife Sarah Ferguson.
It’s said to be based on interviews with “over a hundred people who have never spoken before”.
He said his brother once knocked him to the floor amid a confrontation over Meghan’s “rude” and “abrasive” behaviour.
“It all happened so fast. So very fast,” Harry wrote in the book.
“He grabbed me by the collar, ripping my necklace, and he knocked me to the floor. I landed on the dog’s bowl, which cracked under my back, the pieces cutting into me.”
“I lay there for a moment, dazed, then got to my feet and told him to get out,” the prince added.
Harry claimed his brother wanted him to hit him back “but I chose not to”, and that William later returned and apologised.
The Duke Of Sussex has described his relationship with his family as extremely strained after he quit as a working royal and took legal action against the media, and over the removal of his UK police protection.
He claimed earlier this year the King wouldn’t speak to him and there had “been so many disagreements between myself and some of my family”.
Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.
The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.
“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.
Image: Pics: PA
Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.
“So up to about a maximum of £950 per car finance deal where you are due compensation.”
Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.
However, the personal finance guru warned against using a claims firm.
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“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.
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1:13
Who’s eligible for payout after car finance scandal?
Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.
The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.
Lewis told Sky News that the consultation will launch in October – and will take six weeks.
“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.
“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”
He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.
The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.
Anyone who has already complained does not need to do anything.
The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now”.
Its website advises drivers to complain to their finance provider first.
If you’re unhappy with the response, you can then contact the Financial Ombudsman.
Any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.
The FCA has warned motorists that doing so could end up costing you 30% of any compensation in fees.
The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.
But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.
The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.