Donald Trump slapped a 10 per cent tariff on US imports of UK goods as he set out sweeping trade levies hitting countries across the world.
The US president said his “liberation day” announcement was a “declaration of economic independence”.
Mr Trump confirmed that from 5am on Thursday a 25 per cent tariff would be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.
And he indicated tariffs of 10 per cent would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world.
Other blocs with higher tariffs on US goods were hit with tougher import taxes, including 20 per cent for the European Union.
Sir Keir Starmer’s government hopes to strike an economic deal with the White House which will mitigate the impacts. But chancellor Rachel Reeves acknowledged the UK would not be “out of the woods” even if a deal could be reached.
Mr Trump predicted “foreign presidents, prime ministers, kings, queens, ambassadors and everyone else” would soon be calling him to ask for exemptions from the tariffs.
Key points
- Watch: Trump's Rose Garden speech
- The full list of reciprocal tariffs that Trump announced
- UK faces new 10% tariffs
- Trump confirms 25% cars tariff
Asian stock markets plummet in aftermath of Trump tariffs announcement
04:28
,
Alisha Rahaman Sarkar
Stock markets across Asia fell on Thursday morning at the opening after US president Donald Trump announced sweeping new tariffs on imports.
Tokyo’s Nikkei 225 dropped as much as 4 per cent in early trade before partially recovering to close 2.9 per cent lower at 34,675.97 on Thursday. South Korea’s Kospi slipped 1.5 per cent, while Hong Kong’s Hang Seng fell 1.4 per cent.
The Shanghai Composite dipped slightly by less than 0.1 per cent, and Australia’s ASX 200 was down 1.3 per cent.
Stuti Mishra has more.
Donald Trump slaps 26% tariff on India
04:12
,
Alisha Rahaman Sarkar
US president Donald Trump announced a 26 per cent tariff on India despite New Delhi's aggressive efforts to avoid his wrath.
Mr Trump unveiled the tariffs late on Wednesday, calling them “discounted" and "reciprocal".
They include a universal rate of 10 per cent for all countries and territories, rising higher for those he deems as charging too much on American goods.
“The United States charges other countries only a 2.4 per cent tariff on motorcycles. Meanwhile, Thailand and others are charging much higher rates, like 60 per cent.
India charges 70 per cent, Vietnam charges 75 per cent, and others charge even higher rates,” he said yesterday.
India had sought to avoid a trade war with its biggest trading partner by already imposing pre-emptive tariff cuts before prime minister Narendra Modi's recent visit to the White House.
Two-way trade exceeded $118bn in fiscal 2023-2024, with India posting a surplus of $32bn.
“India, very, very tough. Very, very tough. The prime minister just left. He’s a great friend of mine, but I said, ‘You’re a friend of mine, but you’re not treating us right," Mr Trump said.
"They charge us 52 per cent. You have to understand, we charge them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China'," he added.
The Indian commerce ministry has already reduced levies on heavyweight bikes with engines above 1,600cc from 50 per cent to 30 per cent and on smaller models to 40 per cent, complying with the American president's longstanding demand.
China urges Trump to immediately cancel tariffs
03:59
,
Alisha Rahaman Sarkar
China's commerce ministry has urged the US to immediately cancel unilateral tariff measures and properly resolve differences with trading partners through equal dialogue.
"Many trading partners have expressed strong dissatisfaction and clear opposition," the ministry said in a statement this morning. China firmly opposes this and will resolutely take countermeasures to safeguard its rights and interests, it said.
President Donald Trump announced yesterday that he would impose a 10 per cent baseline tariff on all imports to the US and higher duties on dozens of other countries. The tariffs will take effect on 9 April.
Chinese imports will be hit with a 34 per cent tariff, on top of the 20 per cent he previously imposed, bringing the total new levy to 54 per cent.
Analysis: Trouble ahead if Starmer fails to have UK tariff lifted
03:00
,
Jane Dalton
The prime minister will face some brickbats for failing to win a carve-out from tariffs with what many see as a fawning approach to Donald Trump, writes David Maddox, The Independent’s political editor.
But as the world digests the stunning news of reciprocal tariffs unleashed around the globe, Sir Keir Starmer can take some satisfaction from his work and have hope that for the UK at least there is a quick resolution to this nightmare.
As Downing Street was quick to point out, the 10 per cent minimum tariff being imposed on the UK is much better than others, most notably the EU. This literally is the difference between saving and losing many thousands of jobs.
There have been positive noises from Downing Street that despite issues around free speech concerns from the US, the UK and America are close to a trade deal which would even see these tariffs go away.
There is though a very much wait-and-see on that.
So while Starmer and his ministers can take some satisfaction now from their efforts there is still a lot of work ahead and high stakes. These tariffs wipe out the chancellor Rachel Reeves’ economic headroom.
A failure to get rid of them will leave the UK government in a lot of trouble.
EU manufacturers urged to move to UK
02:30
,
Jane Dalton
At least one Brexiteer has suggested European manufacturers move their businesses to the UK to benefit from the lower 10% tariff than the 20% in the EU.
Dear European Manufacturers.
— Gully Foyle #UKTrade (@TerraOrBust) April 2, 2025
Want to reduce your 20% tariff on your US exports down to just 10%, or perhaps even removing it completely?
Move your manufacturing to the UK. Job done. pic.twitter.com/MozkWc5jUv
Tariffs will drive up prices globally, warns Chambers of Commerce
02:00
,
Jane Dalton
The head of the British Chambers of Commerce says the new tariffs will wreak havoc on business communities globally, driving up prices, but that retaliatory tariffs should be only a last resort.
Shevaun Haviland, director general, said: “The Government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.
“But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on business communities across the world. Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.
“So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.
“The UK is not without influence, our bilateral trade with the US is worth £300 billion, we have £500 billion invested there and it has £700 billion tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for Government to consider.”
She said decisions on taxes would need to be taken very carefully, and the government should keep everything on the table during talks, but retaliatory tariffs should only be a last resort.
“Many firms, especially SMEs, will now be facing difficult decisions and we urge government to do all it can to provide practical support to them.”
How Trump’s tariff plan will work
01:30
,
Jane Dalton
No escape for UK as Trump targets ‘foreign cheaters' in new global trade war
01:00
,
Jane Dalton
Trump claims US industry ‘reborn’ – full report
Thursday 3 April 2025 00:28
,
Jane Dalton
Trade war would weaken West, warns Italian PM
Wednesday 2 April 2025 23:58
,
Jane Dalton
Italian prime minister Giorgia Meloni said Mr Trump’s new tariffs were wrong, and that she hoped to work with the US and Europe to avoid a trade war that would weaken the West.
Lower levy saving thousands of jobs, No 10 says
Wednesday 2 April 2025 23:32
,
Jane Dalton
The prime minister’s office hinted at relief that the announcement wasn’t worse.
A Downing Street source said: "We don't want any tariffs at all, but a lower levy than others vindicates our approach.
"It matters because the difference between 10% and 20% is thousands of jobs.
"We will keep negotiating, keep cool and keep calm. We want to negotiate a sustainable trade deal, and of course to get tariffs lowered. Tomorrow we will continue with that work."
No immediate retaliatory measures are expected from the government as it focuses on trying to strike the hoped-for economic deal with the US.
But experts say more than 25,000 UK car manufacturing jobs could be at risk from the 25% tariff on cars.
Irish leader hits out at tariffs
Wednesday 2 April 2025 23:10
,
Jane Dalton
There is "no justification" for US tariffs that will hit Ireland, Irish premier Micheal Martin said.
The Taoiseach said: "Ireland believes in open and free trade and that the imposition of tariffs is bad for the world economy. I deeply regret the US decision to impose 20% tariffs on imports from across the European Union. We see no justification for this."
Mr Martin said: "Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one's interests."
UK Steel calls for help in 'crisis'
Wednesday 2 April 2025 22:52
,
Jane Dalton
UK Steel has called for a significant intervention to help the industry out of a “crisis”.
Director general Gareth Stace said: “Three weeks ago, President Trump delivered a cataclysmic strike to UK steel exports for US manufacturers.
“The new 10% tariffs, stacked on top of the existing 25% levies, are not only sticking the knife in again, but this time turning it in the wound for maximum effect.
“The UK Government must continue its efforts to strike a deal with the US, but we recognise that this requires willingness from both sides...
“We cannot afford to wait any longer as our exports are being damaged, and our market is being undercut by rising imports. UK Steel has warned that the steel crisis has been deepening for some time and bold, decisive and significant interventions are needed now.”
Brexit spared UK from worse, says Tory trade spokesman
Wednesday 2 April 2025 22:28
,
Jane Dalton
Shadow trade secretary Andrew Griffith has described the tariff announcement as “disappointing news” and suggested that Brexit spared the UK from higher import taxes.
He called on the government to agree a “fair” deal with the US for the benefit of businesses and consumers, saying: “This is disappointing news which will worry working families across the country...
“The Chancellor’s emergency budget of just a week ago with its inadequate headroom is now at risk, casting uncertainty about more taxes or spending cuts. Sadly, it is British businesses and workers who will pay the price for Labour’s failure.”
He added: “The silver lining is that Brexit, which Labour ministers voted against no less than 48 times, means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.”
The silver lining is that Brexit - which Labour ministers voted against 48 times - means we face far lower tariffs than the EU: a Brexit dividend protecting thousands of British jobs and businesses.
— Andrew Griffith MP (@griffitha) April 2, 2025
Analysis: Sir Keir Starmer’s handling of Trump has been vindicated (so far!)
Wednesday 2 April 2025 22:28
,
Barney Davis
The prime minister will face some brickbats for failing to win a carve out from tariffs with what many see as a fawning approach to Donald Trump and his rightwing White House administration.
But as the world digests the stunning news of reciprocal tariffs unleashed around the globe, Sir Keir Starmer can take some satisfaction from his work and have hope that for the UK at least there is a quick resolution to this nightmare.
As Downing Street was quick to point out, the 10 per cent minimum tariff being imposed on the UK is much better than others, most notably the EU. This literally is the difference between saving and losing many thousands of jobs.
There have been positive noises from Downing Street that despite issues around free speech concerns from the US, the UK and America are close to a trade deal which would even see these tariffs go away.
There is though a very much wait and see on that.
So while Starmer and his ministers can take some satisfaction now from their efforts there is still a lot of work ahead and high stakes. These tariffs wipe out the chancellor Rachel Reeves’ economic headroom.
A failure to get rid of them will leave the UK government in a lot of trouble.
Trump pushing up costs to UK buyers, says car industry chief
Wednesday 2 April 2025 22:25
The Society of Motor Manufacturers and Traders branded the new tariffs “deeply disappointing”.
Mike Hawes, chief executive, said: “The announced imposition of a 10% tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure.
“Our cars were already set to attract a punitive 25% tariff overnight and other automotive products are now set to be impacted immediately. While we hope a deal between the UK and US can still be negotiated, this is yet another challenge to a sector already facing multiple headwinds.
“These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.
“Trade discussions must continue at pace, therefore, and we urge all parties to continue to negotiate and deliver solutions which support jobs, consumer demand and economic growth across both sides of the Atlantic.”
We're committed to doing deal with ally, minister pledges
Wednesday 2 April 2025 22:22
,
Jane Dalton
Business secretary Jonathan Reynolds said the United States was “our closest ally” and the government would “remain calm and committed” to doing a deal to mitigate the impact of the tariffs announced by Donald Trump.
Tariffs 'devastating' for UK exporters
Wednesday 2 April 2025 22:20
,
Jane Dalton
UK manufacturing body Make UK reportedly says the 10% tariffs will be "devastating" for British exporters.
UK manufacturing body Make UK says the 10% tariffs will be "devastating" for British exporters. Stephen Phipson, CEO, says the 10% tariff is "highly disappointing" given the balanced trade relationship between the two countries. pic.twitter.com/i48SuXt3yP
— Lisa O'Carroll (@lisaocarroll) April 2, 2025
Watch: Trump announces tariffs on Britain
Wednesday 2 April 2025 22:07
,
Jane Dalton
Davey calls for UK and partners to retaliate
Wednesday 2 April 2025 22:06
,
Jane Dalton
Sir Ed Davey has called for the UK and EU to retaliate, accusing Donald Trump of launching a destructive trade war.
The Liberal Democrat leader said: “We need to end this trade war as quickly as possible – and that means standing firm with our allies against Trump’s attempts to divide and rule.
“The Prime Minister should bring our Commonwealth and European partners together in a coalition of the willing against Trump’s tariffs, using retaliatory tariffs where necessary and signing new trade deals with each other where possible.
“If the Government gives in to Trump’s threats, it will only encourage him to use the same bullying tactics again and again.”
Scotch whisky chiefs 'disappointed'
Wednesday 2 April 2025 22:04
,
Jane Dalton
A spokesman for the Scotch Whisky Association said: “The industry is disappointed that Scotch whisky could be impacted by these tariffs.
“We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”
The US is a key export market for Scotch whisky producers, who will now face having their drink become more expensive for consumers across the Atlantic.
CBI warns of significant global effects
Wednesday 2 April 2025 22:03
,
Jane Dalton
The Confederation of British Industry (CBI) said UK businesses needed a “measured and proportionate approach” to Donald Trump’s announcement of tariffs.
Rain Newton-Smith, chief executive of the CBI, said: “Business has been clear: there are no winners in a trade war. Today’s announcements are deeply troubling for businesses and will have significant ramifications around the world.
“A cool and calm reaction from the UK government is the right response: UK firms need a measured and proportionate approach which avoids further escalation. Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices.”
New UK tariff branded 'major blow' to small businesses
Wednesday 2 April 2025 22:00
,
Jane Dalton
Donald Trump’s 10% tariff on imports from the UK will deal a major blow to small and medium businesses, an influential trade group has warned.
Currently, 59% of small UK exporters sell into the US market, the Federation of Small Businesses (FSB) said.
“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” Tina McKenzie, the FSB’s policy chair said.
“The fallout will stifle growth, hurt opportunities, and put a serious dent in the global economy.
“The UK Government should now be ready to provide emergency assistance to any SMEs at risk of collapse.”
The full list of reciprocal tariffs that Trump announced
Wednesday 2 April 2025 21:58
,
Barney Davis
1. China: 34%
2. European Union: 20%
3. South Korea: 25%
4. India: 26%
5. Vietnam: 46%
6. Taiwan: 32%
7. Japan: 24%
8. Thailand: 36%
9. Switzerland: 31%
10. Indonesia: 32%
11. Malaysia: 24%
12. Cambodia: 49%
13. United Kingdom: 10%
14. South Africa: 30%
15. Brazil: 10%
16. Bangladesh: 37%
17. Singapore: 10%
18. Israel: 17%
19. Philippines: 17%
20. Chile: 10%
21. Australia: 10%
22. Pakistan: 29%
23. Turkey: 10%
24. Sri Lanka: 44%
25. Colombia: 10%
Trump signs executive order after speech
Wednesday 2 April 2025 21:57
,
Jane Dalton
President Trump signed an executive order introducing the tariffs after a speech that lasted nearly an hour.
Chlorinated chicken: Trump bemoans EU ban
Wednesday 2 April 2025 21:49
,
Jane Dalton
Donald Trump complained the UK and EU refuse to import US chicken but failed to mention the birds are reared to such appalling standards that they have to be doused in chlorine in an attempt to kill bacteria:
Watch: Trump blasts EU for banning American chickens
Wednesday 2 April 2025 21:45
'Presidents, kings and prime ministers will come calling'
Wednesday 2 April 2025 21:36
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Jane Dalton
Donald Trump predicted foreign presidents, prime ministers, kings, queens, ambassadors “and everyone else” will soon be calling him to ask for exemptions from the new tariffs.
He said he would tell them to terminate their own tariffs, drop their barriers, and not to manipulate their currencies.
“They manipulate their currencies like nobody can even believe, which is a bad, bad thing and very devastating to us,” he said.
UK faces new 10% tariffs
Wednesday 2 April 2025 21:31
,
Jane Dalton
The UK will face tariffs of 10% - the same as Britain charges the US, a chart held up by President Trump reveals.
It’s one of only a handful of countries set to have identical duties imposed as they charge American businesses.
EU faces 20% tariffs, Trump announces
Wednesday 2 April 2025 21:28
,
Jane Dalton
Donald Trump claimed the US was being kind by charging other nations roughly half of what they charge.
Slamming the EU as “pathetic”, charging the US 39%, will now face 20% tariffs, he announced.
China, which charges 67% would now be charged 34%.
President bemoans farm produce duties
Wednesday 2 April 2025 21:23
,
Jane Dalton
The US president drew attention to duties other nations charge on dairy and other animal produce, saying Canada imposed a 250% to 300% tariff on many dairy products.
“They do the first little carton of milk at a very low price. But after that it gets bad, and then it gets up to 275%-300%,” he said.
It's not fair to US farmers, he said.
“We subsidise a lot of countries and keep them going and keep them in business. In the case of Mexico, it's $300 billion a year. In the case of Canada, it's close to $200 billion a year... and we're really not taking it any more through non tariff barriers.
“The European Union bans imports of most American poultry. You understand they say we want to send you our cars. We want to send you everything, but we're not going to take anything that you have.
“Australia bans and the wonderful people and wonderful everything, but they banned American beef. Yet, we imported $3 billion of Australian beef from them just last year alone. They won't take any of our beef. They don't want it because they don't want it to affect their farmers and you know what I don't blame them, but we're doing the same thing.”
Trump confirms 25% cars tariff
Wednesday 2 April 2025 21:16
,
Jane Dalton
President Trump has confirmed a 25 per cent tariff on all foreign imported cars.
He highlighted other tariffs other countries charge, saying: “The United States charges other countries only a 2.4 tariff on motorcycles.
“Meanwhile, Thailand and others are charging much higher prices, like 60% –India charges 70%, Vietnam charges 75%, and others are even higher than that.
“Likewise, until today, the United States has for decades, charged a 2.5% tariff. Think of that - 2.5% on foreign made automobiles.”
It's our turn to prosper and cut taxes, Trump claims
Wednesday 2 April 2025 21:11
,
Jane Dalton
Mr Trump said it was America’s turn to prosper after he signs an executive order introducing global tariffs.
He said: “This is one of the most important days, in my opinion, in American history. It's our declaration of economic independence.
“For years, hard-working American citizens were forced to sit on the sidelines, as other nations got rich and powerful, much of it at our expense, but now it's our turn to prosper, and in so doing, use trillions and trillions of dollars to reduce our taxes and pay down our national debt.
“And it all happened very quickly, with today's action, we are finally going to be able to make America great again, greater than ever.”
'Let's make America wealthy again'
Wednesday 2 April 2025 21:09
Mr Trump began his long- anticipated speech on tariffs by saying: “April 2 2025, will forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again, going to make it wealthy, good and wealthy.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.”
Watch: Trump's Rose Garden speech
Wednesday 2 April 2025 21:05
,
Jane Dalton
President Trump’s announcement will be streamed live on The Independent’s YouTube channel:
Let's put tariffs on Teslas, says Davey
Wednesday 2 April 2025 20:52
,
Jane Dalton
Lib Dem leader Ed Davey called for the UK to impose tariffs on Tesla cars, made by Elon Musk’s company.
“Let’s put tariffs on Teslas and the tech bros,” he told Channel 4 News, calling for an economic coalition with European and Commonwealth partners to defend free trade.
Editorial: Stand up to Trump, prime minister
Wednesday 2 April 2025 20:40
,
Jane Dalton
In case you missed it at the weekend:
Opinion: My British tech firm could be a big ‘Liberation Day’ loser
Wednesday 2 April 2025 20:20
,
Jane Dalton
Car imports to US face 25% duties within hours
Wednesday 2 April 2025 20:00
,
Jane Dalton
The US government has said it will impose 25 per cent tariffs on automobile imports tomorrow, Thursday, and a similar duty on auto parts a month later.
Watch: The effect of tariffs on the UK
Wednesday 2 April 2025 19:47
,
Jane Dalton
Trump ‘Liberation Day’ live
Wednesday 2 April 2025 19:20
,
Jane Dalton
As well as live updates here tonight, you can follow live coverage of the tariffs announcement on our US blog here.
Everything you need to know about Trump tariffs
Wednesday 2 April 2025 19:05
,
Jane Dalton
Analysis: How Trump tariffs might hit UK business
Wednesday 2 April 2025 18:47
,
Jane Dalton
Watch: UK entering difficult period, minister warns
Wednesday 2 April 2025 18:33
,
Jane Dalton
Opinion: There can be no winners in Trump trade war
Wednesday 2 April 2025 18:16
,
Jane Dalton
Tariffs 'in bands of 10%, 15% and 20%'
Wednesday 2 April 2025 18:09
,
Jane Dalton
President Trump’s tariffs will be grouped in bands of 10 per cent, 15 per cent and 20 per cent, depending on the country and the industry, according to Sky News.
No official confirmation of the tariffs has yet been revealed.
Breaking: @EdConwaySky revealing that Trump tariffs will be banded 10%, 15% and 20% depending on country and by industry .
— Sam Coates Sky (@SamCoatesSky) April 2, 2025
But is our 20% VAT a “trade barrier” that will be mirrored by 20% tariffs on US imports?
UK still at risk from tariffs if US trade deal secured, warns chancellor
Wednesday 2 April 2025 17:09
,
Jane Dalton
The UK would not be "out of the woods" on tariffs even if it could secure an economic deal with the United States, the Chancellor has told MPs.
Rachel Reeves told the Commons Treasury Committee that the main impact on the British economy would be from global tariffs rather than UK-specific ones, thanks to depressed demand and higher inflation in other countries.
She said: "I think that's really important to understand, because even if we are able to secure an economic deal with the United States - which we very much want to secure and are working hard to secure that - even if that's possible, (it) doesn't mean somehow that we are out of the woods and not impacted by tariffs.
"So we don't just want to see an agreement between the UK and the US, we want to see free trade, fair trade continue."
We won't posture, vows Reeves
Wednesday 2 April 2025 16:55
,
Jane Dalton
Chancellor Rachel Reeves says the UK will not jeopardise the possibility of an economic deal with Donald Trump's US by "posturing" in response to the president's tariffs, which are set to hit British exports.
She told MPs she had been speaking to exporters who did not want a rushed response.
She said: "We don't want to be posturing here – the prize on offer is a good economic agreement between us and the United States.
"We are not going to do anything to put that in jeopardy. We are not going to rush into action to get a quick headline."
Stock markets rebound slightly before close
Wednesday 2 April 2025 16:42
,
Jane Dalton
The FTSE-100 has closed for the day down 0.52 per cent – a drop, but not as dramatic as it might have been after edging towards double that distance around midday, writes business editor Karl Matchett.
Similarly, the CAC 40 in France and German DAX ticked upwards in the last hour or two but still finished in negative territory, the latter down 0.8 per cent for the day.
All eyes now turn to the US and what their domestic markets do ahead of Mr Trump's announcements tonight. The S&P 500, the Dow and the Nasdaq are all trading up between 0.4 and 0.5 per cent so far.
As to what that actually means for tonight and how the markets react after closing is still anyone’s guess at this point, but by the time the London Stock Exchange opens in the morning, investors and companies alike will have started to digest the impact of the president’s words, the size of the new tariffs – and just how much they might each be affected by them.
