Donald Trump has declared a global trade war as his administration imposed a wide set of tariffs on goods imported to the US.
Dubbed ‘Liberation Day’ by the US president, all nations were included in the sweeping measures – with the UK hit by a 10 per cent tariff on all exports to the United States as Trump pledged America “will no longer be ripped off”.
European Union nations face stiffer 20 per cent penalties while China will pay 34 per cent and Cambodia an eye-watering 49 per cent. Switzerland was also hit hard with 31 per cent, Taiwan, faces 32 per cent and India is getting 26 per cent.
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 per cent and 20 per cent is thousands of jobs.”
Sir Keir Starmer previously said that “all options remain on the table,” but has not followed other nations in announcing retaliatory tariffs on the US.
The UK exported £59.3 billion of goods to the United States last year, most of which will now face at least a base rate of 10 per cent tariffs.
The European Union (EU) has already retaliated to the first round of tariffs by imposing its own on 26 billion euros (£22 billion) worth of goods from the US. The bloc says it will deliver a “timely, robust and calibrated” response to the upcoming announcement.
Trump's 25 per cent auto tariffs will cover nearly $600 billion worth of vehicles and auto parts imports annually and extend to all computer imports into the US - including laptops.
The list includes tariff codes for engines, transmissions, lithium-ion batteries and other major components, along with less expensive parts including tires, shock absorbers, spark plug wires and brake hoses.
The sweeping duties would erect new barriers around the world's largest consumer economy, reversing decades of trade liberalisation that have shaped the global order. Trading partners are expected to respond with countermeasures of their own that could lead to dramatically higher prices for everything from bicycles to wine. US stock futures sank following his announcement.
"It's our declaration of independence," Trump said at the event in the White House Rose Garden on Wednesday.
“April 2nd 2025 will forever be remembered as the day American industry was reborn. America's destiny was reclaimed and the day that we began to make America wealthy again. For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.
“Americans really suffered gravely. They watched in anguish as foreign leaders have stolen our jobs, foreign cheaters have ransacked our factories and foreign scavengers that have torn apart our once beautiful American dream.
“Our country and its taxpayers have been ripped off for more than 50 years, but it is not going to happen anymore.”
Steel and aluminium
The 25 per cent tariff on steel and aluminium imports to the US has been in place since the middle of March. In such a short time it’s hard to measure the long-term impact of the decision on the UK. However, economists say it could affect UK products worth hundreds of millions of pounds as things like cars, cans and tin foil are likely to become more expensive.
The UK’s steel industry is already struggling as excess capacity in the global market has pushed prices down. This large-scale production is largely coming from China, which is what is partly motivating Trump to place even higher tariffs on the country’s steel at a massive 45 per cent.
Industry figures in the UK have publicly disagreed with Labour’s decision to not retaliate. Gareth Stace, the director-general of trade association UK Steel, branded the Trump administration’s move “hugely disappointing”, and urged the government to take “decisive action” to protect the industry.
“These tariffs couldn’t come at a worse time for the UK steel industry, as we battle with high energy costs and subdued demand at home, against an oversupplied and increasingly protectionist global landscape”, he said.
The US is the steel industry’s second largest export market behind the European Union.
Auto parts
President Trump has confirmed that a 25 per cent import tax will be introduced on all cars imported to the US, a measure which will be a blow to the UK’s automotive industry.
The US is the top buyer of British cars, making up 16.9 per cent of UK car exports last year, and representing a total of more than 101,000 units worth £7.6 billion.
Russ Mould, investment director at AJ Bell, said the tariffs come at "a very difficult time for the industry" as UK car production dropped 12 per cent in February compared to the year before.
He said: "Consumer confidence is on edge, we know it's a highly competitive market, and even electric vehicles aren't perhaps quite selling as quickly as hoped.”
British brand Jaguar Land Rover is set to be particularly hit by the tariffs, as 100 per cent of its cars sold in the US are made abroad. Its famous Defender and Range Rover lines are popular in the US, making the nation its top sales destination worldwide.
Reciprocal tariffs
Focusing on what is has called “unfairness” in the US’s international trade agreements, the Trump administration has imposed reciprocal tariffs at different rates for every partner.
Trump displayed a poster that listed reciprocal tariffs, including 34 per cent on China and 20 per cent on the European Union, as a response to duties put on US goods.
A White House official, speaking on condition of anonymity, said those penalties will take effect on April 9 and will apply to about 60 countries in all.
Canada and Mexico, the two largest US trading partners, already face 25 per cent tariffs on many goods.
The baseline 10 per cent tariff will take effect on Saturday, the official said.
While the US is the UK’s largest single trading partner, the nation exports for more goods to the European Union as a whole. In the 12 months to November, the UK exported £57 billion to the US and £175 billion to the EU.
Political reaction
Britain's business secretary vowed to take a calm approach to Trump's decision to impose import tariffs of 10 per cent on the United Kingdom on Wednesday, as the country attempts to reach an economic deal with Washington.
"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," Jonathan Reynolds said in a statement after the tariffs were announced.
"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."
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.”
Sir Ed Davey has called for the UK and EU to retaliate, accusing 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.”
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