Donald Trump is today expected to levy huge tariffs – or taxes – on imports from other countries including the UK.
It could wipe out the Chancellor Rachel Reeves’s economic wriggle room she set out just last week at the Spring Statement and cause alarm bells to ring in Downing Street. Tariffs could be as huge as 25%, including a tariff on all cars imported to the US, a measure expected to hit British luxury car makers like Rolls-Royce. The carnage could cost at least 25,000 jobs in the British car industry alone, the Mirror understands.
Mr Trump says he will impose “reciprocal” tariffs to match the duties other countries charge on US products but the rates vary. Tariffs can be lower for countries with which the United States has trade agreements. Before the US began imposing 25% tariffs on goods from Canada and Mexico as of Tuesday, most products moved between the United States and those countries tariff-free because of Mr Trump’s US-Mexico-Canada trade agreement.
UK Prime Minister Keir Starmer said today at Prime Minister’s Questions that a trade war was “in nobody’s interest.”
He added: “we will take a calm, pragmatic approach. Our decisions will always be guided by our national interest – we rule nothing out.”
Donald Trump makes his first statement of the day
Donald Trump took to his social media platform Truth Social to say: “IT’S LIBERATION DAY IN AMERICA!”
Labour-Tory leaders’ PMQs tariff exchange in full
Conservative Party leader Kemi Badenoch accused Sir Keir Starmer of taking decisions that have left the UK economy “fragile just as we face global trade wars”.
She told Prime Minister’s Questions: “In November, I urged him to seize the draft US trade deal the Conservatives negotiated. Instead he lost our most-experienced trade negotiator. It’s no wonder he can’t get a tariff deal for British cars.”
Mrs Badenoch said the Tories “secured investments for that industry”, adding: “Labour’s record is a car industry in crisis. Even before tariffs there are 25,000 more jobs now at risk. He says he’s preparing for every eventuality, can the Prime Minister tell us exactly what he’s doing to protect the British car industry from his failure to negotiate?”
Prime Minister Sir Keir replied: “We’re taking a calm, pragmatic approach and keeping our feet on the ground. There are constructive talks that are ongoing on a wider economic prosperity deal with the US, that is really important at this moment.
“We are working with all sectors that are likely to be impacted and we’re guided by our national interest at all times and that’s why we’ve said we won’t rule anything out.
“But it is important at a moment like this that we don’t have knee-jerk reactions, that we’re actually cool-headed about this and that’s why we won’t rule anything out. But she was the trade secretary who failed to get a trade deal with the US.”
Keir Starmer responds to fiery Trump tariff warning as he’s told ‘don’t pander to bullying’
Keir Starmer has warned a trade war is in no country’s interests as Donald Trump prepares to unveil sweeping global tariffs tonight.
The PM said the UK government is “prepared for all eventualities” as No10 braces for the US President’s announcement at 9pm.
Mr Starmer said no measures have been ruled out – including retaliatory tariffs – but has previously said there will be no knee-jerk response.
He told MPs: “A trade war is in nobody’s interests, and the country deserves – and we will take – a calm and pragmatic approach.”
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Trump tariffs on EU could impact Northern Ireland, says DUP leader
DUP leader Gavin Robinson asked how the UK government would act should Trump’s tariffs on the EU have an impact on Northern Ireland due to the complexities of the country’s relationship with the bloc following the signing of the Brexit deal.
Mr Starmer said it represented a serious issue and added a “calm and pragmatic” approach needed to be taken.
Starmer rejects call to lead coalition to fight trade war with US
Sir Keir Starmer flatly rejected a call from Lib Dem leader Ed Davey for an economic coalition to stand up to Donald Trump’s tariffs.
Mr Starmer said: “We have a balanced trade relationship with the US, and I believe that our interests are best served by calmly trying to secure a deal which is in our national interest, whilst at the same time preparing and leaving all options on the table.”
Lib Dem’s Ed Davey says free trade could be “lost for a generation”
Liberal Democrat leader Ed Davey warned free trade could be “lost for a generation” amid Donald Trump’s tariffs.
He warned the US might not fold over its tariff threat and called on the Prime Minister to present a united front with the EU and impose reciprocal tariffs.
UK lost country’s top trade negotiator, says Badenoch
Tory leader Kemi Badenoch said Labour lost the country’s top trade negotiator who could strike favourable terms with the US.
She then asked what the Prime Minister was going to do to protect the car industry. Mr Starmer then hit out over how the last government was not able to strike a trade deal with the US when they were in power.
Starmer’s opening PMQs comments on Trump tariffs in full
Sir Keir Starmer has said the UK has been “preparing for all eventualities” in the event of US tariffs, as he promised a “calm, pragmatic approach”.
At Prime Minister’s Questions, Sir Keir told the Commons: “We’ve been preparing for all eventualities ahead of the confirmation of US tariffs later today.
“Let me be clear with the House, a trade war is in nobody’s interest, and the country deserves – and we will take – a calm, pragmatic approach.
“That’s why constructive talks are progressing to agree a wider economic prosperity deal with the US. That’s why we’re working will all industries and sectors likely to be impacted.
“Our decisions will always be guided by our national interest, and that’s why we have prepared for all eventualities and we will rule nothing out.”
UK ‘prepared for all eventualities,’ says Starmer
Sir Keir Starmer said at today’s PMQs that the UK had “prepared for all eventualities” ahead of Donald Trump’s announcement of tariffs.
‘Trade war in nobody’s interest’ says Starmer
Prime Minister Keir Starmer said a trade war “in in nobody’s interest” at today’s Prime Minister’s Questions.
Speaking today, he said: “A trade war is in nobody’s interest – we will take a calm, pragmatic approach. Our decisions will always be guided by our national interest – we rule nothing out.”
Trump slaps tariffs on wife Melania’s birth country
US President Donald Trump is set to slap mass tariffs on Melania’s birth country of Slovenia.
Mr Trump is set to issue tariffs of 25 per cent on global steel and aluminium with Slovenian manufacturers raising the alarm.
They warn the tariffs could dramatically hinder their competitiveness in the US. The Slovenian Steel Group told the country’s press agency: “We have been present in the US for more than 30 years with our own company SIJ Americas. The suspension of quotas and exemptions, and any further increase in import duties would affect our price competitiveness in relation to US steel producers.”
Starmer urged to issue retaliatory tariffs on US
The Liberal Democrats have urged Sir Keir Starmer to form a unified front with the EU and Canada in issuing retaliatory tariffs on the US.
Lib Dem foreign affairs spokesperson Calum Miller said: “Despite weeks of refusing to criticise Donald Trump’s damaging behaviour, it’s now increasingly apparent that the government will not secure a carve out for the UK ahead of Trump’s global tariff war.
“Trump has shown himself to be an unreliable partner on the economy. No one, not even the US’s oldest allies, are safe from the economic harm reaped by this White House.
“We need to end this trade war as quickly as possible. That means working with our Canadian and European allies in a united front against Trump, including retaliatory tariffs where necessary – as well as negotiating a bespoke new customs union agreement with the EU to better protect British businesses.”
Stocks in Europe continue to fall
Stocks in Europe have tumbled as the continent braces for Donald Trump’s tariff annoucement.
The FTSE 100 fell to more than half a per cent with GSK’s losses plunging to 3.6 per cent.
HSBC analysts argued today that anyone hoping Trump will fold on his tariff position will be disapointed.
He said: “We’d argue the potential is in fact higher for the April 2 deadline to introduce even more uncertainty – and hence prolonged broad-based weakness in leading indicators.”
Starmer to face tariffs grilling today
Prime Minister Keir Starmer is set to face a grilling from MPs today as the country braces itself for Donald Trump’s tariff announcement.
Mr Starmer is set to face the grilling at Prime Minister’s Questions today.
What are tariffs?
Tariffs are a type of trade barrier and are essentially a tax that is levied on goods imported into a country.
The tariffs effectively raise the price of goods as companies who pay the tax typically pass the cost on to the consumer.
The increased cost is designed to make them less competitive with goods produced inside the country.
Supporters of tariffs argue they can be a source of income for governments and can tackle unfair trade practices.
But critics believe tariffs ultimately impact the consumer, can disrupt economies and discourage international trade making goods more expensive across the globe.
Government will not ‘speculate’ on plan B if tariff negotiations fail
Bridget Phillipson said she would not “speculate on eventualities” when asked what Britain’s “plan B” is if negotiations fail to produce a wider economic deal with the US.
Asked what the plan B would be, the Education Secretary told Times Radio: “Well, as I say, because the negotiations are still underway, I don’t want to speculate on eventualities.”
She added that the UK was “well-placed as a nation” to reach an economic deal.
Asked whether the Government would be willing to prop up some businesses if the worst happened, Ms Phillipson said: “I’m not going to speculate on what will or won’t happen in the days to come, but what I can tell you is that we’re continuing to have those very intense negotiations.”
Trump tariffs could spell disaster for Germany’s car manufacturing
Oliver Chapman, Group CEO of supply chain management company OCI warned that Europe’s largest economy could see its car manufacturing industry severely impacted.
Speaking to the Express, he said: “The automotive industry will be heavily impacted by ‘Liberation Day’ as described by Trump’s tariffs announcement.
“Germany will likely be impacted the most with a 25 per cent tariff on foreign-made vehicles. This is an effort to get more Americans to buy domestically produced vehicles.”
UK in ‘strong position’ to strike US deal, says government official
The UK is in a “strong position” to strike an economic deal with the US but is “entering a challenging period”, Bridget Phillipson said.
The Education Secretary told Sky News: “We know that we’re entering a challenging period and a trade war with the US would be in no one’s interests.”
She added: “We believe we are in a strong position to strike that kind of deal.”
Asked whether the Government would consider abandoning its fiscal rules in the event of exceptional trade circumstances, she said: “I’m not going to speculate on hypotheticals, not least because those negotiations are still under way.
“We’re working incredibly hard to secure a deal that’s in Britain’s national interest, but fiscal rules do matter.
“They matter because we have to demonstrate that we have a clear sense about how we manage the public finances.
“I think your viewers will have seen in recent years with the Liz Truss government, what happens when you have a government that doesn’t have a grip on the public finances and isn’t prepared to make choices about priorities, and our fiscal rules are important, and they do matter.”
‘Tariffs are bad for business, worse for consumers’ – European Commission
European Commission President von der Leyen last month said she “deeply regretted” the US’ decision to impose tariffs on automotive exports from Europe.
She went on to add: “The automotive industry is a driver of innovation, competitiveness, and high quality jobs, through deeply integrated supply chains on both sides of the Atlantic.
“As I have said before, tariffs are taxes – bad for businesses, worse for consumers equally in the US and the European Union.
“The EU will continue to seek negotiated solutions, while safeguarding its economic interests.
“As a major trading power and a strong community of 27 Member States, we will jointly protect our workers, businesses and consumers across our European Union.”
‘There won’t be any knee-jerk reactions from this Government’
Education Secretary Bridget Phillipson says “discussions are ongoing” between the UK and US aimed at securing an economic deal – but there will not be any knee jerk reactions to tariffs.
She told Times Radio: “Our teams are working at pace, have been working really hard in recent weeks, to put us in the best possible position to secure a deal.
“But I think we all recognise this is going to be a difficult period, but there won’t be any knee-jerk reactions from this Government.
“We will reserve all our options in terms of the responses that are available to us, but our focus at the moment is on continuing those discussions and seeking to get a good deal, that’s in the national interest.”
Could the British Government consider another Budget in wake of US tariffs?
Asked if the Government would consider another budget if the UK is hit by tariffs from Trump, the Prime Minister’s official spokesman said: “We’ll obviously always take an approach that suits the British economy.
“We’ll have a budget in the autumn, and the OBR will obviously update the forecast at that point.”
He added the UK will “reserve the right to respond in a way that does protect British industry”.
What is ‘Liberation Day’ and why is Trump doing it
Trump branded April 2, today, the US’ “Liberation Day” in a post on his Truth Social account last month.
The world has been waiting to discover the grim truth but it is claimed the second term president’s tariffs will free the US from foreign goods and boost its domestic economy – to the detriment of other world economies.
The tariffs are expected to be placed on most countries who trade with the US.
Trump wrote on Truth Social: “The Fed would be MUCH better off CUTTING RATES as US Tariffs start to transition (ease!) their way into the economy. Do the right thing. April 2nd is Liberation Day in America!”
Donald Trump’s tariffs could cost at least 25,000 jobs in UK
More than 25,000 jobs in Britain’s car industry could be lost after Donald Trump’s dramatic escalation of his global trade war.
A report warned of an “extreme” hit to UK car plants, putting around one in five manufacturing jobs in the sector at risk.
The automotive industry is among those set to be left reeling as President Trump prepares to unveil details of his “Liberation Day” wave of tariffs on scores of US imports.
The President has already confirmed an additional 25% levy on all car imports, with no special deal for the UK despite ongoing talks and our so-called long-lasting ‘special relationship.’
Donald Trump tariffs: How they could impact your mortgage and investments in UK
Donald Trump is set to unveil a new wave of tariffs today, in what is being dubbed “Liberation Day” by the US President.
Over the weekend, Trump suggested the tariffs would hit all countries – although he did not go as far as to name specific places.
President Trump argues that tariffs will encourage US consumers to buy more goods from American companies. But if prices go up, economists say this could impact global inflation, which is the measure of how prices are rising. This could then have a direct impact on interest rates in the UK, which can affect how much you pay for your mortgage.
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