United States President Donald Trump has revealed a list of tariffs on what he is branding ‘Liberation Day’ which opponents fear will have a crippling effect on the world economy
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Donald Trump announces that the UK will face a 10% tariff
Donald Trump announced a reciprocal tariff of 10% on the United Kingdom as he outlined a list of measures which are expected to rock the world economy.
Going through a chart which marks the tariffs being imposed on different countries, the president said: “United Kingdom – 10% – and we’ll go 10% so we’ll do the same thing.” Trump has put in place a barrage of what he claims to be reciprocal tariffs affecting both traditional enemies and allies like the UK.
After weeks of White House hype and anxiety the US president has finally announced the measures on what he has branded “Liberation Day.” They are tariffs which are aimed to boost US manufacturing and punish other countries for what he says have been years of unfair trade practices.
“It’s our declaration of economic independence,” Trump said in announcing the tariffs. “For years, hardworking 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.”
This is the full list of reciprocal tariffs
- China: 34%
- European Union: 20%
- South Korea: 25%
- India: 26%
- Vietnam: 46%
- Taiwan: 32%
- Japan: 24%
- Thailand: 36%
- Switzerland: 31%
- Indonesia: 32%
- Malaysia: 24%
- Cambodia: 49%
- United Kingdom: 10%
- South Africa: 30%
- Brazil: 10%
- Bangladesh: 37%
- Singapore: 10%
- Israel: 17%
- Philippines: 17%
- Chile: 10%
- Australia: 10%
- Pakistan: 29%
- Turkey: 10%
- Sri Lanka: 44%
- Colombia: 10%
Among the measures he said he will impose tariffs of 25% on all foreign-made automobiles from midnight, in the speech at the White House where he said people could expect a “golden age of America”. Experts fear this move could cost 25,000 jobs in the British car industry.
And he said tariffs of 10% would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world as part of his “reciprocal” measures.
Other countries and blocs with higher tariffs on US goods were hit with tougher import taxes by Trump, for the European Union, he said would impose a 20% rate. The president also hit out at “exorbitant” VAT rates, which he views as a barrier to US firms seeking to sell into markets such as the UK where the taxes apply.
Speaking in the White House rose garden, Mr Trump said: “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.”
But by most economists’ assessments, the move threatens to plunge the US economy and others around the world into a downturn and upend decades-old alliances. Still the White House is exuding confidence despite the political and financial gamble with Trump delivering his plans with his usual bravado.
Beforehand White House press secretary Karoline Leavitt had said: “April 2, 2025, will go down as one of the most important days in modern American history.” She said the new tariffs would take effect immediately.
Details of Trump’s tariff plans had still been unclear hours before the president’s scheduled speech. The S&P 500 stock index was up slightly in Wednesday trading as investors hoped to have more certainty about his agenda.
The tariffs have followed similar recent announcements of 25% taxes on auto imports; levies against China, Canada and Mexico; and expanded trade penalties on steel and aluminium. Trump has also imposed tariffs on countries that import oil from Venezuela and he plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips.
None of the warning signs about a falling stock market or consumer sentiment turning morose has caused the administration to publicly second-guess its strategy. White House trade adviser Peter Navarro has suggested the new tariffs would raise $600 billion annually, which would be the largest tax increase since World War II.
Treasury Secretary Scott Bessent told lawmakers the tariffs would be capped and could be negotiated downward by other countries, according to the office of Republican Kevin Hern. The UK could still be hit by the impact of Trump’s tariffs even if a quick deal can be struck with the US, Rachel Reeves admitted beforehand.
Sir Keir Starmer’s Government is prepared to offer concessions to the US in an attempt to reach an “economic deal” which could mitigate the impact of the president’s tariffs. But the chancellor acknowledged the UK would not be “out of the woods” even if a deal could be reached with the White House because of the global economic storm the president’s measures will unleash.
Following the announcement of Trump’s tariffs the Confederation of British Industry (CBI) has said that UK businesses need a “measured and proportionate approach”. Rain Newton-Smith, chief executive of the CBI said in a statement: “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.
“The Government has rightfully tried to negotiate a carveout to any incoming tariffs through a bilateral economic deal. As they seek to grow the economy, negotiating stronger trading relationships with all like-minded partners will be foundational to any success.
“The UK must use this unpredictable period to double down on its commitment to free, fair and open trade. Doing so will provide businesses with the confidence needed to kickstart growth, foster innovation, and boost productivity.”
