The UK is among the many nations to be hit with new tariffs when exporting to the US after Donald Trump unveiled his ‘Liberation Day’ border taxes outside the White House
Donald Trump says he will ‘Make America Wealthy Again’
Donald Trump has announced a raft of huge tariffs on every country in the world – raising fears of a new global recession. Stood in front of the White House, he described the move as a “declaration of economic independence” and promised to “make America wealthy again”.
Trump held aloft a board showing the tariffs he would be placing on each nation, revealing that the United Kingdom will be hit with a 10% border tax when exporting all products to the US from tomorrow. He had left leaders across the world scrambling to come up with a speedy response after teasing the new wave of tariffs over recent days, even going as far as to describe April 2 as America’s ‘Liberation Day’.
The 78-year-old has claimed the new charges on imports will restore US jobs after decades of manufacturing moving overseas – but economists have warned they are likely to kick-start a trade war and potentially trigger a new global recession, while forcing up prices at home and abroad.
Announcing the tariffs on a stage adorned with the US flag in the White House’s Rose Garden, Trump said: “It’s our declaration of economic independence. 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.”
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike”. “We could be so much wealthier than any other country”, he went on to say, claiming the US “has to take care of our people.”
Trump claimed that the tariffs were “reciprocal” in nature, and the cardboard graphic he held aloft displayed a number for ‘Tariffs charged on the USA’ alongside a figure showing the US’s newly announced tariffs. However, the calculations used in the initial figure appeared to include taxes that were not direct tariffs, including VAT and other sales taxes.
As well as the 10% tax on British goods, China would be hit with 34% tariffs, he said, while the European Union will be charged 20%. The 10% tariff on the UK is the baseline rate charged on all countries, with the number increased for what he identified as the nations “taking advantage” of the US.
Donald Trump took aim at his predecessors and some of the US’s allies in his speech, saying that “sometimes friend is worse than foe.” He said he wanted to support US car manufacturing and spoke of how citizens of other nations, including Japan and Vietnam, primarily bought automobiles made in their own country, adding: “That’s why effective at midnight we will impose a 25% tariff on all foreign made automobiles.” This will include cars made in Britain.
Ahead of the announcement, the White House confirmed that the new tariffs would take effect immediately. Trump’s press secretary Karoline Leavitt said: “April 2, 2025, will go down as one of the most important days in modern American history.”
Number 10 has not yet announced any new tariffs on US goods in response. Business Secretary Jonathan Reynolds said: “We will always act in the best interests of UK businesses and consumers. That’s why, throughout the last few weeks, the government has been fully focused on negotiating an economic deal with the United States that strengthens our existing fair and balanced trading relationship.
“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.
“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.
“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”
Earlier today, Keir Starmer said the Government has “prepared for all eventualities” and had begun working with companies likely to be hit by the US tariffs. He told the Commons: “A trade war is in nobody’s interests, and the country deserves – and we will take – a calm and 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.”
The Prime Minister also said the Government is “looking carefully” at how the EU’s proposed countermeasures could impact Northern Ireland after Hilary Benn warned of a likely “issue” due to the post-Brexit Windsor Framework, which means the country remains aligned to the EU single market for goods.
Rachel Reeves meanwhile told the Commons Treasury Committee that the primary impact on the British economy would likely be from “global tariffs” rather than those specifically targeted at the UK, thanks to lower 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.
In the US, White House trade adviser Peter Navarro suggested the new tariffs would raise $600 billion (£462 million) annually, which would be the largest tax increase since World War II.
However, economists say the true number will probably be less than half of this figure, while American consumers would likely be hit by price hikes on imported products, as well as the wider effects of a slowdown in the global economy. Price rises on some products are also likely in the UK and Europe as a result of inflation, experts have warned.
