President Donald Trump has unveiled a raft of new tariffs on countries around the world on what he’s dubbed ‘Liberation Day’ as he promises to ‘make America wealthy’ again
The UK has reacted to Donald Trump’s announcement that a 10% tariff will be applied to all UK imports, as Downing Street said they will “keep negotiating”.
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.”
READ MORE: Watch LIVE as Donald Trump’s ‘Liberation Day’ tariffs speech sparks fears of global trade war
While 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.”
Elsewhere, Paul Nowak, TUC General Secretary, said: “Donald Trump has just made the strongest possible argument for [the UK] to positively reset its economic relationship with the [the EU], our largest market. In the face of arbitrary [US] tariffs, the government must do everything it can to protect British jobs & industry.”
Liberal Democrat Leader Ed Davey warned: “Today Donald Trump has launched a destructive trade war that threatens the jobs and living standards of people across the UK and around the world. 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.”
Rain Newton-Smith, chief executive at business lobby group the Confederation of British Industry (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.” The CBI also said that UK businesses need a “measured and proportionate approach” to Donald Trump’s announcement of tariffs.
The US president said during a press conference at the White House that as well as the 10% tariff on all UK imports there will be a 25% tariff on all automobiles from foreign countries from midnight. The UK is just one of the countries hit by huge tariffs amid fears that the world could plunge into a global recession.
Ahead of today’s 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.” The move has left world leaders desperately searching for a response.
The tariffs are on products exported the US and could cost at least 25,000 jobs in the UK. Trump insists that the new charges on imports will restore US jobs after decades of manufacturing moving overseas. However, ecoonmosts have warned that the move is likely to start a trade war and even spark a new global recession.
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.”
Elsewhere, Rachel Reeves acknowledged the UK would not be “out of the woods” even if a deal could be reached with the White House. She told the Commons Treasury Committee: “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.
The news comes on a day when Donald Trump also told members of his cabinet that Elon Musk will be stepping down from his role ‘soon’. The president remains pleased with Musk and his Department of Government Efficiency initiative, according to three Trump insiders who were granted anonymity to describe the evolving relationship.
However, both men have decided Musk will soon to return to his businesses and take on a supporting role. One senior official described Musk’s leadership style as “erratic and disruptive,” adding that his tendency to bypass government channels frequently left Trump’s chief of staff, Susie Wiles, and other key figures furious.
His unvetted plans to slash entire federal agencies reportedly created internal crises, with administration officials forced to walk back or clarify his comments. Asked about the future of DOGE without Musk, Trump was noncommittal this week.
“Well, I can’t tell you that… I can say this: a lot of the people working with DOGE are the secretaries and heads of various agencies – and they’ve learned a lot,” he said. Some of them may try and keep the DOGE people with them. But, at a certain point, I think it will end.”
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