Trump hits UK with 10% tariff and sets blanket 25% rate for foreign cars
Donald Trump slapped a 10% tariff on US imports of UK goods as he set out sweeping trade levies hitting countries across the world.
The US president said his “liberation day” announcement was a “declaration of economic independence”.
Mr Trump confirmed that from midnight in Washington, 5am Thursday in the UK, a 25% tariff would be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.
And he indicated 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.
EU
Other blocs with higher tariffs on US goods were hit with tougher import taxes by Mr Trump – for the European Union, which he said would attract 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.”
Sir Keir Starmer’s Government had been lobbying to be spared the tariffs and hopes to strike an economic deal with the White House which will mitigate the impacts.
But Chancellor Rachel Reeves acknowledged the UK would not be “out of the woods” even if a deal could be reached with Mr Trump because of the global economic storm the president’s measures will unleash.
The US dollar fell sharply against key currencies on Wednesday evening as Mr Trump delivered his tariffs announcement.
The dollar had dropped about 0.7% against the pound, at 0.768, shortly after the speech began.
The US currency was weakening further against the euro, falling about 1%, at 0.9162.
‘Economic independence’
Mr Trump said: “This is one of the most important days in my opinion in American history.
“It’s our declaration of economic independence.”
Setting out his measures he said the US had “slashed our trade barriers on other countries while those nations placed massive tariffs on our products and created outrageous non-monetary barriers to decimate our industries.
“And in many cases, the non-monetary barriers were worse than the monetary ones.
“They manipulated their currency, subsidised their exports, stole our intellectual property, imposed exorbitant VAT taxes to disadvantage our products, adopted unfair rules and technical standards and created filthy pollution havens.”
Analysis from the Institute for Public Policy Research (IPPR) suggested tariffs on car imports would put 25,000 UK jobs at risk and “completely destabilise the UK car manufacturing industry”.
The 25% rate on cars had already been expected, but the 10% reciprocal tariff was lower than had been feared with suggestions Mr Trump could have set it at 20%, the same level as VAT.
‘Keep calm’
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.”
No immediate retaliatory measures are expected from the Government as it focuses on trying to strike the hoped-for economic deal with the US.
Business Secretary Jonathan Reynolds said “nothing is off the table”, but “nobody wants a trade war” with the US.
“We will always act in the best interests of UK businesses and consumers,” he said.
“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.”
Confederation of British Industry chief Rain Newton-Smith 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.
“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.”
‘Destructive’
Responding to Donald Trump’s announcement, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: “Donald Trump has launched a destructive trade war that threatens the jobs and living standards of people right across Wales.
“This trade war needs to be brought to an end 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 European partners, as well as those in the Commonwealth like Canada and Australia 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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We can also declare economic independence by boycotting American goods and companies. Tesla are already being hit hard, let’s move onto Coke, Pepsi, Amazon, and watch his support evaporate.
Meta, twitter and the tech billionaires who bow to him, need to suffer also. He doesn’t just want trade wars, he wants to control our free speech. To be only free of we agree with him.
He’s wrong about everything else but he might be right about tariffs.
Why.
Because we need a vibrant manufacturing sector to diversify the economy, and we need a level of globally regional self-sufficiency to be resilient to future shocks. The entire world being completely dependent individual countries for essential goods isn’t good. The smart move for humanity is to have regional free trade zones, so no one part of the world can dominate anyone’s supply but we still get the benefit of reasonably priced imports from our neighbours.
Tariffs to boost American coffers isn’t likely to go down well with other countries. The US is already the biggest, strongest economy – other countries are not going to pay to make it stronger still. Especially as much of that wealth will just end up in the pockets of the millionaires and billionaires, not the workers Trump shouts he loves. Ultimately, this line of action will just see the US eventually marginalised and countries – like the badly hit Vietnam – pivot towards China.
UK Labour sycophant Keir Starmer’s bend over touch your toes reaction to mafia Donald Trump’s 10% tariffs says everything about this calamitous cardboard Conservative. It’s truly embarrassing to witness this slug of a man compared to other world leaders who are willing to fight. See, Trump’s tariffs might not affect this Labour champagne socialist but they will devastate those small & medium business already struggling with Brexit that export to the US, add our flatlining economy, rising cost of living, means we the public always pay dearly for others mistakes.
The dipstick put tariffs on uninhabited islands. He put them a nation suffering a massive earth quake. He put them on Ukraine.
But not Russia.
UK cannot deal with this bully, get in with the EU and take the sod on.
Remember though, reforms best pal.
Now boycott all us goods where possible.
The idiot is tanking his country as expected.
Oh yeah, ending all those “understandings” the Tory party claimed were wins.
And Kemi yesterday came out in support of trump.
What does Nigel think about using protectionism to protect American jobs after telling everyone that free trade deals were the way to fix things. If Trump is right, Brexit and its billionaire backers made things worse when they sent steel jobs to India.
There are plenty of good alternatives to Amazon and eBay for online shopping, let’s all start using them and boycott all US goods
Downing Street 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.”
That’s pretty delusional. UK supplies materials, products and services to other countries who are getting hit harder than 10% by Trump’s tantrum. Inevitably those countries will end up reducing their demand for goods from other countries including the UK. A crude multiplier effect that does no one any good at all..
Someone has worked out why we are at 10% and it is not talking to them. Its fag packet calculations on wrong info. We pay the same as the taliban.
But the UK can now sell more to the US if onerous tariffs on other global suppliers means UK suppliers are now more competitive for US importers.
I see ARTD has had his comments community noted with the reason why on the 10% as he tries to pin it on brexit.