UK to explore hitting Trump with retaliatory tariffs as markets plunge – latest updates

After a meeting with industry representatives, French President Emmanuel Macron says Trump’s tariffs are a ‘shock for international trade’.

He continued by discussing the ‘massive impact’ it will have on the European economy.

The decision that was announced last night is a brutal and unfounded decision.

Adding that the US economy and consumers will emerge ‘poorer and weaker’.

Just days after Percy Pig launched in the US, the iconic sweet may have to return home.

Just four days ago Percy Pigs landed on target shelves for $3.99 as M&S’s ‘gift to America’.

However, the chair of M&S Archie Norman admitted at the Retail Technology Show yesterday that “we might have to change our minds” as Trump’s tariffs loomed.

Shadow chancellor Mel Stride said the Government needs to “up its game” and secure a deal with the US to avoid tariffs.

Asked whether he was concerned about the impact of tariffs on the UK economy, Mr Stride said:

Of course, we have to be concerned. We’re a very open economy, and this will have a serious impact.

Speaking on a visit in south London, the shadow chancellor added:

I think the really disappointing thing is the amount of time that was wasted by this Government before it got in the room with the American administration to try and negotiate that vital free trade agreement so that we don’t have to face these tariffs at all.

What the Government has got to do now is up its game and go and get that deal so that we can be spared this tariff.

Vice-President J D Vance is urging Americans to be patient as the US braces for the impact of Trump’s tariffs.

Yes, this is a big change. I’m not going to shy away from it, but we needed a big change.

Speaking to Fox News, he warns Americans living on a tight budget that things aren’t likely to get better ‘overnight’.

We cannot keep going down the Joe Biden globalist pathway where we have $2 trillion of peacetime debt and deficits.

For 40 years, we’ve had an economy that rewards people who ship American jobs overseas and raises taxes on American workers and we’re flipping that on its head.

UK officials have drawn up a mammoth 417-page list of US imports that could be hit with tariffs in revenge for Trump’s White House attack on global trade.

Consumer favourites like Levi’s jeans, Jack Daniel’s whiskey and Harley Davidson motorcycles are all in the astonishingly lengthy document.

They were subject to tariffs during the trade wars in Mr Trump’s first term in the White House.

But the comprehensive list also covers items from livestock and raw meat like chicken wings to rollercoasters, cricket balls, live bees and tailors’ dummies.

And in a move that may horrify the golf-loving president, the list includes club and ball brands made in the USA.

A Donald Trump ally compared Victoria Derbyshire to a ‘kindergartner’ before threatening to storm off camera during a fiery interview about the new US tariffs.

Sebastian Gorka, who is the president’s deputy assistant, clashed with the veteran journalist during an extraordinary exchange on BBC Newsnight.

It comes after Trump sparked a trade war by unveiling a crippling series of tariffs as part of his ‘liberation day’ speech.

Talking to Derbyshire, Gorka insisted the UK should be grateful to receive one of the lowest tariff rates – despite the looming threat to the nation’s economy.

Watch the interview below:

Donald Trump has just shared his first remarks of the day on his social media platform.

THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE.

He signs off with: “MAKE AMERICA GREAT AGAIN!!!”

Stock markets plunged Thursday after President Donald Trump’s historic tariff announcement, sparking fears of a US and global recession.

It was a sea of red on Wall Street as US stock markets opened for the first time since President Donald Trump unveiled higher-than-expected tariffs.

Markets opened sharply lower, wiping trillions of dollars off the value of US stocks — a blow that will also hit ordinary Americans whose retirement savings are tied to the market.

The S&P 500 opened down 3.12 percent, the Nasdaq down 4.16 percent and the Dow Jones lower by 2.63percent. The S&P is on course for its worst day in two years.

Read more here from our colleagues at Dailymail.com:

Unions are urging the Government to make sure workers do not “pay the price” for the imposition of tariffs by President Donald Trump.

Unite made a number of suggestions, including an immediate reduction in industrial energy prices which it says make UK goods uncompetitive, and called for the steel industry to be designated a critical national infrastructure area to ensure all UK infrastructure projects use UK steel.

Unite also pressed for a commitment to buy British goods wherever possible, including purchasing new UK-built Typhoon jets and not American made F-35s.

General secretary Sharon Graham said:

The Government cannot allow a situation where, yet again, UK workers pay the price.

It is likely that some employers will now use the issue of tariffs at the bargaining table, in an attempt to push down pay.

In an increasingly uncertain world, the Government has to step in and step up to protect UK workers and industry.

This tariff announcement is a wake-up call. Nothing should be taken off the table, we now need a package of measures to support UK manufacturing and jobs. As a starter, that must include reducing industrial energy costs and buying British.

Now, more than ever, workers and our industries need to be proactively backed.

Donald Trump’s son Eric has declared the last country to negotiate a US trade deal with the President will ‘absolutely lose’.

In a tweet posted on X, Eric Trump said countries who react quickest by agreeing new terms will be looked on more favourably by the White House.

It comes as some countries prepare to send ministers to the US for talks while others have indicated they could launch retaliatory tariffs.

Co-op has pledged to keep sourcing meat solely from British farms, after Donald Trump pushed for the UK to buy chlorinated US chicken to avoid higher tariffs.

Co-op Food chief Matt Hood said the convenience store group had an “unwavering commitment” to only source its meat from British farms, adding: “It’s because we believe the quality that comes out of this country is as good as anywhere in the world.”

He said even if foreign meat was cheaper and would help it to compete in a supermarket price war.

We will stick to those commitments that we will always source British because we believe in it.

British digger firm JCB has announced plans to double the size of its new factory in Texas following Donald Trump’s tariffs on UJS imports.

The company purchased 400 acres of land in San Antonio last year after it said it recognised the need to produce more machines in North America.

Original plans for a 500,000 square feet factory have been revised and JCB has now confirmed it will press ahead with plans to double its footprint to one million square feet.

Production at the new $500 million plant is due to start next year with jobs for up to 1,500 people.

JCB chairman Anthony Bamford said:

JCB has been in business for 80 years this year and we are well accustomed to change. The United States is the largest market for construction equipment in the world and president Trump has galvanised us into evaluating how we can make even more products in the USA, which has been an important market for JCB since we sold our first machine there in 1964.

Rachel Reeves delivered her Spring Statement on March 26

President Donald Trump’s ‘Liberation Day’ tariffs are likely to push taxes in Britain even higher in the autumn, according to a leading accountancy firm.

Blick Rothenberg said the imposition of 10 per cent tariffs on UK exports from next week will add to the ‘perfect storm’ facing British businesses.

Yesterday, Trump unveiled his ‘reciprocal tariffs’ to tackle a trade deficit, with the UK facing the lowest possible tariff of 10 per cent, while the EU is facing a 20 per cent levy.

Simon Gleeson, head of Blick Rothenberg’s US corporate desk, said:

Last night’s tariff news is a new gust of headwinds adding to the perfect storm for UK businesses manufacturing here and exporting to the US.

Liberation Day is a new shockwave for the UK’s economic outlook that continues to be impacted by changes in Employers’ National Insurance Contributions, business rates and the rising exodus of non-doms.

The Institute for Fiscal Studies previously predicted Reeves may have to increase taxes on working people because she has left herself with very little headroom.

Gleeson thinks the tariffs make it even more likely she will have to hike taxes in October.

She gambled with a big bet in the Autumn Budget and it has failed, the Spring Statement offered very little reassurance if not more denial and apathy. The new situation with tariffs only compounds the view that there will be further tax increases in October.

The list of US products which could be hit with tariffs if the UK decides to retaliate to Donald Trump’s measures include whiskey, motorcycles, cricket balls and jeans.

A lengthy list of possible targets for tariffs was produced alongside a consultation on whether to introduce retaliatory measures.

The consultation said: “We want to know what you think about the impacts that any future UK tariffs might have, if applied on US goods, in response to the US government’s recent tariff announcements.

“The information gathered will help the Government to assess the scope and impacts of any UK tariff measures that could be applied.”

The Government has released a list of products may be subject to retaliatory tariffs as the UK explores countermeasures against Donald Trump.

The document was published after Jonathan Reynolds told MPs a consultation will be held with businesses about possible retaliatory measures until May 1.

The document, which is more than 400 pages long, includes more than 8,000 potential categories of goods.

This is an indicative product list to demonstrate what products may be subject to any future UK tariff response. The inclusion of a product on this list does not mean that it will appear in a UK tariff response, should the UK choose to respond with tariffs.

You can see the document with the full list of items here.

Luxury car maker Rolls-Royce is hoping a boom in personalised cars from super-rich customers may shield the company from some of the worst effects of the 25 per cent tariff on car imports to the US.

The company, like many of the UK car manufacturers hit by the blanket tariff, is remaining fairly quiet while it fully digests the implications.

It said: ‘We are currently evaluating the announcement in detail and ask for your understanding that we are unable to comment further at the moment.’

However, the luxury car-firm based at Goodwood in West Sussex is hoping its super-rich clients in the US – choosing increasingly bespoke, individual, and one-off models – will be able or willing to absorb the increase posed by the tariff.

The degree to which that happens will determine the size of ‘hit’ Rolls-Royce is likely to take.

Its Ghost model starts from a base of £255,000 – a 25 per cent hit for US customers would add nearly £64,000 to the price.

Meanwhile, its new Black Badge Spectre is priced from £320,000 – an extra 25 per cent would equate to an £80,000 premium for US customers.

Rolls-Royce chief executive Chris Brownridge has stated previously in advance of the Trump tariffs that the company is in a ‘great position irrespective of what happens with tariffs.’

The UK is setting an effective deadline of May 1 for a deal to stop damaging US tariffs amid fears Donald Trump will demand looser food standards.

Business Secretary Jonathan Reynolds told MPs that a consultation will be held over the next four weeks on what American products could be targeted in a retaliation package.

He stressed the process will be paused if an agreement can be reached with the White House to remove the ‘Liberation Day’ measures unveiled by the president last night.

But the stance suggests that Sir Keir is ready to act, despite underlining his determination to have a ‘cool and calm’ response.

If you’re just joining us, we have been reporting on how the UK has reacted to Donald Trump’s Liberation Day tariffs announced at the White House yesterday.

From Saturday, all UK goods imported into the US will face a 10% tariff while other countries face higher rates, including EU exports at 20%.

Here’s what you need to know today:

• Global stock markets traded sharply lower this morning as investors crowded into safe haven assets in response to Donald Trump’s harsher than expected US tariff measures
• The FTSE 100, which fell 0.3 per cent in the previous session, slumped 1.3 per cent in early trading, led by declines in Mondi, Standard Chartered, Barclays, JD Sports and Anglo American with losses of more than 4.5 per cent each
• The FTSE 250 was down 1.4 per cent with retail brands like Watches of Switzerland and Doctor Martens among the worst affected
• Keir Starmer hosted business leaders in Downing Street where he insisted he will act in Britain’s interests after saying Trump ‘acted for his country’
• Conservatives criticised the Prime Minister for being ‘far, far too slow’ to start trade talks with the White House
• The CBI, the UK’s premier business organisation, warned the tariffs will have ‘significant ramifications’ around the world.
• Business Secretary Jonathan Reynolds told MPs he has requested views from businesses ahead of possible retaliatory measures
• Reynolds adds an an “indicative list” of US products which the UK could tariff in response to Trump’s 10% tariff on the UK will be drawn up today

Sir Keir Starmer has said it would not be ‘wise’ to tell the EU how to respond to Donald Trump’s tariffs.

He was asked if he would urge the EU to take a less ‘combative approach’ to avoid a trade war.

Well, in my experience, it’s not wise to go around telling other countries what they should or shouldn’t do.

Everybody needs to act in their own best interest. And no doubt they will do so. My job is to lead the United Kingdom through this focused on our best interest.

Anthony Wills, founder and managing director of Kilchoman Distillery, on Islay, an island of the Inner Hebrides, says up to 15 per cent of his sales are to the US.

There was a slight relief that it wasn’t as high as we were expecting, but it is a huge blow to the industry.

This isn’t a sensible route to take. It is going to impact globally. It is going to have a detrimental effect on business.

The sooner everyone sits down and works a way through, the better.

The USA is a key market for scotch whisky, worth £971m a year.

Starmer has been speaking at a press conference with journalists following Trump’s tariff announcement.

He said: ‘We are taking a calm approach, acting in the national interest’.

This is part of ongoing talks for a deal with the US, where he says they’ve made ‘good progress’.

‘A trade war is in nobody’s interest in my view,’ he said, but stresses that all options remain on the table.

A request for input on “possible retaliatory action” to Donald Trump’s tariffs is to be launched by the UK Government on Thursday, Business Secretary Jonathan Reynolds has said.

In a statement, he told the Commons:

It remains our belief that the best route to economic stability for working people is a negotiated deal with the US that builds on our shared strengths. However, we do reserve the right to take any action we deem necessary if a deal is not secured.

To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step, necessary for us to keep all options on the table.

We will seek the views of UK stakeholders over four weeks until May 1 2025, on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say and influence the design of any possible UK action.

If we are in a position to agree an economic deal with the US that lifts the tariffs that have been placed on our industries, this request for input will be paused, and any measures flowing from that will be lifted.

Sterling rallied against the US dollar on Thursday as markets weighed the implications of sweeping US import tariffs set to come into force next week.

Britain faces a 10 per cent levy on imports to the US, having skirted much harsher tariffs imposed on the European Union and South East Asian trading partners.

The harsher than expected tariffs sparked further weakness in the US dollar, thereby strengthening other global currencies.

The pound was up almost 1 per cent again the dollar approaching midday on Thursday, while the euro added almost 1.1 per cent against the US currency.

Sterling took a slight knock last week as markets weighed in the implications of spending cuts announced in Rachel Reeves’ Autumn Budget.

However, sterling has still added 5.3 per cent against the dollar since the start of the year after clawing back heavy losses suffered in January.

The pound kicked off 2025 on the backfoot, falling around 2.8 per cent against the dollar within the first two weeks of the year, as UK borrowing costs hit a fresh 27-year high on concerns about the British economy.

But sterling has since rallied around 8.3 per cent from its January low, reflecting lower government bond yields but largely the result of a much weaker dollar

Speaking in the House of Commons Jonathan Reynolds admitted that ‘the job is far from done’ and he is ‘disappointed’ by the tariffs.

But he did confirm that talks are still ongoing, saying ‘true strength comes in making the right choices at the right time’.

However, he continued that the UK ‘reserves the right to take any action we deem necesary if a deal is not secured’.

As he called on British businesses to come forward for a consultation on potential retaliatory tariffs.

*this article is available only to Mail+ readers – subscribe here*

In the end Keir Starmer’s kowtowing and special pleading paid off: Britain got off relatively lightly in the maelstrom of Donald Trump’s obsession with tariffs.

Trump did not go for the nuclear option, as many feared: a high universal tariff on all exports into America. Instead he went for reciprocal tariffs: whatever tariffs you put on our exports to you, we’ll levy roughly the same on your exports to America.

Trump even claimed he wasn’t going as far, producing a table as he spoke in the White House Rose Garden claiming to show that in many cases American tariffs would only be half other countries’ tariffs on the US.

Read Andrew’s full piece here:

Mexico, Canada, and Russia were left off of the long list of tariff proposals that the president displayed at the White House early this morning.

Trump leveled tariffs on Mexico and Canada prior to his tariff event on Wednesday on select industries, including a 25 percent duty on auto imports.

‘That stays exempt for now,’ Treasury Secretary Scott Bessent confirmed in an interview with Fox News at the White House after Trump’s announcement.

The treasury secretary explained that Russia was left off of the list because the United States did not trade with them.

‘Well, Russia and Belarus we don’t trade with. Right?’ he said, referring to the ongoing economic sanctions against Russia for invading Ukraine. ‘They are sanctioned.’

Scotland’s Deputy First Minister has called on the UK Government to leave no stone unturned in efforts to secure a trade deal with America, as she warned tariffs imposed by US President Donald Trump will impact on some of Scotland’s key industries.

Kate Forbes said the Scotch Whisky Association had already estimated the 10 percent tariff imposed by the billionaire politician could result in between £200 million and £400 million worth of export losses annually.

On the imposition of tariffs, the Deputy First Minister said there was ‘no doubt this will have an impact on some of our key industries’.

Homeowners looking for a remortgage have been urged to shop around now for a deal amid fears inflation imported from the US could prevent interest rates from coming down.

Experts say there is a chance mortgages could become more expensive as a result of Donald Trump’s tariffs amid fears from economists the taxes will be inflationary and harm economic growth

Sarah Coles, head of personal finance, Hargreaves Lansdown, said:

Modelling the impact of so many unknowns is always tricky. There’s a risk that inflation is imported from the US and around the world, which would mean the Bank of England keeps interest rates higher for longer, which would mean more expensive mortgages.

However, right now, the market doesn’t think this will be the Bank’s biggest worry. It’s assuming that all these tariffs hit global trade, putting the Bank of England under pressure to cut rates to support growth, so it’s pricing in more cuts. The uncertainty means that if you have a remortgage looming, it’s well worth shopping around for a deal as early as possible.

If rates rise between now and when you need to remortgage, you’ll have locked in a cheaper deal, and if they fall, you can track down something more competitive.

by David Wilcock, Deputy Political Editor for MailOnline

Ireland is facing a double hammer blow from Donald Trump’s tariffs frenzy, its deputy premier warned today as MMA fighter Conor McGregor led calls for the country to quit the EU.

Simon Harris said it is the Irish Government’s ‘working assumption’ that the White House will launch a further attack aimed specifically at the pharmaceuticals industry, on top of the 20 per cent rate levelled at members of the bloc.

The medical drugs and chemicals industry employs 45,000 people in Ireland and trade with the US is worth 58 billion euros annually.

The European Union is finalising its first package of countermeasures with commission president Ursula Von Der Leyen warning Europe is prepared for further retaliation if necessary.

Read the full story here:

Kemi Badenoch has called on lessons from history as she responded to the 10 per cent tariff slapped on UK exports to the US.

The Tory leader highlighted former US President Ronald Reagan’s trade policies as she warned: ‘If we fail to learn the lessons of history we will be doomed to repeat them.’

Let’s take a look at how some countries have reacted to Donald Trump’s Liberation Day tariffs this morning as some indicate a willingness to do business, while others prepare retaliatory measures.

French government spokeswoman Sophie Primas said the EU is ‘ready for a trade war’ and is planning an ‘attack online services’ after a new 20% tax was imposed on EU goods exported to the US.

Vietnam’s prime minister Pham Minh Chinh has ordered a new ‘rapid response team’ to be set up after the country was hit with massive tariffs of 46 percent. One of the worst-hit trading partners, deputy prime minister Ho Duc Phoc has also been dispatched to the US for a ‘working visit’.

Italian Prime Minister Giorgia Meloni cleared her diary Thursday to focus on the response to a hike in US tariffs imposed on goods from the European Union, her office said. Meloni, who late Wednesday criticised the tariffs as “wrong” and said she would do everything to avoid a trade war, has cancelled her scheduled engagements, according to her office.

The Philippines reacted with ‘guarded optimism’ to Donald Trump’s sweeping tariffs, saying higher rates placed on its neighbours could present an opportunity. The longtime US ally was hit with a reciprocal levy of 17 percent, though Manila’s Department of Trade and Industry (DTI) noted the country ranked among ‘the least hit’ with Vietnam (46%), Thailand (36%) and Taiwan (32%) significantly higher

South Africa’s presidency saidthat the new U.S. tariffs underscore the need to negotiate a new bilateral trade deal with Washington to ensure long-term trade certainty after Trump imposed a 30% rate. ‘The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the U.S., as an essential step to secure long-term trade certainty,’ the Presidency said in a statement.

Dan Coatsworth, investment analyst at AJ Bell, says:

The UK is a relative winner from Liberation Day given its 10% tariff rate is the lowest of the pack.

This suggests that Keir Starmer’s charm offensive in recent weeks and months might have paid off to some extent. Relative to the EU’s 20% tariff, the UK is looking much stronger and there is speculation Starmer would prefer to do deals to lower the rate rather than retaliate.

Scrapping the digital services tax on US tech firms is a possibility but Trump will push for everything he can get.

by Jason Groves, Political Editor of The Daily Mail

Five weeks ago, Keir Starmer basked in the glow of Donald Trump’s approval in the White House.

After biting his lip for months, it appeared that the Prime Minister’s strategy of relentlessly sucking up to the man he once branded a ‘buffoon’ was paying off.

‘I think there’s a very good chance that in the case of these two great, friendly countries we could very well end up with a real trade deal where the tariffs wouldn’t be necessary,’ the US President declared warmly at a joint press conference.

‘We’ll see if we can do something pretty quickly.’

Fast forward little more than a month and the PM last night found himself – like the rest of the world – tuning in to watch President Trump’s ‘Liberation Day’ announcement on TV to find out just how heavy the tariffs on British goods such as cars and whisky will be.

Read his full analysis here:

The European Union has insisted it is ‘ready for a trade war’ with the United States, the French government spokeswoman said today.

The 27-member bloc said it plans to ‘attack online services’ in response to Donald Trump’s new tariffs after a 20% tax was imposed on EU goods exported to the US.

Sophie Primas (pictured) told broadcaster RTL she was particularly concerned about the ‘strong’ impact on wine and spirit production in the wake of tariffs.

We are pretty sure that we are indeed going to see an adverse effect on production. We have a whole range of tools and we are ready for this trade war. Then we will look at how we can support our production industries.

Turning to Trump, Primas said the US President ‘thinks he is the master of the world.’

It is an imperialist stance that we had somewhat forgotten about but which is returning with great force and great determination.

President Emmanuel Macron will meet Thursday with representatives of French sectors impacted by tariffs at 2pm UK time.

Jonathan Reynolds told Times Radio:

Any barrier to trade, particularly between the UK and our major trading partner, which the US is, is a disappointment to me. It’s a challenge.

So, I recognise that the UK is in a better position than a lot of other countries from what was announced last night, but I was still disappointed.

He said the UK has ‘modelled every scenario’ for the impact of tariffs but it is ‘not just about the relationship between the UK and the US, but what is going on in the rest of the world’.

Donald Trump’s decision to impose the 10% tariff on the UK will be viewed as a Brexit victory by some given the European Union’s levy was doubled to 20%.

Shadow trade secretary Andrew Griffith suggested the Britain’s withdrawal from the EU was one of the main reasons the penalties were at the lower end of the scale.

Speaking last night, he said:

The silver lining is that Brexit, which Labour ministers voted against no less than 48 times, means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.

Economists agreed the difference in tariffs between the UK and EU would be seen as a Brexit benefit.

Simon French, chief economist at Panmure Liberum, said:

The first salvo in the US multilateral trade conflict was a win for the UK. Not an absolute win with new 10% baseline tariffs imposed on her, but a relative win with no indications of a broadening of scope of US tariffs to the services sector and with the UK sitting at a lower reciprocal threshold than a range of other major economies. A Brexit dividend will no doubt be claimed by those looking at the 20% levy imposed on EU goods exports to the US.

The former defence secretary has taken to X to slam Trump’s trade tariffs as using ’19th-century trade policy in the 21st century’.

And accusing Trump of taking the US and the rest of the world ‘backwards’ by imposing a wave of tariffs on foreign imports.

Donald Trump slapped a 10 per cent tariff on US imports of UK goods – and experts believe a wave of price rises will hit American consumers first, with Brits later facing similar increases.

Here, MailOnline looks at what it could mean for the UK:

• What does this mean for UK consumers?

Experts have said it will be a bumpy road ahead for Brits, despite the UK appearing to come out the least scathed in Mr Trump’s announcements.

Clarissa Hahn, an economist at Oxford Economics, told the BBC that while the initial wave of price rises will hit American consumers first, UK citizens may later face similar increases.

This would be due to the potential fluctuation of the pound, and exchange rates with other currencies, which were volatile in the wake of Mr Trump’s announcements.

• Could it affect British jobs?

The Institute for Public Policy Research think tank said that the 25 per cent car tariff puts 25,000 British jobs at risk, as one in eight cars made in the UK are sent to America.

It’s not just automotive jobs that are at risk – pharmaceutical jobs may also be at risk, the think tank said.

British pharma firms AstraZeneca and GSK make around 40 per cent and 50 per cent of their sales to the US, respectively.

While they both have manufacturing plants in the US, they also rely on the import of raw ingredients from the UK and the EU, which has been hit with a 20 per cent levy.

• Will interest rates be impacted?

Mr Trump’s tariffs are likely to affect interest rates for Britons, experts said.

Used to determine how much ordinary people have to pay to borrow money for loans on houses, cards and credit cards, high interest rates can be a blessing for those with savings and a curse for those in need of borrowing.

Currently at 4.5 per cent, economists have said they are expecting two more cuts of rated by the end of the year.

But last month, the Bank of England said it would not cut rates because of ‘intensified’ economic uncertainty caused by Mr Trump’s upturning of the economic order .

• How has the Government responded?

Prime Minister Sir Keir Starmer told business chiefs in Downing Street that ‘clearly there will be an economic impact’ from Mr Trump’s tariffs but the Government would respond with ‘cool and calm heads’.

The Business Secretary meanwhile said ‘nothing is off the table’.

Jonathan Reynolds said the UK is ‘committed’ to doing a deal with the US which he hopes ‘will mitigate the impact of what has been announced today’.

British business chiefs voiced alarm following Trump’s announcement last night , but accepted it could have been worse for the UK.

The Society of Motor Manufacturers and Traders Ltd (SMMT) described the imposition of tariffs as ‘deeply disappointing’.

• Mike Hawes, SMMT chief executive, said:

The announced imposition of a 10 per cent tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure.

These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.

• UK Steel director general, Gareth Stace, said:

Three weeks ago, President Trump delivered a cataclysmic strike to UK steel exports for US manufacturers. The new 10 per cent tariffs, stacked on top of the existing 25 per cent levies, are not only sticking the knife in again, but this time turning it in the wound for maximum effect.

• Rain Newton-Smith, chief executive of the CBI said:

Business has been clear: there are no winners in a trade war. Last night’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 Federation of Small Businesses (FSB) said 59 per cent of small UK exporters currently sell into the US market, suggesting emergency support will be needed.

• Tina McKenzie, the FSB’s policy chair, added:

Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat.

A leading economist has predicted UK consumers will see price rises and more Chinese products on the shelves as a result of Donald Trump’s tariffs.

Joe Nellis, a professor of global economy at Cranfield School of Management and economic adviser to MHA, said:

How will this effect UK consumers? Prices will most likely rise almost immediately, particularly for goods such as electronics, so inflation is certainly a worry. However, we are likely to see some trade diversion.

Goods that would have gone from China to US could instead be diverted to the UK to avoid heavy tariffs — cheap goods could reduce inflation in UK but would impact businesses as they are forced to compete with foreign businesses flooding the market with cheap goods. If this was to happen it would take some time for the effects to kick in, and it will not even necessarily happen.

The UK economy has avoided ‘a direct blow’ from US President Donald Trump’s tariff regime but will still face a ‘significant’ impact, according to economists.

It came as he announced heavier tariff plans on a raft of other countries, including a 20 percent tariff on imports from EU nations.

Nevertheless, UK car manufacturers will be hit by a 25 percent tariff on all foreign cars imported to the US, which experts have said could put 25,000 UK jobs at risk.

Barret Kupelian, chief economist at PwC, said:

The UK avoided a direct blow – but the global economy has taken a substantial hit.

For the UK, the impact is significant – though less severe than for some other countries. In the short term, businesses face a sharp rise in uncertainty.

Foreign leaders and governments reacted with fury last night after Donald Trump announced his sweeping reciprocal tariffs which threaten to spark a global trade war.

The US President vowed to stop the US being ‘pillaged’, ‘raped’ and ‘brutalised’ so has unveiled reciprocal tariffs on all foreign nations, calling it America’s ‘Declaration of Economic Independence’.

Let’s see how the world reacted to the ‘Liberation Day’ measures:

• Canadian Prime Minister Mark Carney

It’s essential to act with purpose and with force, and that’s what we will do

• European Commission president Ursula von der Leyen

We [the EU] are already finalising the first package of countermeasures in response to tariffs on steel. We’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.

• Australian Prime Minister Anthony Albanese

This is not the act of a friend. It is the American people who will pay the biggest price for these unjustified tariffs. This is why our government will not be seeking to impose reciprocal tariffs. We will not join a race to the bottom that leads to higher prices and slower growth.

• Chinese commerce ministry

China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue.

• Irish Prime Minister Micheal Martin

We see no justification for this. More than €4.2bn worth of goods and services are traded between the EU and the US daily… Tariffs drive inflation, hurt people on both sides of the Atlantic, and put jobs at risk.

• Mexico President Claudia Sheinbaum

It’s not a question of if you impose tariffs on me, I’m going to impose tariffs on you. Our interest is in strengthening the Mexican economy.

Chris Philp, the shadow home secretary has hit out at the Prime Minister for being ‘far, far too slow’ to start trade talks with the White House.

Speaking on Radio 4’s Today Programme he added that the 10 percent baseline tariff rate on the UK ‘is not based on any negociating genius from the government’.

Dozens and dozens of countries have the 10pc tariff, which is not based on any sort of negotiating genius by the Government, it is based on the USA’s assessment of our tariffs and other obstacles.

Of course our cars, which is the largest goods sector we export, is going to be whacked with 25percent.

And I would add that we are getting a lower rate than Europe because of Brexit and the fact that we can have separate tariff arrangements.

Prime Minister Sir Keir Starmer told business chiefs he will act in Britain’s interests today as he discussed the economic impact of Donald Trump’s tariffs.

The Prime Minister has promised the Government would respond with ‘cool and calm heads’ after Trump slapped a 10% tariff on US imports of UK goods.

Sir Keir told business chiefs in Downing Street that the US President ‘acted for his country, and that is his mandate.

‘Today, I will act in Britain’s interests with mine.’

He said the UK was ‘prepared’ and that ‘one of the great strengths of this nation is our ability to keep a cool head’.

More than 25,000 UK car manufacturing jobs could be at risk if Donald Trump’s planned import tariffs are introduced, according to new analysis.

The Institute for Public Policy Research think tank says Jaguar Land Rover and the Mini factory in Cowley, Oxford, seem most exposed to US tariffs on cars.

The US is the second largest export market after the European Union for cars built in the UK.

IPPR research fellow Pranesh Narayanan said:

Trump’s tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs and putting the Government’s growth plans at jeopardy.

Global stock markets traded sharply lower on Thursday morning as investors crowded into safe haven assets in response to Donald Trump’s harsher than expected US tariff measures.

Late on Wednesday Trump finally revealed details of levies imposed on global goods imports, with the President’s ‘liberation day’ announcements promising to kick start a new golden age for US industry.

South East Asian trading partners were hardest hit, with levies ranging from 24 per cent on Japanese goods to an eye-watering 49 per cent on Cambodian goods, while the European Union will face a 20 per cent tariff.

All countries were already hit with 25 per cent tariffs on auto imports last week.

Business Secretary Jonathan Reynolds has said he is working to reverse the 10% US tariffs rather than secure an economic deal to offset them.

Asked if he was hoping to do a deal to compensate for the tariffs with economic gain, he told the BBC:

No, I want those tariffs removed. I want them removed in terms of the 10% that’s been announced. I want them removed on steel and aluminium. I want not only to remove what has been announced so far, but to strengthen that relationship.”

Talking about a potential UK-US economic deal, Mr Reynolds said there are ‘issues still to resolve’.

Senior business chiefs have headed into Downing Street this morning for urgent talks with Keir Starmer following the new 10% tariff on UK exports to the US.

Bosses of GSK, the pharmaceuticals company, Unilever, which makes consumer goods, Johnson Matthey, a chemicals company, are all locked in a meeting with the Prime Minister.

Representatives of Airbus, Shell and the car industry are also said to be involved in discussions.

Starmer has insisted the UK will take a ‘calm and pragmatic’ approach to tariffs and has yet to rule out any action including retaliatory tariffs.

These are the top five UK goods exported to the US in 2024:

• Cars: £9.0 billion
• Medicinal and pharmaceutical products: £6.5 billion
• Mechanical power generators: £4.6 billion
• Scientific instruments: £2.4 billion
• Aircraft: £2.2 billion

Global markets have tumbled today after US President Donald Trump confirmed sweeping import levies on the UK and countries across the world.

The FTSE 100 Index dropped sharply on opening, falling 122.4 points or 1.4% in the first few minutes of trading.

Markets across Asia endured punishing declines overnight, with the Nikkei in Japan down nearly 3% and China’s Hang Seng 1.5% lower after Mr Trump’s self-declared “liberation day” saw him announce hefty tariffs on imports into the US, including a 10% penalty for UK goods.

While the US markets closed higher overnight after volatile trading on Wall Street, pre-market futures trading pointed to sharp declines in Thursday trading, with the S&P 500, Nasdaq and Dow Jones all expected to open lower, dragged lower by retailers and big tech stocks.

Gold hit another new record high amid a flight to safety, while the pound rallied against a weaker dollar, up 0.9% to 1.311 US dollars, but was 0.3% lower at 1.196 euros.

The tariffs are due to come in between April 5 and 9 and make Mr Trump America’s most protectionist US president since Herbert Hoover 90 years ago.

The UK will be hit with a 10 percent tariff on all exports to the United States as Trump pledged America ‘will no longer be ripped off’.

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 per cent and 20 per cent is thousands of jobs.

Global markets went into freefall yesterday after Donald Trump declared a worldwide trade war with his ‘Liberation Day’ tariffs blitz.

The US President vowed to stop the US being ‘pillaged’, ‘raped’ and ‘brutalised’ as he unveiled reciprocal tariffs on all foreign nations, calling it America’s ‘Declaration of Economic Independence’.

He also launched his MAWA movement – a play on MAGA – to ‘Make America Wealthy Again’.

We will be covering all the latest news here in our live blog.