Donald Trump slapped a 10 per cent 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 5am on Thursday a 25 per cent 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 per cent would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world.
Other blocs with higher tariffs on US goods were hit with tougher import taxes, including 20 per cent for the European Union.
Sir Keir Starmer’s government 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.
Mr Trump predicted “foreign presidents, prime ministers, kings, queens, ambassadors and everyone else” would soon be calling him to ask for exemptions from the tariffs.
Trade war would weaken West, warns Italian PM
Italian prime minister Giorgia Meloni said Mr Trump’s new tariffs were wrong, and that she hoped to work with the US and Europe to avoid a trade war that would weaken the West.
Lower levy saving thousands of jobs, No 10 says
The prime minister’s office hinted at relief that the announcement wasn’t worse.
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.
But experts say more than 25,000 UK car manufacturing jobs could be at risk from the 25% tariff on cars.
Irish leader hits out at tariffs
There is “no justification” for US tariffs that will hit Ireland, Irish premier Micheal Martin said.
The Taoiseach said: “Ireland believes in open and free trade and that the imposition of tariffs is bad for the world economy. I deeply regret the US decision to impose 20% tariffs on imports from across the European Union. We see no justification for this.”
Mr Martin said: “Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one’s interests.”
UK Steel calls for help in ‘crisis’
UK Steel has called for a significant intervention to help the industry out of a “crisis”.
Director general Gareth Stace said: “Three weeks ago, President Trump delivered a cataclysmic strike to UK steel exports for US manufacturers.
“The new 10% tariffs, stacked on top of the existing 25% levies, are not only sticking the knife in again, but this time turning it in the wound for maximum effect.
“The UK Government must continue its efforts to strike a deal with the US, but we recognise that this requires willingness from both sides…
“We cannot afford to wait any longer as our exports are being damaged, and our market is being undercut by rising imports. UK Steel has warned that the steel crisis has been deepening for some time and bold, decisive and significant interventions are needed now.”
Brexit spared UK from worse, says Tory trade spokesman
Shadow trade secretary Andrew Griffith has described the tariff announcement as “disappointing news” and suggested that Brexit spared the UK from higher import taxes.
He called on the government to agree a “fair” deal with the US for the benefit of businesses and consumers, saying: “This is disappointing news which will worry working families across the country…
“The Chancellor’s emergency budget of just a week ago with its inadequate headroom is now at risk, casting uncertainty about more taxes or spending cuts. Sadly, it is British businesses and workers who will pay the price for Labour’s failure.”
He added: “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.”
Analysis: Sir Keir Starmer’s handling of Trump has been vindicated (so far!)
The prime minister will face some brickbats for failing to win a carve out from tariffs with what many see as a fawning approach to Donald Trump and his rightwing White House administration.
But as the world digests the stunning news of reciprocal tariffs unleashed around the globe, Sir Keir Starmer can take some satisfaction from his work and have hope that for the UK at least there is a quick resolution to this nightmare.
As Downing Street was quick to point out, the 10 per cent minimum tariff being imposed on the UK is much better than others, most notably the EU. This literally is the difference between saving and losing many thousands of jobs.
There have been positive noises from Downing Street that despite issues around free speech concerns from the US, the UK and America are close to a trade deal which would even see these tariffs go away.
There is though a very much wait and see on that.
So while Starmer and his ministers can take some satisfaction now from their efforts there is still a lot of work ahead and high stakes. These tariffs wipe out the chancellor Rachel Reeves’ economic headroom.
A failure to get rid of them will leave the UK government in a lot of trouble.
Trump pushing up costs to UK buyers, says car industry chief
The Society of Motor Manufacturers and Traders branded the new tariffs “deeply disappointing”.
Mike Hawes, chief executive, said: “The announced imposition of a 10% tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure.
“Our cars were already set to attract a punitive 25% tariff overnight and other automotive products are now set to be impacted immediately. While we hope a deal between the UK and US can still be negotiated, this is yet another challenge to a sector already facing multiple headwinds.
“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.
“Trade discussions must continue at pace, therefore, and we urge all parties to continue to negotiate and deliver solutions which support jobs, consumer demand and economic growth across both sides of the Atlantic.”
We’re committed to doing deal with ally, minister pledges
Business secretary Jonathan Reynolds said the United States was “our closest ally” and the government would “remain calm and committed” to doing a deal to mitigate the impact of the tariffs announced by Donald Trump.