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    Tariffs live: Trump unveils 10% reciprocal tariff on imports from UK and 20% on EU in global trade shake-up

    Trump says America has been ripped off and raped for decadesDonald 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. Analysis: Trouble ahead if Starmer fails to have UK tariff liftedThe 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, writes David Maddox, The Independent’s political editor.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.Jane Dalton3 April 2025 03:00EU manufacturers urged to move to UKAt least one Brexiteer has suggested European manufacturers move their businesses to the UK to benefit from the lower 10% tariff than the 20% in the EU.Jane Dalton3 April 2025 02:30Tariffs will drive up prices globally, warns Chambers of CommerceThe head of the British Chambers of Commerce says the new tariffs will wreak havoc on business communities globally, driving up prices, but that retaliatory tariffs should be only a last resort.Shevaun Haviland, director general, said: “The Government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.“But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on business communities across the world. Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.“So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.“The UK is not without influence, our bilateral trade with the US is worth £300 billion, we have £500 billion invested there and it has £700 billion tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for Government to consider.”She said decisions on taxes would need to be taken very carefully, and the government should keep everything on the table during talks, but retaliatory tariffs should only be a last resort. “Many firms, especially SMEs, will now be facing difficult decisions and we urge government to do all it can to provide practical support to them.”Jane Dalton3 April 2025 02:00How Trump’s tariff plan will workJane Dalton3 April 2025 01:30No escape for UK as Trump targets ‘foreign cheaters’ in new global trade warJane Dalton3 April 2025 01:00Trump claims US industry ‘reborn’ – full report Jane Dalton3 April 2025 00:28Trade 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.Belgium EU SummitJane Dalton2 April 2025 23:58Lower levy saving thousands of jobs, No 10 saysThe 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. Make UK is calling on the Government to launch a long-term industrial strategy which has advanced manufacturing at its heart (Owen Humphreys/PA) More

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    No escape for UK as Trump targets ‘foreign cheaters’ in new global trade war

    British firms have been hit by a 10 per cent tariff on all exports to the United States as Donald Trump ushered in a new era for global trade and pledged America “will no longer be ripped off”.The US president said his “Liberation Day” announcement – in which some nations will pay as much as 34 per cent – was a “declaration of economic independence”.It means that Sir Keir Starmer’s government has failed to secure a carve-out for Britain from tariffs, but while the UK was 13th on a “naughty list” of nations brandished at a White House press conference, it had the joint lowest tariffs along with nations such as Brazil.European Union nations face 20 per cent penalties while China will pay 34 per cent and Cambodia an eye-watering 49 per cent. Switzerland was also hit hard with 31 per cent. Taiwan, which is struggling for survival against threats from China, faces 32 per cent and India is getting 26 per cent.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. “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.”Donald Trump with a list of countries that will be subject to ‘reciprocal tariffs’ More

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    Britons ‘to be £400 worse off’ due to Reeves’ tax hikes – despite pledge to boost pockets by £500

    Working age households will be £400 worse off on average next year due to tax hikes, soaring bills and stagnant benefits, a leading think-tank has warned.Days after Rachel Reeves boasted that Labour’s policies will leave families £500 better off, the Resolution Foundation said the outlook for living standards is actually “historically bleak”.In a blow to the chancellor, the left-leaning think tank said Labour’s tax hikes, the Tories’ ongoing freeze on personal tax thresholds and below-inflation increases to working-age benefits will lead to a £400, or one per cent, fall in disposable income for a typical household. The Chancellor made the spring statement last week (Ben Stansall/PA) More

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    Polish prime minister says his party was targeted in cyberattack ahead of election

    Polish Prime Minister Donald Tusk said Wednesday that his centrist political party was the target of a cyberattack, and suggested that it could have been interference from the east — meaning Russia or Belarus — ahead of Poland’s presidential election next month.Tusk announced on the X platform that his Civic Platform party’s computer system was targeted.“Foreign interference in elections begins. Services point to eastern trace,” Tusk said.Jan Grabiec, the head of Tusk’s office, told the Polish state news agency PAP that the cyberattack consisted of an attempt to take control of computers of employees of the Civic Platform office and the election staff over about a dozen hours on Wednesday.Asked if Tusk was pointing the finger at Russia or Belarus, Grabiec said that would be for Poland’s secret services to comment on, but that in past cases Belarusians have infiltrated Poland’s systems on behalf of Russian intelligence services.Poland is weeks away from the first round of a presidential election, scheduled for May 18. The frontrunner is the Civic Platform candidate, Warsaw Mayor Rafał Trzaskowski, who like Tusk is a pro-European Union centrist. He has been polling around 35%.His main contenders include a conservative backed by the Law and Justice party, Karol Nawrocki, who is second in most polls at a bit over 20%, and a co-leader of the far-right Confederation candidate, Sławomir Mentzen, who has been polling around 20%.If no candidate wins outright with at least 50% of the vote on May 18, a runoff will be held June 1. More

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    Trump tariffs latest: Starmer insists UK ‘ruling nothing out’ as president prepares to spark global trade war

    Starmer: UK ‘preparing for all eventualities’ ahead of Trump tariff announcementSir Keir Starmer has said the UK is “preparing for all eventualities” and “ruling nothing out” as global stock markets nervously await the imposition of Donald Trump’s so-called “Liberation Day” import tariffs.Asian and European stocks stuttered on Wednesday morning amid fears from investors and world leaders that Mr Trump’s plans could intensify a global trade war. Germany saw the biggest dip as the DAX fell 1.3 per cent by midday, with the UK’s FTSE100 also down 0.8 per cent.The White House has provided no details about the size and scope of Mr Trump’s trade barriers, which he is set to announce at 9pm, after which reciprocal tariffs on countries imposing duties on US goods will immediately take effect. As analysts at the leading IPPR think-tank warned that tariffs could “completely destabilise the UK car manufacturing industry” and put 25,000 UK jobs at risk, Sir Keir told MPs that a trade war with the US is “in nobody’s interest”.“The country deserves – and we will take – a calm, pragmatic approach,” Sir Keir told the Commons, adding: “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.”Reeves argues US tariffs on UK would be ‘less relevant’ to UK than global tariffsRachel Reeves has argued that US tariffs on the UK would be “less relevant” to the UK than global tariffs.The chancellor told the Treasury Committee today: “Obviously we are looking ourselves at a whole range of scenarios and preparing for all different eventualities.”She continued: “The biggest impact comes from global tariffs, not just UK. The next biggest comes from retaliation. Actually the specific tariffs on the UK are less relevant on growth and inflation impact than global impact.”She added: “Even if we are able to secure an agreement with the US, that we very much want to achieve and are working hard to achieve, even if that’s possible, that doesn’t mean we are out of woods and not impacted by tarriffs.”Tara Cobham2 April 2025 15:48Comment | It will take Starmer’s greatest skill to deal with Trump’s ‘Liberation Day’ – but victory is possibleOur political columnist Andrew Grice writes:When Donald Trump confirms that he is imposing tariffs on imports from the UK, it will appear to be a huge setback for Keir Starmer. Yet, the prime minister can still turn a diplomatic defeat into victory.Until recent days, Starmer had high hopes of freeing the UK from the worst effects of Trump’s “Liberation Day.” A hastily struck US-UK “economic prosperity deal,” based on advanced technology and services, was ready to go and would have given the UK a carve-out from most Trump tariffs, UK officials told me.It would have been a coup for Starmer. Instead, his softly softly strategy on Trump will now be called into question – both at home, where he will be accused of not standing up to the US president, and abroad, where natural allies like the EU and Canada will urge the UK to join their retaliation against the US.At some points during the hasty negotiations, US officials hinted they were happy with the outline deal on the table. But the only view that mattered was Trump’s, and even his closest advisers didn’t know which way he would jump.As ever, events are more about Trump’s vanity than the eventual outcome. This is surely why he didn’t sign off on the UK agreement. “He wanted his ‘shock and awe’ moment,” one Whitehall source told me.Read more insights here with Independent Premium:Andy Gregory2 April 2025 15:46Reeves issues warning to Trump: ‘It would not be the right policy to increase tariffs on us’Rachel Reeves has warned “it would not be the right policy to increase tariffs on us” as she is questioned over Donald Trump’s tariffs.The chancellor told the Treasury Committee today: “I do recognise the concerns the US has, their concerns are about a global trade imbalance… The UK is not cause of those problems… So it would not the right policy to increase tariffs on us.”Rachel Reeves has warned ‘it would not be the right policy to increase tariffs on us’ as she is questioned over Donald Trump’s tariffs More

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    Voices: ‘The US is the biggest loser’: What Independent readers are saying about Trump’s tariffs

    As Donald Trump prepares to unveil the latest round of US tariffs – grandly dubbed “Liberation Day” by the White House – the uncertainty surrounding their impact is growing. While Trump has hinted that all nations, including the UK, will be affected, the specifics remain unclear. What is certain, however, is that his trade war will have far-reaching consequences for global markets, businesses, and consumers.The topic has got Independent readers talking, with many sharing their views on Trump’s tariffs.Across our community, there is deep concern that these tariffs will drive up prices in the UK, worsen the cost-of-living crisis, and further destabilise an already fragile economy. Some argued that instead of scrambling to avoid tariffs, UK leaders should focus on making US tech giants pay their fair share of tax. Others pointed out historical warnings in America’s own past, drawing parallels to the devastating effects of the 1930 Smoot-Hawley Tariffs.However, a few suggested that the UK could find opportunity amid the chaos – if it plays its cards right. They argued that Redirected trade flows might benefit certain industries, while economic shifts could ease borrowing costs for the government. Whether the UK emerges from this as a loser or a winner will depend on the political and economic decisions made in the coming weeks.Below is a selection of your views on Trump’s tariffs. Feel free to share your own thoughts in the comments section by clicking here.Resisting bullyingStarmer ‘offers US tech firms tax cut’ in last-ditch bid to dodge Trump tariffs.This is diametrically opposed to the position he should be taking.US tech firms already do not pay a fair share of tax on the revenue they generate here. We should be seeking to make them so, regardless of tariffs, but especially so given that tariffs have been imposed.Furthermore, Starmer should not be seeking to wheedle out of tariffs, he should be aligning with the rest of the world to resist Trump’s bullying. Jolly SwagmanRocketing cost of livingMy Limited Capability for Work and Work-Related Activity/Universal Credit… that 1.7 per cent increase, approx £12 per month, which won’t even cover the 29 per cent rise on my water bill, let alone gas/electric, council tax, water, TV licence and mobile/broadband increases.It’s absolutely pitiful in comparison to the rocketing rises of the costs of living on all fronts, and that goes for everyone who isn’t well off or wealthy.And now we have to wait and see the impact of Trump’s tariffs on an already ailing economy and a decimated UK population! It never seems to stop! RedRocket68Support for UK industriesWell, Trump is right in one respect. We need to support our own industries, something successive governments since Thatcher have failed to do.But tariffs are not the way, as they only raise prices for all consumers. Tax is a better option, and raising the digital services tax on Tech Bros who can well afford to pay would raise much-needed revenue.Let our government stand up for British interests for once. Time for the British lion to stop rolling over to have its tummy rubbed like a domestic moggy. Time for the British Lion to show its claws. 49ninerHistory lessonAmerica has been here before with the Smoot-Hawley tariffs of 1930, and it’s difficult to comprehend why they think this time will be any different. All it did was drive inflation, unemployment, and prolong the Great Depression in America. The damage to global trade, instability, and animosity no doubt contributed to the outbreak of the Second World War. fruitpicker15Tariffs benefit no oneThere are no winners with tariffs. The biggest losers are the consumers in the country imposing extra domestic taxes.Trump was elected to lower the price of eggs, not increase the price of automobiles. LordNelson3Trump’s re-electionFrom what we are hearing about the planned increases in import tariffs, Trump might actually destroy his own chances of ever being re-elected. American consumers will be hit by them as well as those elsewhere. Disillusion with Trump will be a more effective way of restoring democracy because the likes of Vance and any other strong supporters of Trump will become just as unelectable.InterestedObserverBritish alternativesIt would be smart not to raise tariffs against America; they only increase prices in the UK. If they want to tax US citizens to buy our products, then that is up to them, we can’t control what they do, but there is no point fighting back by damaging ourselves. I would, however, be harsher on their tech companies in terms of an age validation requirement for adult content, the need to stop harmful content and increase the tax on the companies themselves. Let’s ensure people can have cheap or free access to social media and email, etc., in the UK without the need to access American companies. Let’s ensure there is a British alternative to Amazon. Everyone needs to stop buying American goods and services and seek UK or EU alternatives. PeterHenleyWhy target only economic reprisals?Why is the UK Government restricting their consideration of reprisals against POTUS to economic ones? There are 13 USAF bases in the UK which appear to have no immediate benefit for this country. Simply say that as long as the tariffs continue, no USAF planes will be allowed to land here or overfly UK airspace. There may be UK bases abroad too that are used by the USAF. If Canada and the EU also imposed restrictions, the US “Reach” worldwide would be much diminished. We could also think about adding restrictions to commercial air flights if they provide no benefit to the UK. sweepydogRisks of retaliationIt will very often be the case that the party imposing tariffs, in this case the US, is the biggest loser. A corollary is that retaliation, however tempting, is not necessarily the best policy. Why shoot ourselves in the foot just because Trump has?That said, some carefully selected responses, e.g. targeting the products of Trump-supporting states, might be worth considering politically speaking. Prester JohnImpact of sanctions and tariffsI am not convinced that putting sanctions or tariffs on Russian oil will help the US at all… India and China will just continue to trade oil across the border directly in Yuan. In fact, it will help them to get cheaper oil than the rest of the world… However, the Chinese also hold so much in American T-bills that if things get nasty they will start selling (and not buying)… yields will quickly rise… then there go interest payments. Ok if you’re cash-rich… not so good for middle and working classes with any debt exposure… house owners, students, small businesses, employees… etc… this could all go wobbly pudding… IndysouthwestThe Great DepressionIn response to the Smoot-Hawley Tariffs Act signed into law by President Hoover in 1930, tariffs imposed by U.S.’s trading partners in retaliation, along with the act’s direct effects, were major factors in the reduction of American exports and imports by 67% during the Great Depression.We should remember that, along with the U.S. itself, Germany was among the worst affected at the time, and that this was a significant factor in the rise of fascism.This time, fascism appears to be a driving force. RocketoftheNorthTrade diversions due to Trump’s tariffsTrump tariffs offer the UK a potential fortune through trade diversions, expert suggests….Professor Jun Du, of the Aston Business School, said: “The picture for tariff measures may not be clear at the moment, but what is clear is that economies like the UK need to plan for various eventualities and start to put mitigating measures in place.“US tariffs offer the UK a potential fortune through trade diversions, yet these gains could complicate efforts to reset UK–EU relations, amplifying economic divergence, political distrust, and misalignment.”I never thought I’d agree with Gove – but there is one “expert” we can do without. Do they not understand that if the UK acted as a diverter into the EU, they would not get a fortune, they would be crucified by the EU27 and put in the same box with Trump. ArcticFoxEconomic impactIf Trump’s tariffs lead to fears of global recession, then that will cause interest rates to fall. That restores Reeves’s “fiscal headroom” because borrowing costs will fall and slightly ease cost of living issues. Also, any retaliatory tariffs we impose will bring in revenue.I’m not saying any of this is good, but just that it doesn’t automatically ruin the government’s financial plans. Also, if Labour can’t get growth going (and they seem to have no idea how to do this), the next best thing is to have someone else to blame for the lack of growth.Chrisw27Some of the comments have been edited for this article for brevity and clarity. Want to share your views? Simply register your details below. Once registered, you can comment on the day’s top stories for a chance to be featured. Alternatively, click ‘log in’ or ‘register’ in the top right corner to sign in or sign up.Make sure you adhere to our community guidelines, which can be found here. For a full guide on how to comment click here. More

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    UK entering difficult period as country awaits Trump Liberation Day, minister warns

    The UK is entering a difficult period as the country awaits Donald Trump’s tariff announcement on “Liberation Day”, a Labour minister has warned.Bridget Phillipson issued her warning when she appeared on Times Radio on Wednesday (2 April).Speaking to host Kate McCann, the education secretary said: “This is going to be a difficult period and  we’re focused on continuing with the negotiations with our US counterparts.”Trump is set to unveil sweeping tariffs on any country that “treats the US unfairly” today. More

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    Extra 400,000 people to be signed off as unfit for work under Labour’s welfare reforms, government admits

    An extra 400,000 people could be signed off as unfit for work under Labour’s controversial welfare reforms, the government’s own figures show.Work and Pensions Secretary Liz Kendall declared ministers were being “ambitious for our people and our country” as she announced plans to slash £5bn from the benefits bill earlier this month. Alongside the cuts, she pledged changes to the system designed to get the long-term sick back into work. ( More