Donald Trump has revealed his package of tariffs – including a 10% levy on the UK. The EU says the tariffs are a “major blow to the world economy”, and there are fears millions could lose their jobs in China. Follow below for the latest, and listen to Trump 100 analysis as you scroll.
Thursday 3 April 2025 08:01, UK
Live reporting by Bhvishya PatelandOllie Cooper
Donald Trump has announced sweeping global tariffs that threaten to ignite an unprecedented trade war.
The US president held up a chart in the White House Rose Garden outlining what he said were the “reciprocal” tariffs each country would face.
A tariff is effectively a tax on imported goods – the US has been on the wrong end of these for decades and Trump’s hope is that his policy will encourage companies to manufacture inside the US and will “make America wealthy again”.
But the scale of Trump’s actions threatens to drive up prices in the US and cause chaos in the global economy.
His list included 10% tariffs on goods entering the US from the UK in response to the UK’s 20% VAT. As 10% is Trump’s baseline tariffs rate, the UK is seen to have come out of this better than most.
Trump confirmed the European Union will face a 20% reciprocal tariff on all other imports. China’s rate is set at 34%.
His first tariff announcement was a 25% duty on all car imports from midnight – 5am today.
“This is Liberation Day,” he told a cheering audience of supporters.
Here’s data and economics editor Ed Conway explaining the story in a minute…
As we’ve been reporting this morning, Donald Trump has introduced a raft of global tariffs that will have an impact across the world.
Here, we take a look at what the reaction has been so far…
European Commission president Ursula von der Leyen
“President Trump’s announcement of universal tariffs on the whole world, including the EU, is a major blow to the world economy.
“Uncertainty will spiral and trigger the rise of further protectionism. The consequences will be dire for millions of people around the globe.
“We are already finalising a first package of countermeasures in response to tariffs on steel. And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail.”
Canadian Prime Minister Mark Carney
“(Trump) has preserved a number of important elements of our relationship, the commercial relationship between Canada and the United States. But the fentanyl tariffs still remain in place, as do the tariffs for steel and aluminium.
“We are going to fight these tariffs with countermeasures, we are going to protect our workers, and we are going to build the strongest economy in the G7.”
Australian Prime Minister Anthony Albanese
“The (Trump) administration’s tariffs have no basis in logic and they go against the basis of our two nations’ partnership.
“This is not the act of a friend. Today’s decision will add to uncertainty in the global economy and it will push up costs for American households.”
China’s commerce ministry
“China firmly opposes this and will take countermeasures to safeguard its own rights and interests.
“There are no winners in trade wars, and there is no way out for protectionism. China urges the US to immediately lift unilateral tariffs and properly resolve differences with its trading partners through dialogue on an equal footing.”
Japanese Prime Minister Shigeru Ishiba
“Japan is a country that is making the largest amount of investment to the United States, so we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries.”
“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response.”
Brazilian foreign ministry
“The Brazilian government regrets the decision made by the North American government today to impose additional tariffs of no more than 10% on all Brazilian exports to that country.
“The Brazilian government is evaluating all possible actions to ensure reciprocity in bilateral trade, including resorting to the World Trade Organisation, in defence of legitimate national interests.”
Swedish Prime Minister Ulf Kristersson
“We don’t want growing trade barriers. We don’t want a trade
war.
“We want to find our way back to a path of trade and cooperation together with the US, so that people in our countries can enjoy a better life.”
Spanish Prime Minister Pedro Sanchez
“Spain will protect its companies and workers and will continue to be committed to an open world.”
You can watch our correspondents break down the world’s response to the new tariffs here…
Beth Rigby, Sky News’ political editor in Westminster, explains there is relief in London despite Trump putting tariffs on the UK.
It has been quite a rollercoaster for the UK government – from the hope it could avoid tariffs, or even get that economic deal with the US, to the realisation that was not going to happen, and then the anticipation of how hard the UK would be hit.
In Westminster on Wednesday night, there was actual relief because the UK is going to have a 10% baseline tariff – that is the least onerous of all the tariffs we saw President Trump announce.
Number 10 sources were telling me as Trump was in the Rose Garden that while no tariffs are good, and it’s not what they want, the fact the UK has tariffs that are lower than others vindicates their approach.
They say it’s important because the difference between a 20% tariff and a 10% tariff is thousands of jobs.
Where to next? Number 10 says it will “keep negotiating, keep cool and calm”, and reiterated Sir Keir Starmer’s desire to “negotiate a sustainable trade deal”.
You can read the rest of Rigby’s analysis in full via the link below, along with the verdicts of other Sky News correspondents…
Business and Trade Secretary Jonathan Reynolds is speaking to Sky News this morning after the imposition of 10% tariffs by Donald Trump.
He tells Wilf Frost: “I recognise the announcements by the president last night put the UK in a relatively better position than, for instance, the EU.
“But to be clear, any imposition of trade barriers, tariffs – in this case between the UK and a major market like the US – is a disappointment to me,” he adds.
He says the UK “is in a better position than other countries, but I’m not satisfied”.
Reynolds says he will take “any measures” needed to protect the UK from the wider impacts of the tariffs, including other markets trying to dump goods previously earmarked for the US to the UK.
Reynolds repeats the UK stance that retaliatory tariffs won’t be enacted against Washington.
And he adds: “When I look at the work that we’ve been able to do with the US so far… I hope perhaps if we are successful, there’ll be a template there for the countries to resolve some of these issues.”
By Sarah Taaffe-Maguire, business and economics reporter
The first markets have had their say on President Trump pulling the trigger on a global trade war.
Investors in Asian and the Pacific are not happy; markets have tumbled.
Taking the biggest hit is Japan, it’s benchmark stock index of most valuable companies, the Nikkei 225 dropped a steep 4% before levelling out down 3.16%. Taxes on its exports to the US have been slapped with a 24% tax.
Seeing the second sharpest fall in Asia is the an index tracking the performance of the largest companies in Asia – the FTSE CNBC Asia 100 Index – lost 1.9% so far.
Unsurprisingly, Chinese stocks lost big. After tariffs on the country rose to 34%, Hong Kong’s Hang Seng Index shed 1.76%, while the SZSE component index of 500 companies traded on China’s Shenzhen Stock Exchange dropped 1.4%.
Only New Zealand and Taiwan saw growth in their benchmark indexes, with just small rises.
European stock futures have plunged after the new US import taxes imposed last night.
EuroSTOXX50 and DAX futures both fell around 2.3% by 6.58am (UK time), while FTSE 100 futures were down around 1.7%.
By Neville Lazarus, India reporter, in New Delhi
President Trump slapped a 26% tariff on India, calling it a discounted rate against an average 52% duty on American products. The tariffs are lower than many Asian countries are facing from the US – for example, Vietnam (46%), Thailand (36%), Taiwan and Indonesia (32%).
America is India’s largest trading partner with bilateral trade of about $130bn in 2024. But there is a trade deficit of $46bn in favour of India.
An exemption for pharma firms
A key sector left untouched is pharmaceuticals. India is one of the largest exporters to the US and supplies nearly 47% of all generic pharmaceuticals to American patients. Tariffs on these will drive up costs – which will most likely be passed on to US consumers.
India’s efforts to woo Trump – and ongoing US concerns
The Indian government has taken steps to win over Trump by lowering tariffs on motorcycles, bourbon and digital services for US tech giants – but the president wants more.
A bilateral trade agreement is being negotiated between the two countries, which could provide India relief in the future.
Liberation day is here, but will Trump’s tariffs save America? On Day 74, US correspondents Mark Stone and James Matthews discuss what the new tariffs mean for the US and the world.
And, with Elon Musk’s funding of the Wisconsin Supreme Court race falling short, is the shine the billionaire brings to Trump’s administration starting to rub off?
If you’ve got a question you’d like Mark, Martha, and James to answer, you can email it to trump100@sky.uk.
Remember to tap here to follow Trump 100 wherever you enjoy your podcasts, so you don’t miss an episode.
French President Emmanuel Macron is set to convene all representatives of business sectors hit by the US import tariffs at Elysee Palace in Paris later today.
As we’ve been reporting, Donald Trump unveiled a 10% minimum tariff on most goods imported to the US – with a higher 20% rate for the European Union.
The French wine and spirits industry had already been under pressure, with exports globally falling for the second consecutive year in 2024 due to threats of US tariffs, a softer Chinese market and lower prices.
The FEVS, the company in charge of French wine exports, has described the 20% tariff on EU beverages as colossal.
“It will have a very significant impact on business in the United States – a very significant impact on the American
consumer,” FEVS chairman Gabriel Picard said.
The US is the largest market for French wine and spirits, with shipments to the US rising 5% in 2024 to $4.12bn.
By Helen-Ann Smith, Asia correspondent in Beijing
China was expecting further tariffs and it will have been preparing, but no degree of preparation could effectively counter the immediate impact this latest round of tariffs will have on China’s economy.
Once you add together tariffs levied earlier this year to those still in place from Trump’s first term, all Chinese goods will now face import taxes of over 50%, some potentially as high as 70%.
Such levels realistically render trade with America all but impossible for the vast majority of businesses.
Given exports account for 20% of China’s entire economy and trade with America makes up about 15%, the impact will be huge and wide reaching.
Experts are already predicting job losses could be in the millions, swathes of small businesses that populate China’s complex supply chains could go under, and there is a high chance China’s growth target of around 5% will be missed.
For a country already grappling with a slowing economy and high unemployment, it all amounts to a serious challenge.
Wider Asian tariffs a roadblock on usual Chinese workarounds
There’s a sense people have been particularly caught off guard by the targeting of other smaller Southeast Asian economies.
Reciprocal tariffs of 46% on Vietnam , 49% on Cambodia and 36% on Thailand are not only catastrophic for those lower-income economies, but they also put a hard roadblock on an increasing trend of Chinese companies relocating to avoid tariffs – even workarounds are now not an option.
The impact on Asia as a broader region was reflected in the markets, which were lower on opening, and a significant slide in the futures trading. Leading regional economies Japan, South Korea and Indonesia have also taken big hits.
There will almost certainly be frenetic negotiations under way behind the scenes, but China will absolutely need to be seen to respond.
The ministry for commerce has already said as much in a statement.
The question is when and how far it will go.
Authorities here can ill afford further escalation, but will not want to be seen to be bullied.
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