Stock markets are braced for more volatility as the US president prepares to unveil a swathe of new levies tomorrow. The measures could include tariffs of around 20% on most imports, according to reports. Listen to Trump 100 as you scroll.
Tuesday 1 April 2025 18:48, UK
Donald Trump’s plans for 25% tariffs on all foreign-made cars entering the US are worrying countries around the world.
The same tariff is also planned for foreign-made car parts entering America.
Trump has suggested the way around this for drivers in the US is simple – buy American.
“If you make your car in the United States, you’re going to make a lot of money,” he told Sky’s US partner network NBC News in an interview on Saturday.
“If you don’t, you’re going to have to probably come to the United States, because if you make your car in the United States, there is no tariff.”
He also said he “couldn’t care less” if car manufacturers increase prices as a result – hence the global anxiety about the knock-on effects.
But NBC News is also reporting the president’s logic is flawed – as there’s no such thing as a fully American-made car.
‘A fictional tale’
Dan Ives, the global head of technology research at Wedbush Securities, a financial services firm, told NBC: “Even US-assembled automobiles by major American brands rely heavily on complex global supply chains for the roughly 30,000 parts that make up the average car.
“Overall, the percentage of auto parts that are sourced abroad hovers around 40%.”
He added: “US-made cars with all US parts is a fictional tale.”
A senior executive in the car-making industry, who asked to speak anonymously to avoid disrupting sensitive negotiations with the Trump administration, also expressed concerns to NBC about the industry’s ability to adapt to tariffs because of global supply chains.
Even Tesla, which is run by Trump adviser Elon Musk and assembles its vehicles in the United States, sources 20-25% of its parts from Mexico, according to the country’s National Highway Traffic Safety Administration.
Read the NBC story in full below…
We have an update to bring you now on talks over the Chagos Islands.
Negotiations to hand over sovereignty of the archipelago to Mauritius in exchange for a lease on a UK-US military base are in their final phase, Downing Street has said.
The deal is being “finalised” after approval from Donald Trump’s team, although discussions are ongoing between the UK and the Mauritian government over its exact terms.
“The finalisation of the deal is ongoing,” the PM’s official spokesman told journalists.
Sky News understands the UK is not waiting on any further action from the US on the deal.
Trump indicated his backing for the deal during Sir Keir Starmer’s visit to Washington in February, saying: “I have a feeling it’s going to work out very well”.
A deal was originally announced last year, but a change of government in Mauritius and the return of Trump to the White House put the agreement in doubt.
The government argues it has to give up sovereignty of the territory due to international legal rulings in favour of Mauritius.
We’ll find out about the full scale of Donald Trump’s tariffs in about 24 hours, according to the White House’s press secretary, to avoid an awkward April Fool’s Day announcement.
Right now, Trump is meeting with his trade and tariffs team to finalise the details.
While we wait for the full package, here’s what’s already been announced:
Donald Trump told our US partner network NBC News on Sunday he is growing frustrated with Vladimir Putin as a peace deal drags on.
White House press secretary Karoline Leavitt says he is frustrated with “leaders on both sides”.
She says the war has gone on for too long, with many dying on both sides.
The news conference has now wrapped up.
Karoline Leavitt is asked about the “accidental” deportation of a legal US resident to El Salvador after he fled the country in 2011 following threats from gangs.
As we reported earlier, US officials have argued there is no legal framework to bring Kilmer Abrego-Garcia back – see our 17.00 post.
“It was an administrative error,” Leavitt says.
“The administration maintains the position that this individual, who was deported to El Salvador and will not be returning to our country, was a member of the brutal and vicious MS-13 gang,” she says.
“We also have credible intelligence proving that this individual was involved in human trafficking.”
She did not provide any evidence to back up the claim.
Pushed on the claims in another question, a reporter points out that a judge ordered Garcia to remain in the US in 2019.
The journalist asks: “So are you saying it’s OK to ignore a judge’s ruling if you don’t like it?”
Leavitt says the judge works for the Department of Justice – and the Attorney General is “committed” to eradicating MS-13.
We’ve been reporting on impending tariffs expected to kick in tomorrow, on what the White House describes as “liberation day”.
Press secretary Karoline Leavitt says it will go down “as one of the most important days in modern American history”.
“Our country has been one of the most open economies in the world, and we have… hands down, the best consumer base.”
Leavitt adds: “But too many foreign countries have their markets closed to our exports. This is fundamentally unfair.
“The lack of reciprocity contributes to our large and persistent annual trade deficit that’s gutted our industries and hollowed out key workforces.”
She also vows that the days of the US being “ripped off” are “over”.
We still don’t know the details of the new tariffs – but Leavitt says we will find out “in about 24 hours from now”.
They’ll also take effect immediately, she adds.
White House press secretary Karoline Leavitt says border crossings are at historic lows.
“On another note, at our southern border, there is more massive news,” she says.
“Southwest border crossings in March fell to the lowest level in American history.”
Levels are down 94%, she says, from March last year.
She has not yet made mention of the migrant wrongly deported to El Salvador, as we reported in our 17.00 post.
Leavitt also confirms that a fourth US soldier has been found dead in Lithuania following a training exercise accident.
It comes after three other military members died when their armoured vehicle became submerged in a peat bog.
There’s a news conference happening now at the White House, with tomorrow’s tariffs and “liberation day” expected to be among the issues addressed.
We’ll share relevant updates here – you can also watch along for yourself in our live stream below.
Donald Trump’s administration deported a legal resident of the US to El Salvador following an “administrative error” – leaving him stranded with no legal way back.
Kilmer Abrego-Garcia was 16 when he arrived in the US in 2011 after fleeing threats from gangs in El Salvador.
He was supposed to have been protected from deportation by a 2019 court order preventing him from being sent back to his home country.
But, in court papers filed yesterday, the US government admitted that “on March 15, although ICE [US Immigration and Customs Enforcement] was aware of his protection from removal to El Salvador, Abrego-Garcia was removed to El Salvador because of an administrative error”.
The filing said Abrego-Garcia lived in Maryland with his wife and five-year-old child, who is autistic and intellectually disabled, and the couple had both been working full-time.
Footage showed migrants deported to El Salvador
In the court papers, an ICE official said Abrego-Garcia had been put on a deportation flight under the 1798 Alien Enemies Act.
“This was an oversight, and the removal was carried out in good faith based on the existence of a final order of removal and Garcia’s purported membership in MS-13,” the filing said.
The Trump administration has claimed there is no legal mechanism to bring him back to the US, leaving him in a mega-prison in El Salvador, which his lawyers labelled a “notorious torture chamber”.
Officials insisted they could not act to bring him back because the US “lacks jurisdiction because Abrego Garcia is not in United States custody”.
For context: The Trump administration has invoked an 18th-century law to deport Venezuelans and Salvadorans it alleges are violent gang members.
The move is part of a sweeping crackdown on immigration. The White House appeared to celebrate the deportations on its social media channels.
Representatives for some deportees have rejected any ties to gangs, and courts have temporarily blocked the use of the law amid legal challenges.
A senator frustrated with Donald Trump’s policies is holding a marathon speech – which is now stretching into its 16th hour.
Cory Booker’s delaying tactic aims to highlight what he described as the “recklessness” of the Republican’s administration.
The visibly exhausted 55-year-old started his speech on Monday night, vowing to stay there as long as he was “physically able”.
He said: “These are not normal times in our nation. And they should not be treated as such in the United States Senate.
“The threats to the American people and American democracy are grave and urgent, and we all must do more to stand against them.”
On Tuesday morning, he received help from Democratic colleagues, who gave him a break from speaking by asking him questions – while also allowing him to keep his place on the Senate floor.
At about 4pm UK time, he passed his 16th hour – making it among the longest such speeches in US political history.
The current record was set by Strom Thurmond of South Carolina, who spoke for 24 hours and 18 minutes against the Civil Rights Act of 1957.
You can keep up with his speech in the live stream below…
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