Donald Trump has revealed his package of tariffs – including a 10% levy on the UK. The British government is relieved it’s not worse but the FTSE 100 has dropped on opening. Follow below for the latest, and listen to Trump 100 analysis as you scroll.
Thursday 3 April 2025 10:02, UK
Live reporting by Bhvishya PatelandAdam McGroarty
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…
Donald Trump sent shockwaves around the world last night when he announced sweeping tariffs, sparking widespread condemnation from all corners of the globe.
If you’re just catching up with our updates this morning, here’s a look at how it’s all unfolded since the announcement…
In case you missed it last night, here’s a reminder of the moment Donald Trump unveiled his big list of tariffs.
Clearly very proud of the chart he was holding aloft, the US president rattled through a long list of countries and what his administration had decided to do on trade with each of them.
He claimed to be offering “discounted” rates for some, laughed about what he called the “pathetic” EU, and got excited when he reached Cambodia.
Watch his obvious glee below…
Australian shares have closed lower today after Donald Trump’s tariffs announcement.
The country’s benchmark S&P/ASX 200 index dropped 0.9% to end at 7,859.7 points. It slid as much as 2.1% earlier in the day.
In Sydney, miners lost 2.3% and BHP Group, Rio Tinto and Fortescue shed 2.5% to 3.5%.
And technology stocks ended 2.9% lower, mirroring the overnight drop in Nasdaq futures.
But the shares weren’t the only thing to take a tumble in Australia today.
As stock markets responded to the swathe of new import taxes, the country’s Prime Minister Anthony Albanese fell off a stage during a campaign event for May’s national election.
The leader of the centre-left Labor Party was posing for photos following his speech at the Mining and Energy Union Conference in New South Wales, when he stepped back and lost his footing, drawing gasps from the audience.
But he quickly recovered and insisted he was “sweet” afterwards.
Donald Trump’s sweeping global tariffs are a “gamble of historic proportions” both politically and economically, our US correspondent James Matthews has said.
He’s been speaking on our latest Trump 100 podcast with Mark Stone, with the pair discussing whether Trump’s tariffs will actually save America like he claims.
But before the US president even emerged at the Rose Garden, the framing that he chose for the moment “was everything,” Stone said.
“This was a show designed by Trump, it was Trump to a T – his moment to seize, the moment to grab the world’s attention.
“My goodness, I think he did.”
But with the swipe of a pen, as Stone described, Trump jolted economies far and wide.
The timing of his announcement can’t have been coincidental either, Matthews added, explaining the 4pm US start time came as markets closed.
“This was economics wrapped up in a political message – America the victim is how he sees it, and how he’s long sold it.”
As the world scrambles to react to the biggest single shift in US economic and foreign policy in decades, why are some in Number 10 feeling “vindication” over Donald Trump’s new tariffs?
As leaders across the world scramble to pick up the pieces this morning and understand what it means politically as well as economically, Sir Keir Starmer is telling a group of business leaders to keep calm and carry on.
Sky News’ Sam Coatesand Politico’s Anne McElvoy talk you through it…
👉Listen to Politics at Sam and Anne’s on your podcast app👈
South Africa’s presidency has called for a new trade deal with the US following Donald Trump’s tariffs.
The country was hit with a 30% tariff by the White House, but the 25% levy on car imports could also impact it badly.
“The tariffs affirm the urgency to negotiate a new bilateral and mutually beneficial trade agreement with the US, as an essential step to secure long-term trade certainty,” the presidency said in a statement.
By Sarah Taaffe-Maguire, business and economics reporter
Similar to many points in the past week, it’s practically red across the board as European stock markets fall.
Past drops have been in fear of what has just occurred – 25% taxes are being levied against European Union goods.
The biggest fall is in Sweden; its benchmark stock index, the OMX Stockholm 30, lost 2.5%.
Denmark’s OMX 25 index is the second worst performer, having dropped 2.5%.
Doing third worst is France’s CAC, which fell 2% at points.
Lisbon’s Euronext stock market provides the only bright spot – it’s gained 0.19%.
It’s just hit 9am and the global economy is continuing to respond to Donald Trump’s flurry of tariffs from last night.
After arriving at the White House Rose Garden, Trump’s move to slap a 10% tariff on most goods imported to the US, as well as much higher levies on dozens of rivals and allies alike, unleashed turbulence across world markets and drew condemnation from leaders.
Here is what you need to know…
By Connor Gillies, Scotland correspondent
The US is the most important foreign drinks market for the Scotch whisky industry.
Whisky is Scotland’s biggest export with £5.4bn sold overseas last year.
Geopolitical trade tensions may feel far away from the tiny distilleries in the hills and glens of Scotland where scotch is produced – but 132 million bottles went to America last year – worth almost £1bn alone.
Insiders were glued to their screens at 9pm on Thursday for the grand unveiling of Trump’s chart at the White House.
They squinted their eyes as they scanned the board to spot “United Kingdom – 10%”.
And with that, they knew they were in line to lose millions.
The industry was bruised by Trump’s first presidency.
A 25% tariff on single malt Scotch was levied for 18 months from 2019 to 2021 and cost the equivalent of over £1m a day.
They are now well acquainted with unpredictable tariffs, and some feel this 10% levy may be slightly more manageable than the scenario facing colleagues in the EU.
Chancellor Rachel Reeves previously promised to make the case that Scotch whisky should be spared from tariffs.
A lot is riding on the hope that this Labour government will turn the talk of a trade deal into reality.
Donald Trump’s MAGA base has been celebrating the imposition of sweeping tariffs.
Marjorie Taylor Greene, who hit headlines last week after snapping at US correspondent Martha Kelner and telling her to go back to her own country (watch that moment below), was among those to praise Trump.
Speaking to former Trump hardliner Steve Bannon on the right-wing Real America’s Voice platform, Taylor Greene said tariffs would “revitalise our country”.
She added that “empty factories” plague her district in Georgia and the days when “America was prosperous, the American family had dreams for the future” have gone.
“Because of decades of ‘America Last’ policies and administrations that cared about serving every other country’s special interests and their own special interests, you know, the American people have been put last,” she said.
“But I can tell you right now, the Americans are going to be rich, and they deserve it. And this is happening today because of President Trump.”
She also shared this message on social media…
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