Trump tariffs latest: US President unleashes sweeping tariffs on UK and rest of world in 'major blow to global economy'

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Donald Trump ignited a global trade war as he unveiled tariffs on imports from around the world, including a 10% levy on the UK.

The US President unveiled a suite of tariffs as part of his “Liberation Day” announcement, which will undo trade arrangements that have been in place since 1947.

He accused other countries, including allies, of “looting, pillaging, raping and plundering” the US – and claimed the tariffs would bring jobs “roaring” back to the country.

In an extraordinary speech at the White House Rose Garden, Trump unveiled a baseline minimum 10% tax on all imports into America, to come into effect from April 5, as he declared a “national emergency”.

Britain escaped with tariffs no higher than that base minimum following days of intense lobbying from Sir Keir Starmer’s Government.

But the announcement, set to have huge implications for the global economy, sees the US impose larger levies on some of America’s biggest allies: a 20% charge on imports from the European Union, 24% tariffs on Japan, 25% on South Korea.

Asian markets were sharply down on Thursday morning as global leaders absorbed the news.

The 20% tariffs on the EU drew a sharp rebuke from European Commission President Ursula von der Leyen, who said the announcement was a “major blow to the world economy”.

“The consequences will be dire for millions of people around the globe,” she said. Groceries, transport and medicines will cost more, she said, while visiting Uzbekistan, “and this is hurting, in particular, the most vulnerable citizens.”

The UK government said the United States remains Britain’s “closest ally”. Business Secretary Jonathan Reynolds said the UK hoped to strike a trade deal to “mitigate the impact” of the 10% tariffs on British goods.

“Nobody wants a trade war and our intention remains to secure a deal,” said Mr Reynolds. “But nothing is off the table and the government will do everything necessary to defend the UK’s national interest.”

Trump revealed the tariffs by holding up a board showing a chart with different countries that resembled a league table.

The highest tariffs – 49% – was imposed on Cambodia while a 46% charge was imposed on imports from Vietnam.

The president said: “The numbers are so disproportionate, they’re so unfair.

“We’re going to have a minimum of cheating.

“Countries will finally be asked to pay for the privilege of access to our market, the biggest market in the world.”

Trump also confirmed that from midnight in Washington, a 25% 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.

The president also hit out at “exorbitant” VAT rates, which he views as a barrier to US firms seeking to sell into markets such as the UK where the taxes apply.

Trump said: “April 2, 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again.”

The Federation of Small Businesses (FSB) warned that the 10 per cent tariff was a “major blow” to small and medium British businesses. Currently, 59% of small UK exporters sell into the US market.

“Tariffs will cause untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat,” Tina McKenzie, the FSB’s policy chair said.

“The fallout will stifle growth, hurt opportunities, and put a serious dent in the global economy.

“The UK Government should now be ready to provide emergency assistance to any SMEs at risk of collapse.”

Liberal Democrat leader Sir Ed Davey accused Trump of launching a “destructive trade war” that “threatens the jobs and living standards of people across the UK and around the world”.

“We need to end this trade war as quickly as possible – and that means standing firm with our allies against Trump’s attempts to divide and rule,” he said.

Trump had kept the world guessing on the details ahead of a White House Rose Garden announcement ceremony that began at 9pm GMT.

In his speech, Trump said: “Jobs and factories will come roaring back into our country. We will break down foreign trade barriers… More production at home will mean stronger competition and lower prices for consumers. This will be the golden age for America.”

Economists have warned that tariffs could slow the global economy, raise the risk of recession, and increase living costs for the average US family by thousands of dollars. Businesses have complained that Trump’s barrage of threats has made it difficult to plan their operations.

European stocks languished on Wednesday with investors “jittery” ahead of the tariff announcements, which have sent markets into a spin over recent weeks.

In London, the FTSE 100 weakened with housebuilders among the day’s biggest fallers. The blue-chip index closed 26.32 points lower, or 0.3%, at 8,608.48 on Wednesday.

Chancellor Rachel Reeves said the UK would not jeopardise the possibility of an economic deal with Trump’s US by “posturing” in response to the president’s tariffs.

The Chancellor told MPs she had been speaking to exporters who did not want a rushed response.

She said: “We don’t want to be posturing here, the prize on offer is a good economic agreement between us and the United States”.

“We are not going to do anything to put that in jeopardy, we are not going to rush into action to get a quick headline.”

However, the European Union has threatened to push back against Trump’s tariffs and it retaliated against his trade taxes during his first term in the White House.

Ms Reeves told the Treasury Committee: “Let’s see how other countries and other trading blocs respond.” She added: “We are discussing with other countries and the EU about the appropriate response to whatever announcements are made later today.”