What we know so far
71% of Britons back retaliatory tariffs
A majority of Britons support retaliatory tariffs against the US, according to a YouGov EuroTrack survey published today.
The study, carried out between March 6 and March 24, found that 71 per cent supported retaliatory levies — more than in Spain, France, Germany or Italy.
Following the Trump administration’s outspoken desire to take control of Greenland, Danes were the most in favour at 79 per cent, while Italians were the least likely to support tariffs on America with 56 per cent — still a majority of the population — in favour.
Why members of Trump’s own party fear his tariffs
Republicans are growing increasingly nervous about President Trump’s imposition of sweeping tariffs on what he is calling “liberation day”.
Members of Congress representing rural areas are worried about the impact of any rise in fertiliser costs on farmers, while those from northern states are anxious that a trade war with Canada will disrupt cross-border industries from lumber to fresh produce.
The White House said Trump would make his tariff announcement in the Rose Garden to selected guests on Wednesday at 4pm ET (9pm GMT), the moment stock markets close in America.
• Read in full: Why members of Trump’s own party fear his tariffs
Inflation hit to UK will be less than feared, says Bank
Economists at the Bank of England have said that the effect of Trump’s tariffs on inflation in the UK will depend on how other countries respond with their own trade policies, and how foreign exchange rates are affected.
Swati Dhingra, a member of the Bank’s monetary policy committee (MPC), suggested that the inflation impact could be “less than feared”.
This was because the main goods that the US imports from the UK, including refined oil, were unlikely to be hit by cost increases on account of tariffs.
Megan Greene, another MPC member, suggested tariffs that could even end up being “disinflationary”, meaning they help bring down the rate of overall price rises in the UK.
This is because businesses hit by duties may seek to compete in other markets, such as Britain, instead.
Don’t sell us out, plead British farmers
Farmers have urged the government not to “sacrifice” British agriculture to seal a US trade deal.
Jonathan Reynolds, the business secretary, earlier told Times Radio that food standards were a “red line” in trade talks for the UK, suggesting the country would not accept US hormone-treated beef and chlorine-washed chicken. However, the government could compromise in other areas, such as eliminating tariffs of up to 12 per cent on US beef, chicken and pork.
This would give American producers, which have lower standards and a competitive advantage, greater access to the UK market and put domestic farmers under pressure. Tom Bradshaw, president of the National Farmers’ Union, said the sector had an “absolute expectation that [ministers] cannot sacrifice agriculture at this moment in time to the benefit of other sectors”.
Stock markets recover after tariff sell-off
Global stocks have bounced back after tariff uncertainty caused a slump in the financial markets yesterday.
Levies continued to be at the forefront of investors’ minds before President Trump’s “liberation day” announcement tomorrow, in which tariffs are expected to be imposed on some of the US’s closest allies.
London’s FTSE 100 moved higher today, up 0.61 per cent from yesterday.
While it was a choppier start to trading in New York, the S&P 500 was up 0.4 per cent at lunchtime on the east coast, and the Dow Jones edged up 0.1 per cent despite starting the day slightly lower.
Mercedes denies plan to stop selling cheap models
Mercedes-Benz denied that it was considering withdrawing its cheapest models from the US before a 25 per cent tariff to be imposed on auto imports tomorrow.
Bloomberg said the carmaker was considering pulling more entry-level models from sale as part of broader contingency planning for tariffs.
A spokesman said: “This is without any merit. Mercedes-Benz continues to seek sales growth for its highly desirable vehicles.”
Karoline Leavitt, the White House press secretary, confirmed earlier that Trump’s wide-ranging tariffs would be “effective immediately” after an announcement tomorrow. The tariff on automakers was announced last week and will also come into force tomorrow.
Will Trump’s tariffs help the US? We’ll know long after he’s gone
Analysis by Irwin Stelzer
The monetary policies of the Federal Reserve board chairman Jerome Powell are contingent on incoming data. The tariff policies of Donald Trump are contingent on incoming whims. So it is not without risk to discuss what the US president has in mind for April 2, what he calls “liberation day”, before he announces his final decisions. But here goes.
Trump has moved from a pledge to destroy the global trading system to an aim for reciprocal tariffs, no exceptions; to there will not be “too many exceptions”; to tariffs will “probably be more lenient than reciprocal … very nice”.
We have moved from a report that “sector-specific tariffs [are] unlikely”, to layering permanent 25 per cent tariffs on to the current 2.5 per cent charged on autos and light trucks “not made in the United States”. The pharmaceutical, copper, computer chip and lumber sectors are among those set to be hit on Wednesday.
Read in full: Will Trump’s tariffs help the US? We’ll know long after he’s gone
Ridiculous to cancel Trump visit, says Rayner
Angela Rayner said it would be “ridiculous” to cancel Trump’s unprecedented second state visit.
“I don’t think that’s where we’re at at all,” she told Jeremy Vine on BBC Radio 2. “It’s not about who visits the King or not. It’s about putting the British interest first.”
It comes as the UK prepares for US tariffs to be imposed on exports tomorrow. Earlier, Downing Street dismissed calls to cancel Trump’s visit.
Downing Street said: “You’ll have seen that the prime minister was delighted to extend His Majesty the King’s invitation for a historic state visit during his visit to to the White House.”
‘Only way to avoid tariffs is moving production to US’
Asked if there were still measures that countries could take to ward off the tariffs, the White House press chief said that President Trump was “always open to taking calls” but was focused on “fixing the wrongs of the past”.
Karoline Leavitt suggested that the only way to avoid tariffs was for companies to move production to the United States.
“[Companies in other countries] will face no tariffs at all if these companies choose to invest here in the United States and to move their production and their manufacturing here to the United States as well,” Leavitt said. “As for tomorrow, the president will be addressing the decades of unfair trade practices that have ripped our country off and American workers off.”
Trump ‘cares most about US’
The White House press secretary has claimed that President Trump “cares most” about the US as other countries scramble to secure exemptions from his tariffs.
Karoline Leavitt said: “I can tell you there have been quite a few countries who have called the president and have called his team in discussion about these tariffs.
“But again there is one country that the president cares most about and it is the US and doing what is best for the people who elected him to this office to restore their jobs, their wealth and their prosperity.”
Leavitt also dismissed Wall Street’s turbulent reaction to Trump’s economic policies, claiming the markets were merely “a snapshot in time”.
“Yesterday Dow futures were up, and there’s been a lot of talk about the market — and it was up yesterday,” she said.
• Read more: Markets tremble as Trump’s ‘liberation day’ looms
What the Trump Slump means for your money
Falls in the value of US shares are prompting many investors to bag a bargain, while others are moving into different markets.
America’s S&P 500 index is down about 5 per cent this year while the tech-heavy Nasdaq index is down 10 per cent as markets prepare for fresh US tariffs on Wednesday — a day President Trump is calling “liberation day“.
But what does that mean for your portfolio or your pension? Ali Hussain outlines your options to profit without taking too much risk.
• Read in full: What the Trump Slump means for your money
‘Trust Trump to lower inflation’
Karoline Leavitt added that Americans should “trust” Trump to restore the low inflation seen in his first term.
Speaking to reporters earlier, she said that his “liberation day” announcement “will be addressing the decades of unfair trade practices that have ripped our country off and American workers off”.
She said: “It has hollowed out our middle class. It has destroyed our heartland and the president is focused on reshifting our global economy to ensure that America is once again the manufacturing superpower of the world.”
• Read more: What will happen on ‘liberation day’? Only one man seems to know
Levies will be immediate, confirms US
Trump’s tariffs “will be effective immediately”, Karoline Leavitt, the White House press secretary, said.
Confirming there would be no announcement today, she said the best way to avoid tariffs was for foreign businesses to relocate to the US.
“American workers and businesses will be put first under President Trump,” she said.
“The president’s historic action tomorrow will improve American competitiveness in every area of industry, reduce our massive trade deficits and ultimately protect our economic and national security.
“America will offer companies the lowest taxes, energy costs, regulations if they make their products right here in the United States and hire American workers for the job. It’s simple. If you make your product in America, you will pay no tariffs.”
Tariffs will ‘restore golden age of America’
Karoline Leavitt, the White House press secretary, has claimed that President Trump’s tariffs will restore a “golden age of America” during a news briefing today.
Asked by a reporter if the administration was confident that its levies would be successful, she said: “It is going to work, and the president has a brilliant team of advisers who have been studying these issues for decades.
“We are focused on restoring the golden age of America, and making America a manufacturing superpower.”
Leavitt went on to claim that “investments have already trickled into the country” and that billions of dollars in private investments were “pouring into American communities”.
She added that Trump would provide further details during his tariff announcement press conference tomorrow.
What will happen on ‘liberation day’ — and how can we respond?
President Trump has called tomorrow “liberation day”, when he will set out his plans to impose sweeping tariffs on goods exported to the United States from other countries.
Trump is said to favour a universal tariff of between 10 and 20 per cent on all imported goods — regardless of the country of origin.
At 20 per cent the tariffs would add £12 billion to the cost of the UK’s £60 billion annual exports to America.
But, as with everything from the Trump administration, uncertainty abounds and Whitehall officials are said to have worked up “dozens” of scenarios for what the tariff regime could mean for Britain — and how the government might respond.
Read our dissection of the most likely options.
US tariffs are failure of trade policy, say Tories
Andrew Griffith, the shadow business secretary, has said that the impending imposition of US tariffs on British exports represents the “worst failure of trade policy for a generation”.
The expected wide-ranging levies due to be announced tomorrow come as British steel exports to the US already face a 25 per cent tax after President Trump ordered a new levy in March.
Griffith said: “Tomorrow we understand that tariffs will be imposed by the United States on British exporters.
“If that is the case, that would be the worst failure of trade policy for a generation. It is businesses, jobs, our economy, who are all going to be paying the price.
“The chancellor’s emergency budget will not have lasted a single week because she made no provision for the imposition of tariffs, if that is indeed what is to come.”
No 10 refuses to comment on Trump visit plans
Downing Street would not be drawn on whether the invitation for President Trump to make a state visit to the UK could be withdrawn if no trade deal is agreed.
Asked whether the invitation could be revoked, the prime minister’s official spokesman said today: “I wouldn’t draw any any link between the two. Obviously, the state visit is a matter for the Palace, as you know.
“You’ll have seen that the prime minister was delighted to extend the King’s invitation for a historic state visit during his visit to to the White House.
“But when it comes to these talks, we’ll obviously continue to have these conversations.
“We’ll obviously continue them in the national interest, and we’ll obviously provide an update as and when we have one.”
UK firms cut jobs as demand slows
British businesses have been cutting jobs in anticipation of slower demand after Trump’s tariff announcement, with smaller companies particularly squeezed, survey data from S&P Global has revealed.
Matthew Swannell, chief economic adviser to the EY Item Club, a forecasting group, said: “US tariffs on goods imports from the UK could rise tomorrow, with survey respondents indicating that the possibility of higher tariffs is already weighing on demand for exported goods.”
He said the prospect of levies, coupled with weak domestic demand, is “seeing the sector cut jobs”.
This month the Organisation for Economic Co-operation and Development said that US trade policy would be a “drag on global activity” and hit living standards around the world.
Impact ‘will be felt on banks, mortgages and pensions’
While the UK may avoid the worst of Trump’s sweeping tariffs, experts warn that Britain is still sensitive to levies that could impact the world economy.
Myron Jobson, senior personal finance analyst for Interactive Investor, said: “President Donald Trump’s tariffs war could have far-reaching consequences for Britons, even if the UK manages to escape direct levies.
“If tariffs contribute to higher inflation, central banks may be forced to tighten monetary policy, which can weigh on bonds and borrowing costs.”
Jobson warned this could slow economic growth, impacting mortgage rates and corporate investments.
“For investors with exposure to US equities — either directly or through pension funds and Isas — this could translate into market turbulence,” he added.
Tariff announcement scheduled for tomorrow
President Trump will make his “liberation day” announcement in the White House’s Rose Garden at 4pm tomorrow, when stock markets close in New York, it has been announced.
He raised anticipation yesterday evening that he would make some kind of announcement today but it seems that he has stuck with his plan not to set out tariffs on April Fool’s Day due to his superstitious nature.
Asked on Monday whether he would impose an across-the-board levy or take an individual sector and country approach, he appeared to lean towards the latter, saying: “You’re going to see in two days, which is maybe tomorrow night or probably Wednesday, you’re gonna see. They’re reciprocal, so whatever they charge us, we charge them, but we’re being nicer than they were.”
The announcement was billed by the White House as a “Make America Wealthy Again” event.
Firms rush imports to beat levies
Exporting companies around the world have been rushing deliveries to beat Trump’s “liberation day” and some are already said to be planning to cut back on staff and production.
Several of America’s top trading allies, notably the EU and Canada, have vowed to fight back with reciprocal tariffs in an arms race that Trump has indicated he will escalate with further measures of his own.
Given the seismic global impact of similar American protectionist moves a century ago, albeit in worse economic times, the world is bracing for far-reaching consequences from a potential trade war.
Tariffs will affect UK, Reeves tells cabinet
President Trump’s tariffs will have an impact on the UK economy, Rachel Reeves told cabinet ministers today as global markets brace themselves for the US’s import tax plan.
Sir Keir Starmer acknowledged that Britain was unlikely to be spared, despite efforts to preserve the two nations’ “special relationship”.
Reeves, the chancellor, told cabinet that the effect of tariffs would be felt in Britain because it is an “open trading economy”.
But she added that “securing a deal could mitigate some of those effects”.
Lammy warns UK to prepare for the worst
David Lammy has said that the UK must “prepare for the worst” over tariffs from the US as “intense conversations” continue.
Calum Miller, the Lib Dem foreign affairs spokesman, asked him in the Commons: “Does the foreign secretary agree that in addition to a robust response to the White House, the best step the government can take to support British businesses would be to start talks on a bespoke UK-EU customs union without delay?”
Lammy, the foreign secretary, replied: “We are an open-trading nation. We have been that under successive governments. It’s hugely important at this time that we continue the intense conversations we’re having with the US administration on getting an economic agreement but of course we prepare for the worst — all options remain on the table, as the prime minister indicated again just yesterday.
“But it’s also right that the business secretary and I and others across government continue to engage with business and industry so we can give them the best support at what will be a turbulent economic time, not just for our own country but of course much of the world.”
