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What are tariffs, why is Trump using them, and will prices rise? What are tariffs, why is Trump using them, and will prices rise?
(33 minutes later)
Watch: What is a tariff? The BBC's Adam Fleming explainsWatch: What is a tariff? The BBC's Adam Fleming explains
The US has introduced a 25% tariff on all steel and aluminium imports from around the world.The US has introduced a 25% tariff on all steel and aluminium imports from around the world.
In response, the EU has said it will impose tariffs on US goods worth billions of dollars, stoking fears of a global trade war.In response, the EU has said it will impose tariffs on US goods worth billions of dollars, stoking fears of a global trade war.
President Donald Trump Trump has already imposed 25% tariffs on other imports from Mexico and Canada - with some exemptions - and a 20% levy on Chinese goods.President Donald Trump Trump has already imposed 25% tariffs on other imports from Mexico and Canada - with some exemptions - and a 20% levy on Chinese goods.
But he chose not double the levy for Canadian metal imports, just hours after first threatening to do so.But he chose not double the levy for Canadian metal imports, just hours after first threatening to do so.
Live: EU retaliates after Trump tariffs on steel and aluminium take effect Live: Trump trade war intensifies as EU, Canada and China hit back vowing strong response to tariffs
What are tariffs and how do they work?What are tariffs and how do they work?
Tariffs are taxes charged on goods imported from other countries.Tariffs are taxes charged on goods imported from other countries.
The companies that bring the foreign goods into the country pay the tax to the government.The companies that bring the foreign goods into the country pay the tax to the government.
Typically, tariffs are a percentage of a product's value. A 20% tariff on Chinese goods means a product worth $10 (£7.76) has an additional $2 charge.Typically, tariffs are a percentage of a product's value. A 20% tariff on Chinese goods means a product worth $10 (£7.76) has an additional $2 charge.
Firms may choose to pass on some or all of the cost of tariffs to customers.Firms may choose to pass on some or all of the cost of tariffs to customers.
The US has typically charged lower tariffs on goods than other countries.The US has typically charged lower tariffs on goods than other countries.
Trump's new tariffs - and his promise to introduce further "reciprocal" levies on goods from other countries - could lead to a sharp increase in the prices people pay for goods in the US and around the globe.Trump's new tariffs - and his promise to introduce further "reciprocal" levies on goods from other countries - could lead to a sharp increase in the prices people pay for goods in the US and around the globe.
BBC reporters answer your tariff questionsBBC reporters answer your tariff questions
Why is Trump using tariffs?Why is Trump using tariffs?
Tariffs are a central part of Trump's economic plans. He says tariffs will boost US manufacturing and protect jobs, as well as raising tax revenue and growing the economy. Tariffs are a central part of Trump's overall economic vision.
Goods from China, Mexico and Canada accounted for more than 40% of imports into the US in 2024. He says tariffs will boost US manufacturing and protect jobs, raising tax revenue and growing the domestic economy.
He also wants to restore America's trade balance with its foreign partners - reducing the gap that exists between how much the US imports from and exports to individual countries.
But he has refused to rule out the prospect of a recession as a result of his trade policies, which sent US stocks sharply down in the days before the metal tariffs took effect,
US Commerce Secretary Howard Lutnick later said the tariffs were "worth it" even if they did lead to an economic downturn.
Trump's tariffs initially targeted goods from China, Mexico and Canada.
These accounted for more than 40% of imports into the US in 2024.
But Trump has accused the three countries of not doing enough to end the flow of migrants and illegal drugs such as fentanyl into the US.But Trump has accused the three countries of not doing enough to end the flow of migrants and illegal drugs such as fentanyl into the US.
All three countries have rejected the accusations.All three countries have rejected the accusations.
Fentanyl is linked to tens of thousands of overdose deaths in the US each year.Fentanyl is linked to tens of thousands of overdose deaths in the US each year.
Outgoing Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US, most of which comes from Mexico.Outgoing Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US, most of which comes from Mexico.
How Japan sparked Trump's 40-year love affair with tariffs
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Trump's tariffs risk economic turbulence - and voter backlashTrump's tariffs risk economic turbulence - and voter backlash
Faisal Islam: Trump is no longer swayed by the stock markets
Is the US really heading into a recession?
How do the steel and aluminum tariffs work and how have other countries reacted?How do the steel and aluminum tariffs work and how have other countries reacted?
The 25% tariffs on all US imports of steel and aluminum began on 12 March.The 25% tariffs on all US imports of steel and aluminum began on 12 March.
The US buys more steel than any other country - with Canada, Brazil and Mexico its top three suppliers.The US buys more steel than any other country - with Canada, Brazil and Mexico its top three suppliers.
Canada is also the largest supplier of aluminum to the US, providing almost 60% of the amount imported.Canada is also the largest supplier of aluminum to the US, providing almost 60% of the amount imported.
When Trump first announced the tariff on steel and aluminium imports, he said there would be no exceptions.When Trump first announced the tariff on steel and aluminium imports, he said there would be no exceptions.
On 11 March, he threatened to double the levy for Canadian metals because of that country's decision to charge more to electricity customers in three northern US states, in response to other US tariffs.On 11 March, he threatened to double the levy for Canadian metals because of that country's decision to charge more to electricity customers in three northern US states, in response to other US tariffs.
Trump scrapped this plan just hours before it was due to take effect, after Canada agreed to suspend the extra energy charges.Trump scrapped this plan just hours before it was due to take effect, after Canada agreed to suspend the extra energy charges.
In the hours after the levy took effect, the EU announced retaliatory tariffs on US goods worth €26bn (£22bn).In the hours after the levy took effect, the EU announced retaliatory tariffs on US goods worth €26bn (£22bn).
These will start on 1 April and be fully in place on 13 April.These will start on 1 April and be fully in place on 13 April.
European Commision President Ursula von der Leyen said she "deeply regrets this measure". Tariffs are "bad for business and worse for consumers", she added.European Commision President Ursula von der Leyen said she "deeply regrets this measure". Tariffs are "bad for business and worse for consumers", she added.
China's foreign ministry said the country would take "all necessary measures" to safeguard its rights and interests, arguing that the tariffs breach World Trade Organization rules. China's foreign ministry said the country would take "all necessary measures" to safeguard its rights and interests, arguing that the tariffs breached World Trade Organization rules.
Australian Prime Minister, Anthony Albanese called the levies "entirely unjustified". Canada's high commissioner to the UK criticised the "lawless trade world of Donald Trump". Ralph Goodale told the BBC that Canada would hit "particularly sensitive" US products in response.
Australian Prime Minister Anthony Albanese called the levies "entirely unjustified".
The UK said the decision to impose the steel and aluminium levy was "disappointing", but has not announced any tariffs in response, despite calls from the steel industry to "act decisively".The UK said the decision to impose the steel and aluminium levy was "disappointing", but has not announced any tariffs in response, despite calls from the steel industry to "act decisively".
The government said it was working towards "a wider economic agreement" with the US.The government said it was working towards "a wider economic agreement" with the US.
Trump previously announced tariffs of 25% on steel and 10% on aluminium in 2018, during his first term as president.Trump previously announced tariffs of 25% on steel and 10% on aluminium in 2018, during his first term as president.
However, he later negotiated exceptions for many countries including Australia, Canada and Mexico.However, he later negotiated exceptions for many countries including Australia, Canada and Mexico.
Despite those previous exemptions, tariffs raised the average price of steel and aluminium in the US by 2.4% and 1.6% respectively, according to the US International Trade Commission.Despite those previous exemptions, tariffs raised the average price of steel and aluminium in the US by 2.4% and 1.6% respectively, according to the US International Trade Commission.
Three American goods that could rise in price due to metal tariffsThree American goods that could rise in price due to metal tariffs
What is happening with tariffs against Canada and Mexico?What is happening with tariffs against Canada and Mexico?
Trump has introduced 25% tariffs on other goods from both US neighbours, Canada and Mexico.Trump has introduced 25% tariffs on other goods from both US neighbours, Canada and Mexico.
These were originally due to start on 4 February but were delayed for a month to allow further negotiations. The 25% tariffs began on 4 March, with a 10% tariff on Canadian energy imports.These were originally due to start on 4 February but were delayed for a month to allow further negotiations. The 25% tariffs began on 4 March, with a 10% tariff on Canadian energy imports.
On 5 March, Trump announced a month-long tariff exemption for cars made in North America which comply with the continent's existing free trade agreement, the US-Mexico-Canada agreement (USMCA).On 5 March, Trump announced a month-long tariff exemption for cars made in North America which comply with the continent's existing free trade agreement, the US-Mexico-Canada agreement (USMCA).
That deal, which was negotiated by Trump during his first term in office, sets out rules for how much of a car must be made in each country to qualify for duty-free treatment.That deal, which was negotiated by Trump during his first term in office, sets out rules for how much of a car must be made in each country to qualify for duty-free treatment.
The Canadian and Mexican tariffs had prompted fears of significant impacts on car manufacturing.The Canadian and Mexican tariffs had prompted fears of significant impacts on car manufacturing.
Component parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.Component parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.
Shares in leading US carmakers rose after the announcement.Shares in leading US carmakers rose after the announcement.
On 6 March Trump expanded the tariff exemption to include other goods shipped under the USMCA.On 6 March Trump expanded the tariff exemption to include other goods shipped under the USMCA.
Items currently covered by the pact's rules include televisions, air conditioners, avocados and beef, according to analysis by the firm Trade Partnership Worldwide.Items currently covered by the pact's rules include televisions, air conditioners, avocados and beef, according to analysis by the firm Trade Partnership Worldwide.
Trump also reduced tariffs on potash - a key ingredient for fertiliser used by US farmers - from 25% to 10%.Trump also reduced tariffs on potash - a key ingredient for fertiliser used by US farmers - from 25% to 10%.
How has Canada responded to US tariffs?How has Canada responded to US tariffs?
Outgoing Prime Minister Justin Trudeau called the tariffs "very dumb", and accused Trump of planning "a total collapse of the Canadian economy [to] make it easier to annex us".Outgoing Prime Minister Justin Trudeau called the tariffs "very dumb", and accused Trump of planning "a total collapse of the Canadian economy [to] make it easier to annex us".
He said Canada would immediately target C$30bn ($21bn; £16bn) worth of US imports, and goods worth a further C$125bn in 21 days.He said Canada would immediately target C$30bn ($21bn; £16bn) worth of US imports, and goods worth a further C$125bn in 21 days.
After Trump excluded more Canadian goods from the tariffs, Finance Minister Dominic LeBlanc said the country would delay the second round of retaliatory taxes.After Trump excluded more Canadian goods from the tariffs, Finance Minister Dominic LeBlanc said the country would delay the second round of retaliatory taxes.
However, Trudeau told reporters that a trade war between the two allies remained likely for the foreseeable future.However, Trudeau told reporters that a trade war between the two allies remained likely for the foreseeable future.
His successor - the incoming Prime Minister Mark Carney - also strongly criticised Trump's "unjustified tariffs", and vowed that "in trade, as in hockey, Canada will win."His successor - the incoming Prime Minister Mark Carney - also strongly criticised Trump's "unjustified tariffs", and vowed that "in trade, as in hockey, Canada will win."
Ontario Premier Doug Ford had said he would bring in a 25% surcharge on Canadian electricity exports to three US states: Michigan, New York and Minnesota in response to the tariffs.Ontario Premier Doug Ford had said he would bring in a 25% surcharge on Canadian electricity exports to three US states: Michigan, New York and Minnesota in response to the tariffs.
But these plans were suspended after Trump's threat to double the tariffs on Canadian steel and aluminium imports.But these plans were suspended after Trump's threat to double the tariffs on Canadian steel and aluminium imports.
Canada hits US with retaliatory tariffs after warning of 'existential threat'Canada hits US with retaliatory tariffs after warning of 'existential threat'
How has Mexico responded to the US tariffs?How has Mexico responded to the US tariffs?
Mexico also delayed retaliatory tariffs on US goods during the initial month-long pause.Mexico also delayed retaliatory tariffs on US goods during the initial month-long pause.
President Claudia Sheinbaum urged Mexicans to "remain calm" over Trump, insisting that "cooler heads will prevail."President Claudia Sheinbaum urged Mexicans to "remain calm" over Trump, insisting that "cooler heads will prevail."
She also agreed to deploy 10,000 troops to the US-Mexico border to help tackle smuggling.She also agreed to deploy 10,000 troops to the US-Mexico border to help tackle smuggling.
Speaking after the tariffs came into force on 4 March, she said the US decision had "no justification", and promised to respond with "tariff and non-tariff measures".Speaking after the tariffs came into force on 4 March, she said the US decision had "no justification", and promised to respond with "tariff and non-tariff measures".
However, before these were set out, Trump announced the concessions for carmakers and other goods, which she welcomed.However, before these were set out, Trump announced the concessions for carmakers and other goods, which she welcomed.
While Trump has been very critical of his Canadian counterpart Trudeau, he has praised Sheinbaum, calling their relationship "very good".While Trump has been very critical of his Canadian counterpart Trudeau, he has praised Sheinbaum, calling their relationship "very good".
As the US and Canada trade barbs, it's so far so good for Mexico's SheinbaumAs the US and Canada trade barbs, it's so far so good for Mexico's Sheinbaum
What is happening with tariffs against China?What is happening with tariffs against China?
A 10% charge on all goods imported from China started on 4 February.A 10% charge on all goods imported from China started on 4 February.
Trump later said shipments worth less than $800 would be exempt.Trump later said shipments worth less than $800 would be exempt.
On 10 February, China responded with its own tariffs, including a 10-15% tax on some US agricultural goods.On 10 February, China responded with its own tariffs, including a 10-15% tax on some US agricultural goods.
Beijing has also targeted various US aviation, defence and tech firms by adding them to an "unreliable entity list" and imposing export controls.Beijing has also targeted various US aviation, defence and tech firms by adding them to an "unreliable entity list" and imposing export controls.
The 10% levy doubled to 20% on 4 March.The 10% levy doubled to 20% on 4 March.
China urged the US to return to dialogue with Beijing as soon as possible.China urged the US to return to dialogue with Beijing as soon as possible.
"If the United States... persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end," foreign ministry spokesman Lin Jian warned."If the United States... persists in waging a tariff war, a trade war, or any other kind of war, the Chinese side will fight them to the bitter end," foreign ministry spokesman Lin Jian warned.
China says it is ready for 'any type of war' with USChina says it is ready for 'any type of war' with US
Can Trump's tariffs break China's grip on manufacturing?Can Trump's tariffs break China's grip on manufacturing?
Which products will be affected and will prices increase?Which products will be affected and will prices increase?
All steel and aluminium imports are being taxed at 25%.All steel and aluminium imports are being taxed at 25%.
Goods from China worth more than $800 are covered by the 20% tariff.Goods from China worth more than $800 are covered by the 20% tariff.
Non-exempt imports from Mexican and Canada are subject to a 25% levy.Non-exempt imports from Mexican and Canada are subject to a 25% levy.
Canadian energy exports to the US face a 10% tariff, which could affect a broad range of businesses.Canadian energy exports to the US face a 10% tariff, which could affect a broad range of businesses.
US tariffs on imported washing machines between 2018 and 2023 increased the price of laundry equipment by 34%, according to official statistics. Prices fell once the tariffs expired.US tariffs on imported washing machines between 2018 and 2023 increased the price of laundry equipment by 34%, according to official statistics. Prices fell once the tariffs expired.
US stocks fell sharply in the days before the metal tariffs took effect, after Trump refused to rule out the prospect of a recession as a result of his trade policies.
US Commerce Secretary Howard Lutnick later said the tariffs were "worth it" even if they did lead to an economic downturn.
Six things that could get more expensive for Americans under Trump tariffsSix things that could get more expensive for Americans under Trump tariffs
Toymakers warn of price risesToymakers warn of price rises
Trump tariffs could be good for some countries, including the UKTrump tariffs could be good for some countries, including the UK
Will the UK and Europe have to pay other tariffs?Will the UK and Europe have to pay other tariffs?
The US has not announced any targeted sanctions against the UK.The US has not announced any targeted sanctions against the UK.
Britain exports pharmaceutical products, cars and scientific instruments to America.Britain exports pharmaceutical products, cars and scientific instruments to America.
Trade Secretary Jonathan Reynolds says the UK is negotiating a broader economic agreement with the US to get rid of tariffs, but no details of this have been announced.Trade Secretary Jonathan Reynolds says the UK is negotiating a broader economic agreement with the US to get rid of tariffs, but no details of this have been announced.
During his 26 February cabinet meeting, Trump said he would announce specific sanctions on EU goods "very soon".During his 26 February cabinet meeting, Trump said he would announce specific sanctions on EU goods "very soon".
"It'll be 25% generally speaking and that will be on cars and all other things," he added."It'll be 25% generally speaking and that will be on cars and all other things," he added.
The US had a trade deficit of $213bn with the EU in 2024 - something Trump has previously described as "an atrocity".The US had a trade deficit of $213bn with the EU in 2024 - something Trump has previously described as "an atrocity".
At the time, the European Commission said it would react "firmly and immediately against unjustified tariffs".At the time, the European Commission said it would react "firmly and immediately against unjustified tariffs".
US companies Harley Davidson and Jack Daniel's have previously faced EU tariffs.US companies Harley Davidson and Jack Daniel's have previously faced EU tariffs.