What are tariffs, why is Trump using them, and will prices rise?
What are tariffs, why is Trump using them, and will prices rise?
(14 days later)
Watch: What is a tariff? The BBC's Adam Fleming explains
Watch: 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.
US President Donald Trump has introduced a series of tariffs targeting goods from other countries.
In response, Canada and the EU have announced new tariffs on US goods worth billions of dollars, stoking fears of a global trade war.
He argues the measures - which make imports more expensive - will help US manufacturers and protect jobs. However, prices could go up for consumers.
President Donald Trump has threatened to impose a 200% tariff on alcohol from EU countries unless the bloc scraps its "nasty 50% tariff on whisky".
Several tariffs announced by Trump have been delayed, amended or scrapped.
Trump has already imposed 25% tariffs on other imports from Mexico and Canada - with some exemptions - and a 20% levy on Chinese goods.
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.
Those announced so far target products including cars, aluminium and steel, and goods from Canada, Mexico and China.
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. For example, a 25% tariff on a $10 (£7.76) product would mean an additional $2.50 charge.
Firms may choose to pass on some or all of the cost of tariffs to customers.
Companies that bring the foreign goods into the country have to pay the tax to the government.
The US has typically charged lower tariffs on goods than other countries.
Firms may choose to pass on some or all of the cost to customers.
Economists fear Trump's new taxes - and the further tariffs on foreign imports that he has suggested may start on 2 April - could lead to a sharp increase in the prices consumers pay in the US and around the globe.
Trump announces 25% tariffs on car imports to US
BBC reporters answer your tariff questions
Why is Trump using tariffs?
Why is Trump using tariffs?
Tariffs are a central part of Trump's overall economic vision.
Tariffs are a central part of Trump's economic vision. He says "tariff" is his favourite word.
He says tariffs will boost US manufacturing and protect jobs, raising tax revenue and growing the domestic economy.
He argues the taxes will encourage US consumers to buy more American-made goods, boosting the country's economy and increasing the amount of tax raised.
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.
Trump wants to reduce the gap between the value of goods the US imports and those it exports to other 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.
For example, the US had a trade deficit of $213bn (£165bn) with the European Union (EU) in 2024, something Trump has called "an atrocity".
US Commerce Secretary Howard Lutnick later said the tariffs were "worth it" even if they did lead to an economic downturn.
The US president also said tariffs were intended to force China, Mexico and Canada - the countries first targeted - to do more to stop migrants and drugs reaching the US.
Trump's tariffs initially targeted goods from China, Mexico and Canada.
He has refused to rule out the possibility of a recession as a result of his trade policies. US Commerce Secretary Howard Lutnick said tariffs were "worth it" even if they led to an economic downturn.
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.
All three countries have rejected the accusations.
Trump's tariffs risk economic turbulence - and voter backlash
Trump'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?
Is the US really heading into a recession?
How do the steel and aluminum tariffs work?
Will prices go up for US consumers?
The 25% tariffs on all US imports of steel and aluminum began on 12 March.
Economists expect tariffs to increase prices for US consumers across many imported goods, as firms pass on some or all of their increased costs.
The US buys more steel than any other country - with Canada, Brazil and Mexico its top three suppliers.
The products affected could include everything from beer, whisky and tequila to maple syrup, fuel and avocados.
Canada is also the largest supplier of aluminum to the US, providing almost 60% of the amount imported.
Firms may also decide to import fewer foreign goods, which could in turn make those which are available more expensive.
When Trump first announced the tariff on steel and aluminium imports, he said there would be no exceptions.
Among Trump's targets are overseas car firms. The US imported about eight million cars last year - accounting for about $240bn (£186bn) in trade and roughly half of overall sales.
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 said there would be new import taxes of 25% on cars and car parts. He said these would come into effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts could start in May.
Trump scrapped this plan just hours before it was due to take effect, after Canada agreed to suspend the extra energy charges.
Car prices were already expected to rise as a result of tariffs on imports from Canada and Mexico.
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.
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 tariffs
How have other countries reacted to the steel tariffs?
In the hours after the levy took effect, Canada and the EU both announced retaliatory tariffs.
Canada introduced a 25% tariff on an additional C$29.8bn ($20bn; £16bn) worth of US goods from 13 March.
This includes steel products worth C$12.6bn, sports equipment, computers and cast iron items.
Incoming Canadian PM Carney ready to talk trade with Trump if 'there's respect for sovereignty'
The EU tariffs will target US goods worth €26bn (£22bn), and will start on 1 April and be fully in place on 13 April.
They will cover items ranging "from boats to bourbon to motorbikes", in addition to steel and aluminium goods such as pipes, window frames and tin foil.
European Commision President Ursula von der Leyen said she "deeply regrets this measure". Tariffs are "bad for business and worse for consumers", she added.
Writing on his social media site, Truth Social, Trump said that if the EU's 50% tax on US whiskey was not removed "immediately", the US would levy a 200% tariff on all wines, Champagnes and alcoholic products coming out of EU represented countries.
"This will be great for the Wine and Champagne businesses in the US," he added.
EU braces for higher prices as US trade war ramps up
The UK exports hundreds of millions of pounds worth of steel to the US every year.
Prime Minister Sir Keir Starmer told MPs that the UK will take "pragmatic approach" to the US tariffs, but confirmed it will "keep all options on the table".
How will the latest Trump tariffs affect the UK?
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.
What is happening with the other tariffs against Canada and Mexico?
Trump has already 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.
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.
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.
The cost of a car made using parts from Mexico and Canada alone could rise by $4,000-$10,000 depending on the vehicle, according to analysts at the Anderson Economic Group.
On 6 March Trump expanded the tariff exemption to include other goods shipped under the USMCA.
The tariffs Trump announced during his first term as president 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.
Items currently covered by the pact's rules include televisions, air conditioners, avocados and beef, according to analysis by the firm Trade Partnership Worldwide.
US tariffs on imported washing machines between 2018 and 2023 increased the price of laundry equipment by 34%, according to official statistics.
Trump also reduced tariffs on potash - a key ingredient for fertiliser used by US farmers - from 25% to 10%.
Prices fell once the tariffs expired.
How has Canada responded to the other US tariffs?
What tariffs has Trump announced?
Outgoing Prime Minister Justin Trudeau accused Trump of planning "a total collapse of the Canadian economy [to] make it easier to annex us".
4 February:
He said Canada would immediately target C$30bn ($21bn; £16bn) worth of US imports, and goods worth a further C$125bn in 21 days.
10% tariff on goods from China
After Trump excluded more Canadian goods from these tariffs, Canada said it would delay the planned second round of taxes.
7 February:
But it is not clear what will happen with these now given Canada's response to the US steel and aluminium tariffs.
Exemption for shipments from China worth less than $800
Trudeau's successor Mark Carney also strongly criticised Trump's "unjustified tariffs", and vowed that "in trade, as in hockey, Canada will win."
4 March:
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.
10% tariff on Chinese goods doubled to 20%
But these plans were suspended after Trump's threat to double the tariffs on Canadian steel and aluminium imports.
25% tariff against goods from Mexico and Canada, with a 10% tariff on Canadian energy imports
Canada hits US with retaliatory tariffs after warning of 'existential threat'
5 March:
Who is Doug Ford, the Canadian premier standing up to Trump?
A month-long tariff exemption announced for cars made in North America which comply with the continent's existing free trade agreement
How has Mexico responded to the other US tariffs?
6 March:
Mexico also delayed retaliatory tariffs on US goods during the initial month-long pause.
Tariff exemption expanded to include other goods shipped under North America's free-trade agreement, such as televisions, air conditioners, avocados and beef
President Claudia Sheinbaum urged Mexicans to "remain calm" over Trump, insisting that "cooler heads will prevail."
Tariffs on potash - used in fertiliser by US farmers - reduced from 25% to 10%
She also agreed to deploy 10,000 troops to the US-Mexico border to help tackle smuggling.
12 March:
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".
25% tariff on all steel and aluminum imports
However, before these were set out, Trump announced the concessions for carmakers and other goods, which she welcomed.
2 April:
While Trump has been very critical of his Canadian counterpart Trudeau, he has praised Sheinbaum, calling their relationship "very good".
25% tariff on cars coming into the US
As the US and Canada trade barbs, it's so far so good for Mexico's Sheinbaum
May or later:
What is happening with tariffs against China?
25% tariff on imported car parts
A 10% charge on all goods imported from China started on 4 February.
Trump has also said he will introduce further tariffs on goods from other countries on 2 April.
Trump later said shipments worth less than $800 would be exempt.
During his 26 February cabinet meeting, he said he would announce specific sanctions on EU goods "very soon". He threatened a 200% tariff on alcohol bought from the EU in response to its plans for a 50% tax on US whiskey.
On 10 February, China responded with its own tariffs, including a 10-15% tax on some US agricultural goods.
How have other countries responded to Trump's tariffs?
Beijing has also targeted various US aviation, defence and tech firms by adding them to an "unreliable entity list" and imposing export controls.
A number of countries have responded to US tariffs by introducing their own on US goods.
The 10% levy doubled to 20% on 4 March.
These have added to fears of an global trade war and problems for economies worldwide.
China urged the US to return to dialogue with Beijing as soon as possible.
Tariffs on imports from the US could also push up prices for consumers.
"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 has introduced a 10-15% tax on some US agricultural goods. It has also targeted US aviation, defence and tech firms.
China says it is ready for 'any type of war' with US
EU tariffs targeting US goods worth €26bn (£22bn) will start on 1 April and be fully in place on 13 April. They will cover items ranging "from boats to bourbon to motorbikes", as well as steel and aluminium products.
Can Trump's tariffs break China's grip on manufacturing?
Canada has imposed 25% tariffs on US steel, aluminium and a range of other goods. Further counter tariffs may be introduced on 2 April.
Which products will be affected and will prices increase?
Mexico has delayed introducing its own retaliatory tariffs while negotiations continue.
All steel and aluminium imports are being taxed at 25%.
The UK has not announced tariffs against American goods while it tries to agree a US-UK trade deal. Chancellor Rachel Reeves told the BBC there are "intense negotiations" under way as the UK tries to avoid a trade war.
Goods from China worth more than $800 are covered by the 20% tariff.
US tariffs could badly affect the UK economy and derail Reeves's plans, according to the Office for Budget Responsibility (OBR), which assesses the government's economic policies.
Non-exempt imports from Mexican and Canada are subject to a 25% levy.
How will the Trump tariffs affect the UK?
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.
Toymakers warn of price rises
Six things that could get more expensive for Americans under Trump tariffs
Will the UK and Europe have to pay other tariffs?
The US has not announced any targeted sanctions against the UK.
As well as steel, Britain exports pharmaceutical products, cars and scientific instruments to America.
The UK government says it is negotiating a broader economic agreement with the US to get rid of tariffs.
During his 26 February cabinet meeting, Trump said he would set out specific sanctions on EU goods "very soon", but these have not been announced.
The US had a trade deficit of $213bn with the EU in 2024 - something Trump has previously described as "an atrocity".
