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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?
(6 days later)
Watch: What is a tariff? The BBC's Adam Fleming explainsWatch: What is a tariff? The BBC's Adam Fleming explains
US President Donald Trump has introduced a series of tariffs targeting goods from other countries. US President Donald Trump is set to announce further tariffs on 2 April, which he has suggested will hit all countries.
He argues the measures - which make imports more expensive - will help US manufacturers and protect jobs. However, prices could go up for consumers. He has already introduced a series of taxes covering steel, aluminium and car imports as well as all goods from China.
Several tariffs announced by Trump have been delayed, amended or scrapped. Trump argues the measures - which make foreign goods more expensive - will help US manufacturers and protect jobs. However, prices could go up for consumers.
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.
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. For example, a 25% tariff on a $10 (£7.76) product would mean an additional $2.50 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.
Companies that bring the foreign goods into the country have to pay the tax to the government.Companies that bring the foreign goods into the country have to pay the tax to the government.
Firms may choose to pass on some or all of the cost to customers. Firms can choose to pass on some or all of the cost to customers.
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Analysts have warned the new tariffs will significantly disrupt US car production and put up prices for consumers
Why is Trump using tariffs?Why is Trump using tariffs?
Tariffs are a central part of Trump's economic vision. He says "tariff" is his favourite word.Tariffs are a central part of Trump's economic vision. He says "tariff" is his favourite word.
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 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.
Trump wants to reduce the gap between the value of goods the US imports and those it exports to other countries.Trump wants to reduce the gap between the value of goods the US imports and those it exports to other countries.
For example, the US had a trade deficit of $213bn (£165bn) with the European Union (EU) in 2024, something Trump has called "an atrocity".For example, the US had a trade deficit of $213bn (£165bn) with the European Union (EU) in 2024, something Trump has called "an atrocity".
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.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.
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.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.
Several tariffs announced by Trump have subsequently been delayed, amended or scrapped.
Trump's tariffs risk economic turbulence - and voter backlashTrump's tariffs risk economic turbulence - and voter backlash
Is the US really heading into a recession?Is the US really heading into a recession?
The US firms backing Trump's fight over trade
Will prices go up for US consumers?Will prices go up for US consumers?
Economists expect tariffs to increase prices for US consumers across many imported goods, as firms pass on some or all of their increased costs.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 products affected could include everything from beer, whisky and tequila to maple syrup, fuel and avocados.The products affected could include everything from beer, whisky and tequila to maple syrup, fuel and avocados.
Firms may also decide to import fewer foreign goods, which could in turn make those which are available more expensive.Firms may also decide to import fewer foreign goods, which could in turn make those which are available more expensive.
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.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.
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. The new import taxes of 25% on cars and car parts will take effect on 2 April, with charges on businesses importing vehicles starting the next day. Taxes on parts are due to kick in later, possibly in May.
Car prices were already expected to rise as a result of tariffs on imports from Canada and Mexico.Car prices were already expected to rise as a result of tariffs on imports from Canada and Mexico.
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.
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.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.
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.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.
US tariffs on imported washing machines between 2018 and 2023 increased the price of laundry equipment by 34%, according to official statistics.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.Prices fell once the tariffs expired.
What tariffs has Trump announced?What tariffs has Trump announced?
4 February: 2 April:
10% tariff on goods from China 25% tariff on cars coming into the US - 25% tariff on imported car parts due in May or later
7 February: 12 March:
Exemption for shipments from China worth less than $800 25% tariff on all steel and aluminium imports
4 March:
10% tariff on Chinese goods doubled to 20%
25% tariff against goods from Mexico and Canada, with a 10% tariff on Canadian energy imports
5 March:
A month-long tariff exemption announced for cars made in North America which comply with the continent's existing free trade agreement
6 March:6 March:
Tariff exemption expanded to include other goods shipped under North America's free-trade agreement, such as televisions, air conditioners, avocados and beefTariff exemption expanded to include other goods shipped under North America's free-trade agreement, such as televisions, air conditioners, avocados and beef
Tariffs on potash - used in fertiliser by US farmers - reduced from 25% to 10%Tariffs on potash - used in fertiliser by US farmers - reduced from 25% to 10%
12 March: 5 March:
25% tariff on all steel and aluminum imports A month-long tariff exemption announced for cars made in North America which comply with the continent's existing free trade agreement
2 April: 4 March:
25% tariff on cars coming into the US 10% tariff on Chinese goods doubled to 20%
May or later: 25% tariff against goods from Mexico and Canada, with a 10% tariff on Canadian energy imports
25% tariff on imported car parts 7 February:
Trump has also said he will introduce further tariffs on goods from other countries on 2 April. Exemption for shipments from China worth less than $800
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. 4 February:
10% tariff on goods from China
How will Trump's tariffs affect the UK?
The UK is affected by the car and steel tariffs which have already been introduced - and is expected to be hit again by the 2 April announcements.
Foreign Secretary David Lammy said the UK must "prepare for the worst".
However, the government has not announced any taxes on US imports in response.
Trade Secretary Jonathan Reynolds insists ongoing trade talks with the Trump administration mean the UK is in the "best possible position of any country" to have tariffs weakened or reversed.
Economists have warned any major tariffs could knock the UK's economy off course and make it harder for the government to hit its self-imposed borrowing rules.
Chris Mason: Jitters, uncertainty and hope as UK awaits Trump tariff decision
How have other countries responded to Trump's tariffs?How have other countries responded to Trump's tariffs?
A number of countries have responded to US tariffs by introducing their own on US goods. A number of other countries have introduced their own tariffs on goods imported from the US.
These have added to fears of an global trade war and problems for economies worldwide. These will make US products more expensive, and are bolstering fears of a global trade war which could create problems for economies worldwide.
Tariffs on imports from the US could also push up prices for consumers.
China has introduced a 10-15% tax on some US agricultural goods. It has also targeted US aviation, defence and tech firms.China has introduced a 10-15% tax on some US agricultural goods. It has also targeted US aviation, defence and tech firms.
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.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.
Canada has imposed 25% tariffs on US steel, aluminium and a range of other goods. Further counter tariffs may be introduced on 2 April.Canada has imposed 25% tariffs on US steel, aluminium and a range of other goods. Further counter tariffs may be introduced on 2 April.
Mexico has delayed introducing its own retaliatory tariffs while negotiations continue.Mexico has delayed introducing its own retaliatory tariffs while negotiations continue.
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.
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.
How will the Trump tariffs affect the UK?