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What are tariffs and why is Trump threatening to use them? What are tariffs, which countries is Trump targeting and will prices rise?
(7 days later)
Watch: What is a tariff? The BBC's Adam Fleming explainsWatch: What is a tariff? The BBC's Adam Fleming explains
President Trump has introduced tariffs on goods from China, which has hit back by announcing similar charges on some US products. US President Donald Trump says he will announce tariffs on all steel and aluminium imports to the US, as he reshapes America's trading relationship with the world.
Trump has also threatened to introduce tariffs - a tax on imports - on goods from Canada and Mexico, but paused these for 30 days after both countries agreed to boost border security. The move could have a particular impact on neighbouring Canada, which is the biggest supplier of aluminium to the US. Trump has also threatened to introduce tariffs at a later date on other products from Canada, as well as Mexico.
The US president has said tariffs are needed to help the American economy and to "protect" the country from the "major threat of illegal aliens and deadly drugs". He has already introduced a levy of 10% on all products entering from China - which has responded with its own measures.
Trump told the BBC tariffs on EU goods could happen "pretty soon" - but suggested a deal could be "worked out" with the UK. The US president says these import taxes are needed to help the US economy and to "protect" the country from illegal immigration and the flow of drugs. Economists say they could push up prices for Americans.
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.
Trump introduced a 10% tariff on all goods from China. So, a product worth $10 would have an additional $1 charge applied to it.
The president originally said he would impose a 25% tariff on goods from Canada and Mexico.
Charging a percentage of a product's value is the most common type of tariff. Another type imposes a fixed figure on imports, whatever their value.
Companies that import goods from abroad pay the tariffs to the US government.Companies that import goods from abroad pay the tariffs to the US government.
Trump has introduced a 10% tariff on all goods from China. So, a product worth $10 would have an additional $1 charge applied to it.
The president originally said he would impose a 25% tariff on goods from Canada and Mexico, but later agreed to pause these after both countries agreed to boost border security.
Charging a percentage of a product's value is the most common type of tariff. Another type imposes a fixed figure on imports, whatever their value.
Why is Trump using tariffs?Why is Trump using tariffs?
Trump is fulfilling a campaign promise of introducing import duties against some of America's closest trading partners.Trump is fulfilling a campaign promise of introducing import duties against some of America's closest trading partners.
The tariffs will boost US manufacturing, protect jobs, raise tax revenue and grow the economy, he argues. He argues that tariffs will boost US manufacturing and protect jobs - for example in the US steel industry - as well as raising tax revenue and growing the economy.
Trump says he is also using tariffs to "combat the scourge of fentanyl", a powerful drug that causes tens of thousands of overdose deaths in the US each year. He has also sought to justify tariffs on metals - which he also introduced during his first term - as a national security issue.
Trump also says he is using tariffs to "combat the scourge of fentanyl", a powerful drug that causes tens of thousands of overdose deaths in the US each year.
His administration says chemicals used to make the drug come from China, while Mexican gangs supply it illegally and have fentanyl labs in Canada.His administration says chemicals used to make the drug come from China, while Mexican gangs supply it illegally and have fentanyl labs in Canada.
Canadian Prime Minister Justin Trudeau has said less than 1% of fentanyl entering the US comes from his country.Canadian Prime Minister Justin Trudeau has said less than 1% of fentanyl entering the US comes from his country.
At the same time Trump is placing economic pressure on these trading partners, he has stated a desire for Canada to join America as the 51st state, an idea Trudeau has firmly rejected. Trump says tariffs coming on steel and aluminium
Together, China, Mexico and Canada accounted for more than 40% of imports into the US last year. China's tit-for-tat tariffs on US take effect
EU tariffs coming 'pretty soon', but UK can be worked out - Trump
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What is happening with China, Canada and Mexico?What is happening with China, Canada and Mexico?
Together, China, Mexico and Canada accounted for more than 40% of imports into the US last year, making them some of Trump's most valuable trade partners.
ChinaChina
A 10% charge on all goods imported from China to the US took effect on 4 February.A 10% charge on all goods imported from China to the US took effect on 4 February.
In response, China said it will implement a 15% tariff on US coal and liquefied natural gas products from 10 February. Crude oil, agricultural machinery and large engine cars will see a 10% tariff. Beijing retaliated with its own tariffs that took effect on 10 February. These include a 15% tariff on US coal and liquefied natural gas products, and a 10% tariff on crude oil, agricultural machinery and large engine cars.
"Trade and tariff wars have no winners," said a spokesperson at China's Washington embassy. China has repeatedly voiced its opposition to a new trade war of the kind that developed between the two countries during Trump's first presidency.
CanadaCanada
Canadian Prime Minister Justin Trudeau said Trump's proposed tariffs of 25% on Canadian goods - which were also set to begin on Tuesday - "will be paused for at least 30 days while we work together". Trump paused for 30 days a proposed tariff of 25% on all goods entering from Canada - which was also due to begin on 4 February.
Trudeau's retaliatory 25% tariffs on 155bn Canadian dollars' worth ($107bn; £86bn) of US imports were also halted. Canada also paused its own retaliatory tariff of 25% on 155bn Canadian dollars' worth ($107bn; £86bn) of US imports.
In exchange for the pause, Trudeau said Canada was implementing a "$1.3bn border plan" to add "new choppers, technology and personnel to border," as well as "increased resources to stop the flow of fentanyl". In exchange for Trump's pause, Canadian Prime Minister Justin Trudeau said Canada was implementing a "$1.3bn border plan" to add "new choppers, technology and personnel to border," as well as "increased resources to stop the flow of fentanyl".
Much of the border security plan had already been announced in December.Much of the border security plan had already been announced in December.
Trump said the delay would allow the US to see "whether or not a final economic deal with Canada" can be reached. Trump said the delay would allow the US to see "whether or not a final economic deal with Canada" could be reached.
MexicoMexico
The proposed 25% tariffs against Mexico have also been delayed a month, as have measures by Mexico against US goods.The proposed 25% tariffs against Mexico have also been delayed a month, as have measures by Mexico against US goods.
Mexico's President Claudia Sheinbaum agreed to send 10,000 members of the National Guard to the US-Mexican border to "prevent the trafficking of drugs, in particular fentanyl".Mexico's President Claudia Sheinbaum agreed to send 10,000 members of the National Guard to the US-Mexican border to "prevent the trafficking of drugs, in particular fentanyl".
President Sheinbaum said the US had in turn agreed to increase measures to prevent the trafficking of high-powered US weapons into Mexico.President Sheinbaum said the US had in turn agreed to increase measures to prevent the trafficking of high-powered US weapons into Mexico.
Which products will be affected?Which products will be affected?
During Trump's previous time in office, he applied less restrictive tariffs on China. This time around, the tariffs appear to apply to all goods from China.During Trump's previous time in office, he applied less restrictive tariffs on China. This time around, the tariffs appear to apply to all goods from China.
Should the measures against goods from Mexico and Canada ultimately go ahead, a range of items are expected to become more expensive If the measures against goods from Mexico and Canada ultimately go ahead, a range of items are expected to become more expensive.
Car manufacturing could bear the brunt of the effects of tariffs.Car manufacturing could bear the brunt of the effects of tariffs.
Vehicle parts cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.Vehicle parts cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.
The average US car price could increase by $3,000 because of the import taxes, financial analyst TD economics suggested.The average US car price could increase by $3,000 because of the import taxes, financial analyst TD economics suggested.
Other goods from Mexico which could be affected include fruit, vegetables, spirits and beer.Other goods from Mexico which could be affected include fruit, vegetables, spirits and beer.
Canadian goods such as steel, lumber, grains and potatoes would also be likely to get pricier. Canadian goods such as steel, lumber, grains and potatoes would also be likely to get pricier for US consumers.
Canadian energy would be tariffed at 10% instead of 25%.Canadian energy would be tariffed at 10% instead of 25%.
Will the UK and Europe have to pay tariffs?Will the UK and Europe have to pay tariffs?
On Sunday, Trump told the BBC the UK was acting "out of line", but suggested a solution for the UK could be "worked out". Trump previously told the BBC the UK was acting "out of line", without giving further detail, but suggested a solution could be "worked out".
But, he said tariffs could be imposed on the EU "pretty soon", saying "they take almost nothing [from the US] and we take everything from them".
The UK's business secretary, Jonathan Reynolds, said the UK should be excluded from tariffs because the US exports more products to the UK than it imports.The UK's business secretary, Jonathan Reynolds, said the UK should be excluded from tariffs because the US exports more products to the UK than it imports.
The UK exports pharmaceutical products, cars and scientific instruments to the US.The UK exports pharmaceutical products, cars and scientific instruments to the US.
Trump has also said he could impose tariffs on the EU "pretty soon", because "they take almost nothing [from the US] and we take everything from them".
Last year, the US had a trade deficit of $213bn with the EU - which Trump described as "an atrocity".Last year, the US had a trade deficit of $213bn with the EU - which Trump described as "an atrocity".
The EU has said it would "respond firmly" to any tariffs. The EU has said it would "respond firmly" to any tariffs. US companies Harley Davidson, which manufactures motorcycles, and whiskey distilleries such as Jack Daniel's have previously faced EU tariffs.
US companies Harley Davidson, which manufactures motorcycles, and whiskey distilleries such as Jack Daniel's have previously faced EU tariffs.
Do tariffs cause inflation?Do tariffs cause inflation?
Economists suggest that a portion of the cost of tariffs ends up being paid by consumers. Economists have warned that tariffs are likely to raise prices for US consumers.
Sellers may raise the price of goods they are importing. For example, sellers may raise the price of goods they are importing if they are forced to pay higher duties.
From 2018 to 2023, tariffs on imported washing machines saw the price of laundry equipment rise by 34%, according to official statistics, before falling once the tariffs expired.From 2018 to 2023, tariffs on imported washing machines saw the price of laundry equipment rise by 34%, according to official statistics, before falling once the tariffs expired.
Some experts suggest that these new tariffs could prompt a wider trade war and exacerbate inflation.Some experts suggest that these new tariffs could prompt a wider trade war and exacerbate inflation.
Capitol Economics said the annual rate of inflation could increase from 2.9% to as high as 4% because of the newly announced tariffs. Capitol Economics has said the annual rate of inflation could increase from 2.9% to as high as 4% because of the newly announced tariffs.
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