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What are tariffs, which countries is Trump targeting and will prices rise? What are tariffs, why is Trump using them, and will prices rise?
(about 3 hours later)
Watch: What is a tariff? The BBC's Adam Fleming explains US President Donald Trump has announced a 25% tariff on all steel and aluminium imports.
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. He has already introduced a 10% tax on all products from China - which has responded with its own measures - and has threatened to introduce tariffs on products from Canada and Mexico.
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. Trump says tariffs will boost the US economy and "protect" the country from illegal immigration and the flow of drugs.
He has already introduced a levy of 10% on all products entering from China - which has responded with its own measures.
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.
Companies that import goods from abroad pay the tariffs to the US government. The companies that bring the foreign goods into the country pay the tax to the 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. Typically, tariffs are a percentage of a product's value. The 10% tariff on Chinese goods means 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. Firms may choose to pass on some or all of the cost of tariffs to customers.
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. Tariffs are a central part of Trump's economic plans. He promised to introduce import duties against some of America's main trade partners during his election campaign.
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. He says tariffs will boost US manufacturing and protect jobs, as well as raising tax revenue and growing the economy.
He has also sought to justify tariffs on metals - which he also introduced during his first term - as a national security issue. The White House said said the president was also "taking bold action to hold Mexico, Canada, and China accountable to their promises of halting illegal immigration and stopping poisonous fentanyl and other drugs from flowing into our country."
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. Fentanyl is linked to 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. The Trump administration says the chemicals come from China, while Mexican gangs supply it illegally and run fentanyl labs in Canada. Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US.
Canadian Prime Minister Justin Trudeau has said less than 1% of fentanyl entering the US comes from his country.
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What is happening with China, Canada and Mexico? Watch: What is a tariff? The BBC's Adam Fleming explains
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. How will the steel and aluminum tariffs work?
Trump says the 25% tariff on both metals will come into effect on 12 March, with no exceptions.
The US is the world's largest importer of steel, with Canada, Brazil and Mexico its top three suppliers.
Canada also provided more than 50% of the aluminium imported into the US in 2024.
Shares of US steelmakers rose following the announcement. However, American companies which use steel and aluminium to make products have warned the tariffs could put their prices up.
The Canadian government said the tariffs were "totally unjustified" and vowed swift retaliation.
Trump previously announced tariffs of 25% on steel and 15% on aluminium in 2018, during his first term as president. However, he subsequently negotiated exceptions for many countries including Australia, Canada and Mexico.
Despite the 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.
What is happening with tariffs against China, Canada and Mexico?
Together, China, Mexico and Canada accounted for more than 40% of imports into the US in 2024.
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. Trump then said shipments worth less than $800 (£645) would be exempt.
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. Beijing retaliated with its own tariffs, which 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.
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. China has repeatedly voiced its opposition to a trade war with the US.
CanadaCanada
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. A proposed tariff of 25% on all goods entering from Canada was also due to begin on 4 February. However, this was delayed for 30 days.
Canada also paused its own retaliatory tariff of 25% on 155bn Canadian dollars' worth ($107bn; £86bn) of US imports.Canada also paused its own retaliatory tariff of 25% on 155bn Canadian dollars' worth ($107bn; £86bn) of US imports.
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". PM 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.
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" could be reached.Trump said the delay would allow the US to see "whether or not a final economic deal with Canada" could be reached.
Booze, oil and orange juice: How Canada could fight Trump tariffs
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 new 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". Mexican 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. 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? With Trump's tariffs looming - will countries scramble to cut deals?
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. In depth: The tariff wars have begun - buckle up
If the measures against goods from Mexico and Canada ultimately go ahead, a range of items are expected to become more expensive. Which products will be affected and will prices increase?
Car manufacturing could bear the brunt of the effects of tariffs. All goods from China worth more than $800 are covered by the 10% tariff.
Vehicle parts cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled. Economists warn that firms selling imported goods are likely to increase prices for US consumers, to cover the cost of the duty.
The average US car price could increase by $3,000 because of the import taxes, financial analyst TD economics suggested. If the measures against Mexican and Canadian imports go ahead, items they produce are also expected to become more expensive.
Car manufacturing could be hit extremely hard. 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.
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 for US consumers. Canadian goods such as steel, timber, grains and potatoes are also likely to get more expensive.
Canadian energy would be tariffed at 10% instead of 25%. Canadian energy would face a 10% tariff instead of 25%.
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.
Some experts suggest that Trump's new round of tariffs could prompt a wider trade war which could put prices up more generally.
Capitol Economics said the annual rate of US inflation could increase from 2.9% to as high as 4%.
Will Donald Trump's tariffs hurt US consumers?
Will the UK and Europe have to pay tariffs?Will the UK and Europe have to pay tariffs?
Trump previously told the BBC the UK was acting "out of line", without giving further detail, but suggested a solution could be "worked out". Trump previously told the BBC the UK was "out of line", but suggested a solution could be "worked out".
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". Business secretary Jonathan Reynolds said the UK should be excluded from tariffs because it buys more from the US than it sells to there.
Last year, the US had a trade deficit of $213bn with the EU - which Trump described as "an atrocity". BBC economics editor Faisal Islam said he understands the UK will not immediately retaliate to the renewal of steel and aluminium 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. Trump also said he was considering imposing tariffs on the EU because "they take almost nothing [from the US] and we take everything from them".
Do tariffs cause inflation? In 2024, the US had a trade deficit of $213bn with the EU - which Trump described as "an atrocity".
Economists have warned that tariffs are likely to raise prices for US consumers. European Commission President Ursula von der Leyen strongly criticised the new steel and aluminium levies.
For example, sellers may raise the price of goods they are importing if they are forced to pay higher duties. "Unjustified tariffs on the EU will not go unanswered," she said.
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. US companies Harley Davidson, which manufactures motorcycles, and whiskey distilleries such as Jack Daniel's have previously faced EU tariffs.
Some experts suggest that these new tariffs could prompt a wider trade war and exacerbate inflation.
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.
Trump's trade war with neighbours is delayed - what did they all get out of it?
Trump's tariffs hit China hard before - this time, it's ready
Booze, oil and orange juice: How Canada could fight Trump tariffs
Will Donald Trump's tariffs hurt US consumers?