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What Trump has announced on tariffs and why it matters What Trump has announced on tariffs and why it matters
(31 minutes later)
Watch: Three things to know about Trump's tariffs announcementWatch: Three things to know about Trump's tariffs announcement
US President Donald Trump announced sweeping tariffs on goods from countries across the world, on what he called "Liberation Day".US President Donald Trump announced sweeping tariffs on goods from countries across the world, on what he called "Liberation Day".
He says the move will make America wealthy again, but economists warn that prices could rise for Americans and fears of a global trade war have grown.He says the move will make America wealthy again, but economists warn that prices could rise for Americans and fears of a global trade war have grown.
What are tariffs and which countries is Trump targeting?What are tariffs and which countries is Trump targeting?
Tariffs are taxes charged on goods imported from other countries. Companies bringing the goods into the country pay the amount, typically a percentage of the goods' value, to the government. Tariffs are taxes on goods from other countries. Companies bringing the goods into the country pay the amount, typically a percentage of the goods' value, to the government.
Trump has announced a 10% "baseline" tariff on all imports to the US – this is what the UK will face. Trump announced a 10% "baseline" tariff on all imports to the US. This is what the UK will face.
But 60 countries will be hit with higher rates of up to 50%, including Cambodia, Vietnam, Malaysia and Bangladesh. Countries in the European Union are facing a 20% tariff. The tariffs are set to take effect in days. But 60 countries will be hit with higher rates of up to 50%, including Cambodia, Vietnam, Malaysia and Bangladesh. Countries in the European Union face a 20% tariff. The tariffs are set to take effect in days.
Trump also confirmed previously announced tariffs on specific goods, including 25% on steel, aluminium and foreign-made cars.Trump also confirmed previously announced tariffs on specific goods, including 25% on steel, aluminium and foreign-made cars.
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Explainer: What are tariffs and why is Trump using them?Explainer: What are tariffs and why is Trump using them?
At a glance: Trump's tariffs on China, the EU and others At a glance: The "worst offenders" hit hardest by Trump's import taxes
BBC Verify on how Donald Trump's tariffs were calculated BBC Verify on the calculations used for Trump's giant cardboard chart
Why is Trump so keen to use tariffs?Why is Trump so keen to use tariffs?
Trump says "tariff" is his favourite word, and since the 1980s he has held a strong belief that the taxes can boost the US economy. Since the 1980s, Trump has strongly argued that the taxes can boost the US economy.
He believes they will encourage US consumers to buy more American-made goods, and increase the amount of tax raised. Trump also wants to reduce the gap between the value of US goods imported and exported. He believes they will encourage US consumers to buy more American goods, and increase the amount of tax raised. Trump also wants to reduce the gap between the value of US goods imported and exported.
The White House said the measures were necessary because countries were taking advantage of the US by imposing their own high tariffs and other trade barriers. The White House said other countries were taking advantage of the US by imposing their own high tariffs and other trade barriers. "For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," the US president said.
"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said as he announced the tariffs.
However, Trump is taking an enormous risk upon which he is staking his presidency, our North America correspondent Anthony Zurcher writes.However, Trump is taking an enormous risk upon which he is staking his presidency, our North America correspondent Anthony Zurcher writes.
If successful, the move could fundamentally reshape the global economic order. Trump promises that it will rebuild American manufacturing and make the country more self-reliant. If successful, the move could reshape the global economic order. Trump promises that it will rebuild American manufacturing and make the country more self-reliant.
But it risks alienating allies, while economists warn it could raise prices and threaten a global recession. But it risks alienating allies and economists warn it could raise prices and threaten a global recession.
A messy global trade war looks inevitable, suggests the BBC's economics editor Faisal Islam.A messy global trade war looks inevitable, suggests the BBC's economics editor Faisal Islam.
Trump's decision to take tariff revenues to a level beyond those seen during the 1930s will mean huge changes to world trade patterns, he says.Trump's decision to take tariff revenues to a level beyond those seen during the 1930s will mean huge changes to world trade patterns, he says.
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North America correspondent Anthony Zurcher on why introducing tariffs was a longtime goal for Trump - and his biggest gamble yetNorth America correspondent Anthony Zurcher on why introducing tariffs was a longtime goal for Trump - and his biggest gamble yet
Economics editor Faisal Islam on the biggest change to global trade in 100 yearsEconomics editor Faisal Islam on the biggest change to global trade in 100 years
Will prices go up for US consumers?Will prices go up for US consumers?
Economists warn this is likely because companies are likely to pass the increased cost of imported goods onto their customers. They could also reduce imports, meaning fewer products are available - putting further pressure on prices. Economists say many companies are likely to pass the increased cost of imported goods onto their customers. They could also reduce imports, meaning fewer products are available - putting further pressure on prices.
To raise the revenue Trump is hoping for, US consumers are going to have to swallow rises and keep on buying items made in other countries in similar quantities as now, says the BBC's deputy economics editor Dharshini David. To raise the revenue Trump is hoping for, US consumers are going to have to swallow rises and keep on buying items made in other countries in similar quantities, says the BBC's deputy economics editor Dharshini David.
And as she points out, history shows the frontline casualties tend to be consumers, due to reduced choice and higher prices, and exporters. And as she points out, history shows the frontline casualties tend to be consumers, due to reduced choice and higher prices.
"Growth, jobs and price stability are in the firing line," she writes.
Cars, lumber used to build houses, beer, whisky and tequila, and avocados are among the goods that could become more expensive.Cars, lumber used to build houses, beer, whisky and tequila, and avocados are among the goods that could become more expensive.
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History shows these wars rarely end well, writes deputy economics editor Dharshini DavidHistory shows these wars rarely end well, writes deputy economics editor Dharshini David
Cars, beer and fuel - the six things that could become more expensive for American consumers Cars, beer and fuel - six of the things that could become more expensive for American consumers
How is the world reacting to Trump's tariffs?How is the world reacting to Trump's tariffs?
Global stockmarkets fell after tariffs were announced and a series of world leaders condemned the measures. Global stockmarkets fell and a series of world leaders condemned the measures.
European Commission chief Ursula von der Leyen said "the global economy will massively suffer" and that "the consequences will be dire for millions of people around the globe". European Commission chief Ursula von der Leyen said "the consequences will be dire for millions of people around the globe".
EU countries are finalising a response to 25% steel and aluminium tariffs, which have already been introduced, and could announce further measures. EU countries are finalising a response to the 25% steel and aluminium tariffs and could announce further measures.
The commission has promised to protect European businesses, including Germany's car industry, Italy's luxury goods and France's wine and champagne producers. The commission has promised to protect European businesses, including Germany's car industry, Italy's luxury goods and France's wine producers.
China has promised "resolute countermeasures", which are likely to hurt US companies trying to sell into the huge Chinese market.China has promised "resolute countermeasures", which are likely to hurt US companies trying to sell into the huge Chinese market.
However, Trump's tariffs may also benefit China by allowing President Xi Jinping to portray his country as a champion of free trade, the BBC's China correspondent Stephen McDonell says. Countries could be encouraged to build or strengthen their trade relationships with China. However, Trump's tariffs may also benefit China by allowing President Xi Jinping to portray his country as a champion of free trade, the BBC's China correspondent Stephen McDonell says.
UK Prime Minister Sir Keir Starmer acknowledged the economy will be hurt by the latest tariffs but promised to react with "cool and calm heads".UK Prime Minister Sir Keir Starmer acknowledged the economy will be hurt by the latest tariffs but promised to react with "cool and calm heads".
Business Secretary Jonathan Reynolds told MPs the government would launch a consultation to explore how retaliatory tariff measures against US products could affect British firms. Business Secretary Jonathan Reynolds told MPs the government would look at how retaliatory tariff measures against US products could affect British firms.
Canada's Prime Minister Mark Carney said the tariffs will "fundamentally change the international trading system". Canada's Prime Minister Mark Carney said the country would retaliate against US tariffs soon, "with purpose and with force", to protect workers and strength the economy.
He said Canada would retaliate against US tariffs soon, "with purpose and with force", to protect workers and strength the economy.
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UK firms call the tariffs a "huge blow to Scottish whisky"UK firms call the tariffs a "huge blow to Scottish whisky"
BBC correspondents around the globe on the risks and opportunities the tariffs will create for Europe, China, India and South AfricaBBC correspondents around the globe on the risks and opportunities the tariffs will create for Europe, China, India and South Africa
How do global leaders plan to respond?How do global leaders plan to respond?
How tariffs could affect UK households - and their moneyHow tariffs could affect UK households - and their money
The UK is now facing a 10% tariff on all goods heading to the US but there's a lot of uncertainty about what it could mean for the UK itself: The UK faces a 10% tariff on goods heading to the US but there's lots of uncertainty about what it could mean for the UK itself:
Prices could rise – or fallPrices could rise – or fall
Once tariffs are in place, the value of the dollar could strengthen. That might push up import costs for UK firms buying goods, which could then be passed on to consumers through higher prices. Once tariffs are in place, the value of the dollar could strengthen. That might push up import costs for UK firms, which could mean higher prices for consumers.
But some economists say prices might actually drop at first. That's because firms that usually sell to the US might start sending their goods to countries like the UK instead – possibly leading to a surge of cheaper goods here.But some economists say prices might actually drop at first. That's because firms that usually sell to the US might start sending their goods to countries like the UK instead – possibly leading to a surge of cheaper goods here.
Your job could be affectedYour job could be affected
Higher prices might lead workers to ask for bigger pay rises. If UK companies see their profits squeezed, job cuts could follow. More than 25,000 jobs in the car manufacturing sector could be at risk. Higher prices might lead workers to ask for bigger pay rises. If UK companies see their profits squeezed, job cuts could follow.
Interest rates could stay highInterest rates could stay high
Rates are currently at 4.5%, and economists had expected two cuts this year. But if inflation rises because of higher prices, rates might stay higher for longer.Rates are currently at 4.5%, and economists had expected two cuts this year. But if inflation rises because of higher prices, rates might stay higher for longer.
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Find out what the US tariffs could mean for UK prices, jobs and interest ratesFind out what the US tariffs could mean for UK prices, jobs and interest rates
What about the impact on the US economy and world trade?What about the impact on the US economy and world trade?
The chance of the US economy heading into a recession rose to 50% after Trump's announcement, according to former International Monetary Fund chief economist Ken Rogoff.The chance of the US economy heading into a recession rose to 50% after Trump's announcement, according to former International Monetary Fund chief economist Ken Rogoff.
Trump has previously refused to rule out the possibility of a recession. US Commerce Secretary Howard Lutnick said tariffs were "worth it" even if they led to a downturn. Trump has previously refused to rule out the possibility of a recession.
There are worries that the tariffs could affect US consumer spending, which is a massive part of the global economy. There are worries that tariffs could affect US consumer spending - a massive part of the global economy.
In Asia, he says it will "break the business models of thousands of companies, factories, and possibly entire nations", says our economics editor Faisal Islam. In Asia, tariffs will "break the business models of thousands of companies, factories, and possibly entire nations", says our economics editor Faisal Islam.
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How stocks have fallen but the price of gold, seen as a safer asset in times of turbulence, touched a record highHow stocks have fallen but the price of gold, seen as a safer asset in times of turbulence, touched a record high