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Donald Trump's sweeping tariffs have rocked the global economy, sending stock markets tumbling and countries trying to work out how they should respond. We explain what the tariffs are, what the impact could be on British businesses and consumers and what they mean for you. What is a tariff? A tariff is effectively a tax on goods coming into a country from abroad.
They are paid by the company importing the items. This normally has the effect of making the goods more expensive for consumers as companies pass on the cost of the tariff. Because they push up the cost of imports, tariffs are used to give home-grown industries an advantage over foreign competitors.
Pictured: A breakdown of Britain's business links with America by region. Medicinal and pharma and road vehicles formed some of the top UK exports to the US in 2023 What has Trump done with tariffs? The US President announced that all imports into the US will be subject to a minimum tariff of 10 per cent from tomorrow. But some countries that export lots of goods to the US, such as China, are set to be hit with higher levies from April 9.
Chinese exports were slapped with a 34 per cent 'reciprocal' tariff while the EU faced a levy of 20 per cent on its exports to the US. The levies mean the effective tariff rate for all US imports has surged to 22 per cent from just 2.5 per cent last year, levels not seen since 1910.
Donald Trump announced that all US imports will be subject to a minimum tariff of 10% What is Trump's plan? Mr Trump has said other nations have 'ripped off' the country for decades and that his tariffs are designed to 'make America wealthy again'. He has claimed that making it more expensive to import goods into America will mean more products will be made inside the country. Additionally, it is hoped the measures will raise trillions of dollars that can help pay for deep tax cuts.
Trump aide Peter Navarro said the tariffs...
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