US President Donald Trump has imposed heavy tariffs in a speech at the White House, unveiling a 10% tariff on UK goods.
Trump also confirmed that from midnight in Washington, 5am Thursday in the UK, a 25% tariff would be imposed on all foreign cars imported to the US – a move which experts fear could cost 25,000 jobs in the British car industry.
The US president said his “liberation day” announcement was a “declaration of economic independence”.
Speaking from the Rose Garden, he help up a large chart showing a table titled "Reciprocal Tariffs", which compares tariffs imposed by other countries on the US versus Washington.
"They charge us, we charge them. How can anybody be upset?" he said.
Trump said tariffs of 10% would apply to other products from the UK – the same level as the global “baseline” he was setting for countries around the world as part of his “reciprocal” measures.
Amid fear of what the tariffs could mean for Scotland's whisky industry, a spokesperson for the Scotch Whisky Association said: "The industry is disappointed that Scotch Whisky could be impacted by these tariffs.
"We welcome the intensive efforts by the UK government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”
Talking about the tariffs he is about to put on other nations, Trump had told the White House press conference: “We will charge them approximately half of what they are and have been charging us. So the tariffs will be not a full reciprocal.
“I could have done that, yes. But it would have been tough for a lot of countries.”
Trump went on to single out the European Union, who he has imposed 20% tariffs on, adding: "They rip us off. It's so sad to see. It's so pathetic."
The Confederation of British Industry (CBI) said that UK businesses need a “measured and proportionate approach” to Donald Trump’s announcement of tariffs.
Rain Newton-Smith, chief executive of the CBI said in a statement: “Business has been clear: there are no winners in a trade war. Today’s announcements are deeply troubling for businesses and will have significant ramifications around the world.
“A cool and calm reaction from the UK Government is the right response: UK firms need a measured and proportionate approach which avoids further escalation. Retaliation will only add to supply chain disruption, slow down investment, and stoke volatility in prices.
“The UK Government has rightfully tried to negotiate a carveout to any incoming tariffs through a bilateral economic deal. As they seek to grow the economy, negotiating stronger trading relationships with all like-minded partners will be foundational to any success.
“The UK must use this unpredictable period to double down on its commitment to free, fair and open trade. Doing so will provide businesses with the confidence needed to kickstart growth, foster innovation, and boost productivity.”
Shevaun Haviland, director general of the British Chambers of Commerce, said Trump’s imposition of tariffs is a “lose-lose situation for everyone”.
She said: “The Government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.
“But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on businesses communities across the world. Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.
“So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.
When talking about the US tariffs of 25% on all foreign-made automobiles from midnight, he said: “I don’t blame these other countries at all. I blame former presidents and past leaders.
“They let it happen to an extent that nobody can even believe."
The president also hit out at “exorbitant” 20% VAT rates, which he views as a barrier to US firms seeking to sell into the UK market as he promised reciprocal tariffs.
Trump said: “April 2, 2025 will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to make America wealthy again.”
