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The Independent UK
The Independent UK
National
Athena Stavrou and Angus Thompson

Trump announces new car tariffs in big blow to UK

United Kingdom Donald Trump Rachel Reeves
  • US President Donald Trump has announced a 25 per cent tariff on all motor vehicle imports not made in the United States.
  • This escalates the ongoing trade war and poses a significant threat to the UK economy, as the US is the UK's largest vehicle export market.
  • The announcement follows the OBR halving the UK's economic growth forecast and Chancellor Rachel Reeves announcing spending cuts to plug a huge budget hole.
  • The UK government is in ongoing talks with the US to avoid tariffs, but no agreement has been reached yet.
  • The tariffs could potentially eliminate the Chancellor's budget headroom and necessitating further cuts or tax rises.
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