The top official of the European Union has threatened to respond to Donald Trump’s “pathetic rip off” jibe as the UK weighs up its response to crippling tariffs.
European Commission President Ursula von der Leyen hit out at Mr Trump’s move to impose massive 20 per cent tariffs on the trading bloc that could sent the continent into an economic downturn. Mr Trump said on Wednesday import taxes would be levied on goods entering the US to address what he viewed as substantial trade global trade imbalances. Describing April 2 as “Liberation Day,” Mr Trump argued the taxes would “make America wealthy again.” But Ms von der Leyen said it would be a major blow and that the consequences would “be dire for millions of people.”
EU leaders – and those across the world – are now scrambling to come up with a speedy response to the unpredictable President’s move. The 78-year-old has claimed the new charges on imports will restore US jobs after decades of manufacturing moving overseas – but economists have warned they are likely to kick-start a trade war and potentially trigger a new global recession, while forcing up prices at home and abroad. Despite Prime Minister Keir Starmer’s charm offensive in Washington DC, the UK did not escape being slapped with tariffs with steel imports facing 25 per cent import taxes. This is in addition to a wider 10 per cent tariff on all UK goods coming into the US.
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Sir Keir Starmer has said it would not be “wise” to tell the EU how to respond to Donald Trump’s tariffs.
He was asked if he would urge the EU to take a less “combative approach” to avoid a trade war.
Sir Keir said: “Well, in my experience, it’s not wise to go around telling other countries what they should or shouldn’t do.
“Everybody needs to act in their own best interest. And no doubt they will do so.
“My job is to lead the United Kingdom through this focused on our best interest.”
Donald Trump has lost the support of more than half of US voters following his world tariff war, according to a bombshell new poll.
Nate Silver has revealed that for the first time in Trump’s presidency, 50.1 per cent of Americans disapprove of the job he is doing. The polling analyst, who accurately predicted the outcome from the Wisconsin Supreme Court election, said Trump’s disapproval rating is now 50.1 per cent, with just 47 per cent approving of his job, according to averaged data from over 170 polls since he took office in January.
Read more: Donald Trump loses support of more than HALF of American voters in shock new poll result
Business Secretary Jonathan Reynolds told MPs: “At a time of volatility, businesses and workers alike are looking to the Government to keep our heads, to act in our national interest and to navigate Britain through this period.
“Whilst some urge escalation, I simply will not play politics with people’s jobs. This Government will strive for a deal that supports our industries and the well-paid jobs that come with them while preparing our trade defences and keeping all options on the table.”
Shadow business secretary Andrew Griffith said: “I’m glad the Government has recommitted to reaching a deal with our closest ally and largest single country trading partner.
“This is also a moment for honesty and telling the truth. The Government sadly got no special favours from the White House last night. The Secretary of State refers to vindication, this is no vindication at all, we’re in precisely the same band as the Congo, Costa Rica, Kosovo and the Christmas Islands.
“In fact, I count over 125 countries and territories that have the same tariff levels as the US as we now do, so not that special.”
There is a need for “maturity” in negotiations between the EU and the US, Irish deputy premier Simon Harris has said.
Mr Harris said: “If I look for any grain of hope in what was a very grim assessment and understanding of the global trading environment last night from the President of the United States, if you take any glimmer or positivity, it is the willingness that he outlined to talk to other countries.
“What we now need to do is call him out on that. We now need the President of the United States to mandate his team to engage with the EU.”
He added: “It’s absolutely clear President Trump wanted this big moment last night. He got it: Big charts and all – that happened in the Rose Garden, that bit is done.
“What we now need is the maturity of actually sitting down in a room and finding a way forward that’s good for the US economy, good for the EU economy, and that then ultimately is good for Ireland.”
Asked if Ireland would be willing to seek to negotiate with the US on an individual basis, Mr Harris said: “No – our strength here is being members of the European Union.”
White House deputy press secrtary Kush Desai revealed how tariffs were calculated.
In a response post shared to X/Twitter, he said: “No, we literally calculated tariff and non tariff barriers.”
No we literally calculated tariff and non tariff barriers.https://t.co/GiWRU6gJDv https://t.co/TmzN1wcC2b pic.twitter.com/sjV9apMJ4F
The following countries have the highest tairff rates under Mr Trump’s “reciprocal” import tax plan:
The Irish Government will “engage intensively” with Northern Ireland following the announcement of US tariffs on the EU and the UK, Simon Harris has said.
The Irish deputy premier said he had a “very useful video conference” with Northern Ireland First Minister Michelle O’Neill, deputy First Minister Emma Little-Pengelly and Economy Minister Caoimhe Archibald on Wednesday.
Speaking to reporters on Thursday, Mr Harris added: “We’ve agreed to keep in very close contact. I’d expect to speak to them again in the coming days, probably before I go to Luxembourg on Monday, or certainly on Monday, because I think we need to keep a very close eye on this.
“Northern Ireland is obviously in a distinct and unique position – we all know why – and it’s important we work our way through those scenarios.
“But we’ve also got to be honest, the European Union if it finds itself in the situation where the United States won’t negotiate in a meaningful way, of course, we’ll have to respond.
“But the efforts from the EU, the efforts from Ireland as part of the EU, will be to try to get to a negotiated way forward – and obviously that must have benefits from Northern Ireland too.
“It’s very much a dynamic, fluid situation, and we’re going to engage intensively with the North.”
More than £24billion was wiped off the value of Britain’s biggest firms in the first few hours’ of trading in the wake of Donald Trump’s tariff bombshell.
The FTSE 100 tumbled nearly 100 points in early trading as investors digested the fall-out of the US President’s escalating trade war. The smaller FTSE 250 – which is more focused on domestic companies – also fell despite Prime Minister Keir Starmer insisting the UK was “prepared”.
It followed big falls on markets in Asia and Europe, which has seen shares take a more than £100billion hit. The signs are that stock markets in the US will open down, compounding losses in recent weeks. Around £3.8trillion has already been wiped off America’s main index.
Read more: Donald Trump tariffs trigger stock market meltdown as more than £24billion wiped off FTSE 100
US President Donald Trump’s tariffs announcement is “deeply regrettable”, Northern Ireland’s Economy Minister Caoimhe Archibald has said.
Ms Archibald said she had already engaged with representatives of the UK and Irish governments on the issue. She said she had “five key asks” of the two governments.
She said: “First, to keep the north’s unique circumstances in mind in trade negotiations and in terms of any counter-measures. Second, to act in concert, and to minimise divergence between Britain and the EU.
“Third, to provide a properly resourced advice service for businesses so that they can understand how tariffs affect them. Fourth, to improve existing trading initiatives such as HMRC’s duty reimbursement and waiver schemes.
“Finally, to bring forward an economic package that protects our international competitiveness.” Ms Archibald added: “My department will closely monitor the impact of US tariffs and any counter-measures.
“On Monday morning I will meet with businesses and trade unions to assess the unfolding situation, and the next steps. Our task is to maintain the positive economic momentum that has built up over the last few years.”
Senior Conservative MP Chris Philp has warned that jobs will be lost due to Donald Trump’s tariffs and said the UK has not had any “special treatment”.
He was asked if the UK had “got off quite lightly” with 10 per cent tariffs slapped on imports to the US – half that imposed on the EU.
“No, I wouldn’t say that. Dozens and dozens of countries have the same 10 per cent tariffs on all goods and 25% on cars, just the same as us – from Costa Rica to Colombia, from Peru to Paraguay,” the shadow home secretary told LBC.
“So we’re not getting any special deal or special treatment.
“These tariffs are based on essentially reciprocation of what America thinks they’re being charged by other countries.
“This is really bad for our economy. It’s going to put jobs and growth at risk.”
He said the automotive sector is “hugely at risk” with the 25% tariffs on imports to the US of foreign cars and said the industry was already “reeling” from Labour’s policy on electric cars as well as being hit by “Ed Miliband’s crazy energy policy”.
Donald Trump’s trade war on the world means the UK-US relationship can “only be salvaged” if its terms are “rethought”, an expert has claimed.
The US president announced new tariffs on nearly all of their trading partners including a whopping 34 per cent tax on imports from China and 20 per cent on the European Union. The UK was slapped with a 10 per cent tariff which was labelled a “disappointment” by business secretary Jonathan Reynolds.
Meanwhile, Keir Starmer told business leaders gathered at Downing Street that “clearly there will be an economic impact”, but called for “cool and calm heads” following Trump’s announcement of a 10 per cent tariff on imports from the UK.
Read more: Donald Trump declares trade war as expert reveals ‘only’ way UK-US relationship can be saved
The introduction of a 10 per cent tariff on US imports of UK goods is “a very big moment”, Business Secretary Jonathan Reynolds has said.
US President Donald Trump confirmed sweeping import levies on countries across the world, hailing America’s “declaration of economic independence”.
Mr Reynolds told Nick Ferrari on LBC: “This is a very big moment. My concern, obviously, was about what does it mean for British workers, British industry.
“[It is] a very significant trading partner for us, and so whilst the UK has been put in a more favourable position than others, I am disappointed.”
Mr Reynolds said he did not believe there was a need for the tariffs as UK and US already had a “strong and fair and balanced” trading relationship.
London’s FTSE 100 Index dropped sharply on opening, falling 122.4 points or 1.4 per cent to 8486.09 in the first few minutes of trading after US President Donald Trump unveiled sweeping new tariffs on US imports.
The top boss of the European Union (EU) has hit out at Donald Trump’s “pathetic” jibe after he issued sweeping tariffs on the trading bloc.
European Commission President Ursula von der Leyen lashed out at Mr Trump’s 20 per cent tariffs on goods from the bloc and said member states were “prepared to respond.” Mr Trump said on Wednesday that import taxes would be levied on goods entering the US to address what he claimed were trade imbalances and bring back manufacturing jobs to the country.
The Republican’s tariffs represent the biggest pivot back toward protectionist economics in the US since the end of the Great Depression. Economic analysts have been stunned by the move and have predicted economic downturns across the globe with prices expected to soar should the tariffs remain in place.
Ms Von der Leyen said the tariffs would have a huge impact on European consumers and damage the world’s largest single market. She added moves would need to be taken to defend the bloc against major disruptions in global trade.
Read more: EU responds to Trump tariffs as boss hits back at US President’s furious ‘PATHETIC’ blast
Those who are framing the lower tariffs the US has placed on the UK compared to the EU as a vindication of Brexit have “missed the point”, the Business Secretary has said.
“I think anyone trying to use this to fight the kind of perennial historical political debates in the UK has missed the point,” Jonathan Reynolds told Times Radio. This is … a really significant change to how the global trading system operates and the US’s role within it.
“Of course, I’m happy that we in the UK can set our own specific trade policy in our own interests, that’s important to me, and an important way of how we are handling these issues. But, look, this is much bigger than the UK’s relationship to the European Union and we’ve got to recognise that.”
US tariffs on the UK are a “disappointment” and “a challenge”, the Business Secretary has said.
Jonathan Reynolds told Times Radio: “Any barrier to trade, particularly between the UK and our major trading partner, which the US is, is a disappointment to me. It’s a challenge.
“So, I recognise that the UK is in a better position than a lot of other countries from what was announced last night, but I was still disappointed.”
He said the UK has “modelled every scenario” for the impact of tariffs but it is “not just about the relationship between the UK and the US, but what is going on in the rest of the world”.
A timeline for the UK to seal an economic deal to mitigate tariffs is “largely in the gift of the US”, he said.
Mr Reynolds said: “We have every scenario you could imagine planned for but we also have a plan in place to stay calm, to talk to the US, to continue our work, to make sure that we are getting the best for the UK and working with all friends and allies as a way through this, rather than let the rhetoric overcome us, let the siren calls to make this even worse be listened to.”
Donald Trump has sent shockwaves around the world with the announcement of his “Liberation Day” trade tariffs.
The early signs are that the UK has got off lightly – with levies of 10% on goods we sell to the States – compared with as high as 50 per cent for some countries. But is it that straightforward, and what are the implications for the global economy, the UK and your finances?
Read more: President Donald Trump’s tariffs: What his bombshell move means for the UK and your money
Donald Trump’s sweeping tariffs are set to hit “the most vulnerable people” the most, a European Union official has warned.
EU Commission President Ursula von der Leyen said the new import taxes of 20 per cent levied against the EU were a “major blow to the world economy.”
“The consequences will be dire for millions of people around the globe,” von der Leyen said. Groceries, transport and medicines are set to cost more, she said. “And this is hurting, in particular, the most vulnerable citizens.” She did acknowledge the world trading system had “serious deficiencies” and added the EU was prepared to negotiate with the US.
Read more here.
Donald Trump’s so-called reciprocal tariffs, which are paid by US-based companies importing products into the United States, vary by country, ranging from a minimum of 10% to more than 40%. To determine the amounts of those reciprocal tariffs, the US Trade Representative’s Office used a formula to calculate the tariff rate necessary to balance trade deficits between the United States and its trading partners, according to a statement posted on the trade representative’s website.
The formula took into account a variety of factors that can put US products at a disadvantage, like regulatory requirements, environmental reviews, differences in consumption tax rates and currency manipulation, the statement said.
Mike Pence is not a fan of Trump’s new tariffs.
The former vice president posted on the social platform X: “The Trump Tariff Tax is the largest peacetime tax hike in U.S. history.”
“These Tariffs are nearly 10x the size of those imposed during the Trump-Pence Administration and will cost American families over $3,500 per year,” Pence wrote.
Pence was once among Trump’s fiercest loyalists. The pair have feuded since Pence refused to heed Trump’s calls to ignore the Constitution and attempt to help overturn Joe Biden’s 2020 election victory.
The Senate passed a resolution Wednesday night that would thwart President Donald Trump’s ability to impose tariffs on Canada – delivering a rare rebuke to the president just hours after he unveiled sweeping plans to clamp down on international trade.
The Senate resolution, passed by a 51-48 vote tally with four Republicans and all Democrats in support, would end Trump’s emergency declaration on fentanyl trafficking that underpins tariffs on Canada. Trump earlier Wednesday announced orders — his so-called “Liberation Day” — to impose import taxes on a slew of international trading partners, though Canadian imports for now were spared from new taxes.
The Senate’s legislation has practically no chance of passing the Republican-controlled House and being signed by Trump, but it showed the limits of Republican support for Trump’s vision of remaking the US economy by restricting free trade. Many economists are warning that the plan could cause an economic contraction, and GOP senators are already watching with unease as Trump upends the United States’ relationship with the rest of the world.
Donald Trump tonight delivered on his threat to slap eye-watering import taxes – tariffs – on every country in the world.
And he battered countries he considers the worst trading partners, who “looted, pillaged, raped and plundered” the United States – with even higher tariff rates.
Trump insists the shakeup, resetting America’s trading relationship with every country in the world will spark a boom in US manufacturing, as firms return factories to their home turf.
But in reality the chances are just as high, if not higher, that it causes chaos in global trade – with wildly unpredictable results for dozens of countries, including the US – and the UK.
Read more: 6 bombshells from Donald Trump’s tariff announcement – and what it means for us
Italian PM Giorgia Meloni said the introduction by the U.S. of new tariffs against the European Union is a “wrong” measure that doesn’t favor either side.
“We will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players,” Meloni said in Facebook post. “In any case, as always, we will act in the interest of Italy and its economy, also by discussing with other European partners.”
Trump has signed an executive order that the White House said would close a “loophole” on small-ticket imported goods from China.
The action seeks to scrap exceptions that had shieled from tariffs imported goods from China worth less than $800.
This is legally known as the “de minimus” treatment. It suggests that the cost of what’s being imported was too low to merit a tariff.
Trump’s action means goods from China would no longer get the exception.
His new round of sweeping tariffs also seeks to end similar exceptions for imports from all countries, but only once the U.S. government has the personnel to properly process such imports.
That means imported goods from most of the world worth less than $800 would eventually also lose their exceptions.
The makers of Parmigiano Reggiano cheese said the additional 20% tariff would raise to 35% duties on imports of the Italian hard cheese to the United States, its chief export market with a 22.5% share.
“Certainly the news does not make us happy, but Parmigiano Reggiano is a premium product and the increase in price does not automatically lead to a reduction in consumption,” Nicola Bertinelli, president of the Parmigiano Reggiano Consortium, said in a statement.
He said they intend to negotiate in a bid to drop the additional tariff since Italian Parmigiano Reggiano — made exclusively with milk produced in a defined area of the Emilia Romagna region and aged for at least 12 months — is not in competition with U.S.-made parmesan cheese. He called it “absurd” to hit a product like Parmigiano Reggiano to protect the American market.
Irish deputy premier Simon Harris said US tariffs represent a “huge challenge”.
In a statement, he said: “I deeply regret the announcement on tariffs made by President Trump tonight.
“As I have been saying for some time, there are no winners when it comes to tariffs – they are bad for consumers, put jobs at risk, and drive up costs and uncertainty for business.
He added: “I must be honest tonight that a 20% blanket tariff on goods from all EU countries could have a significant effect on Irish investment and the wider economy and the impact of what has been announced is likely to be felt for some time.
“These tariffs are in addition to the tariffs on steel and aluminium (25%) and auto sector (25%) that the US announced last month.
“It represents a huge challenge to Irish exporters to the US across all sectors. Work is already underway to mitigate this and we are already taking concrete steps to boost our domestic competitiveness and investing in our infrastructure.”
The US is a key export market for Scotch whisky producers, who will now face having their drink become more expensive for consumers across the Atlantic.
A spokesman 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.”
UK Steel has condemned further tariffs imposed on the UK by US President Donald Trump.
UK Steel director general, Gareth Stace, said: “Three weeks ago, President Trump delivered a cataclysmic strike to UK steel exports for US manufacturers.
“The new 10% tariffs, stacked on top of the existing 25% levies, are not only sticking the knife in again, but this time turning it in the wound for maximum effect.
“The UK Government must continue its efforts to strike a deal with the US, but we recognise that this requires willingness from both sides. Domestic trade policy on the other hand is entirely within the Government’s gift and it can immediately take action to strengthen our trade defences.
“We cannot afford to wait any longer as our exports are being damaged, and our market is being undercut by rising imports. UK Steel has warned that the steel crisis has been deepening for some time and bold, decisive and significant interventions are needed now.”
The Business Secretary has said that “nothing is off the table” following Donald Trump’s announcement of tariffs.
Jonathan Reynolds said that the UK is “committed” to doing a deal with the US which he hopes “will mitigate the impact of what has been announced today”.
In a statement following the announcement, Mr Reynolds said: “The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act. We will continue to engage with UK businesses including on their assessment of the impact of any further steps we take.
“Nobody wants a trade war and our intention remains to secure a deal. But nothing is off the table and the Government will do everything necessary to defend the UK’s national interest.”
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