Trump tariffs live: US unveils 10% reciprocal tariff on imports from UK and 20% on EU in global trade shake-up

The prime minister will face some brickbats for failing to win a carve-out from tariffs with what many see as a fawning approach to Donald Trump, writes David Maddox, The Independent’s political editor.

But as the world digests the stunning news of reciprocal tariffs unleashed around the globe, Sir Keir Starmer can take some satisfaction from his work and have hope that for the UK at least there is a quick resolution to this nightmare.

As Downing Street was quick to point out, the 10 per cent minimum tariff being imposed on the UK is much better than others, most notably the EU. This literally is the difference between saving and losing many thousands of jobs.

There have been positive noises from Downing Street that despite issues around free speech concerns from the US, the UK and America are close to a trade deal which would even see these tariffs go away.

There is though a very much wait-and-see on that.

So while Starmer and his ministers can take some satisfaction now from their efforts there is still a lot of work ahead and high stakes. These tariffs wipe out the chancellor Rachel Reeves’ economic headroom.

A failure to get rid of them will leave the UK government in a lot of trouble.

At least one Brexiteer has suggested European manufacturers move their businesses to the UK to benefit from the lower 10% tariff than the 20% in the EU.

The head of the British Chambers of Commerce says the new tariffs will wreak havoc on business communities globally, driving up prices, but that retaliatory tariffs should be only a last resort.

Shevaun Haviland, director general, 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 business 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.

“The UK is not without influence, our bilateral trade with the US is worth £300 billion, we have £500 billion invested there and it has £700 billion tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for Government to consider.”

She said decisions on taxes would need to be taken very carefully, and the government should keep everything on the table during talks, but retaliatory tariffs should only be a last resort.

“Many firms, especially SMEs, will now be facing difficult decisions and we urge government to do all it can to provide practical support to them.”

Italian prime minister Giorgia Meloni said Mr Trump’s new tariffs were wrong, and that she hoped to work with the US and Europe to avoid a trade war that would weaken the West.

The prime minister’s office hinted at relief that the announcement wasn’t worse.

A Downing Street source said: “We don’t want any tariffs at all, but a lower levy than others vindicates our approach.

“It matters because the difference between 10% and 20% is thousands of jobs.

“We will keep negotiating, keep cool and keep calm. We want to negotiate a sustainable trade deal, and of course to get tariffs lowered. Tomorrow we will continue with that work.”

No immediate retaliatory measures are expected from the government as it focuses on trying to strike the hoped-for economic deal with the US.

But experts say more than 25,000 UK car manufacturing jobs could be at risk from the 25% tariff on cars.

There is “no justification” for US tariffs that will hit Ireland, Irish premier Micheal Martin said.

The Taoiseach said: “Ireland believes in open and free trade and that the imposition of tariffs is bad for the world economy. I deeply regret the US decision to impose 20% tariffs on imports from across the European Union. We see no justification for this.”

Mr Martin said: “Now is a time for dialogue, and I believe that a negotiated way forward is the only sensible one. A confrontation is in no one’s interests.”

UK Steel has called for a significant intervention to help the industry out of a “crisis”.

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…

“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.”