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From midnight on Monday, Donald Trump’s tariffs on Mexico, Canada, and China came into effect. But what are they and what do they mean for the UK?
The second-time president claims the tariffs – taxes on goods imported into the US – will help reduce illegal migration and the smuggling of the synthetic opioid fentanyl to the US.
In a White House speech on Monday, Mr Trump confirmed 25% tariffs on goods from Mexico and Canada and the doubling of tariffs on Chinese imports – from 10% to 20%. Canadian energy will be levied at 10%, he added.
China responded immediately, with 15% taxes on food and agricultural products it sends to the US – worth around $21bn (£16.5bn).
Canadian Prime Minister Justin Trudeau also retaliated with 25% tariffs on $30bn (£23.6bn) of US imports. Mexican President Claudia Sheinbaum said she would unveil her countermeasures on Sunday.
Both Ms Sheinbaum and Mr Trudeau have promised extra troops at their US borders to combat illegal migration, in a bid to stop an all-out trade war with Mr Trump.
But he appears determined to go even further, targeting other countries, including those in the European Union, which he claims was created to “screw” the US.
Will Trump target UK with tariffs?
No new US tariffs have been announced on the UK.
And Prime Minister Sir Keir Starmer’s successful White House visit raised hopes Britain could avoid Mr Trump’s recent wave of them.
“I think there’s a very good chance that in the case of these two great, friendly countries, I think we could very well end up with a real trade deal where the tariffs wouldn’t be necessary. We’ll see,” the president told reporters afterwards.
Mr Trump is largely concerned with trade deficits – when you import more goods from another country than you send there in return.
The US does not have a trade deficit with Britain – so UK ministers have previously suggested this could be good news for avoiding new levies.
Ed Conway analysis:
How UK could avoid Trump’s trade war by…
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