Trump tariffs recap: US President delivers long-awaited 'Liberation Day' speech - and reveals how Britain's economy will be affected

US Secretary of State Marco Rubio travels this week to a gathering of top diplomats from NATO countries and is sure to find allies that are alarmed, angered and confused by the Trump administration's desire to reestablish ties with Russia and its escalating rhetorical attacks on longtime transatlantic partners.

Allies are deeply concerned by President Donald Trump's readiness to draw closer to Russian leader Vladimir Putin, who sees NATO as a threat, amid a U.S. effort to broker a ceasefire in Ukraine. Recent White House comments and insults directed at NATO allies Canada and Denmark - as well as the military alliance itself - have only increased the angst, especially as new U.S. tariffs are taking effect against friends and foes alike.

Rubio arrives in Brussels on Thursday for two days of meetings with his NATO counterparts and European officials, and he can expect to be confronted with questions about the future U.S. role in the alliance. With him on the trip will be newly confirmed U.S. ambassador to NATO Matt Whitaker.

Canadian prime minister Mark Carney has revealed his nation will enact retaliatory measures against Donald Trump's tariffs.

He said ahead of a cabinet meeting: 'It's essential to act with purpose and with force, and that's what we will do.'

David French, the executive vice president of government relations at the National Retail Federation, a US trade body, said: 'More tariffs equal more anxiety and uncertainty for American businesses and consumers.

'While leaders in Washington may not care about higher prices, hardworking American families do.'

The organisation earlier released a statement sayin that tariffs 'at this scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open.'

University of Michigan economist Justin Wolfers has slammed the Trump administration's decision to impose tariffs on other nations.

He wrote on BlueSky: 'There's no question that today's tariff announcement will give the United States the highest tariff rates of any industrialized country. And it's not even close.'

US Treasury Secretary tried soothing panicked countries, telling them not to 'panic' over the mass tariffs.

He told Bloomberg: 'I would advise none of the countries to panic. I wouldn’t try to retaliate because as long as you don’t retaliate this is the high end of the number.

'I think the market could have certainty that this is the number barring retaliations.

'So we’ve got a ceiling and we can see if there’s a different floor.'

Italian farming and food body Coldretti warned that American consumers of Italian food and wine would have to pay an additional €1.6bn (£1.33bn) if they want to consume the same goods.

The group said the 20% tariff would slam consumers of fine wine and Parmigiano Reggiano cheese, which would likely lead to them being replaced by goods from inauthentic and 'Italian-sounding' brands.

The association called for 'a diplomatic solution that can be carried forward at a European level.'

According to the White House, certain good including steel and aluminium will be exempt from the tariffs.

Other materials include copper, pharmaceuticals, semiconductors, gold bullion, and lumber.

A White House handout reads: 'All articles that may become subject to future Section 232 tariffs; (5) bullion; and (6) energy and other certain minerals that are not available in the United States.'

The White House has tonight said the tariff will remain in place until countries have 'satisfied, resolved, or mitigated' trade issues with the US.

It said in a statement: 'These tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying non-reciprocal treatment is satisfied, resolved, or mitigated.'

Australian PM Anthony Albanese said Donald Trump's decision to impose tariffs on Australia had 'no basis in logic', and accused him of being protectionist.

'This is not the act of a friend', he said, adding that his nation would not immediately impose retaliatory tariffs: '[Australia will not] join a race to the bottom that leads to higher prices and slower growth.'

Ireland's deputy prime minister and minister for trade Simon Harris tonight said Trump's decision to hit the EU with a 20% tariff was regrettable.

He said in a statement: '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.'

Trump last month lambasted Ireland for taking American pharma companies like Pfizer away from the US thanks to low taxes.

The International Chamber of Commerce, which represents 45 million businesses in 170 countries, said retaliation would be a 'lose-lose game.'

The global body's secretary-general said:

'This is, without doubt, a shock to the global trading system but it need not result in a systemic crisis. The US is an economic superpower but only accounts for 13 per cent of global imports.

'We are immediately concerned by the potential impact of the severe tariffs imposed on a range of emerging economies — an approach which risks further damaging the development prospects of countries already facing worsening terms of trade.

Stocks in shoe giant Nike fell 6.4% in after-hours trading, after the US imposed a massive 46% tariff on Vietnam, where many of the company's shoes are made.

Fashion brand Abercrombie and Fitch, which gets about 35% of its wares from Vietnam and 22% from Cambodia, both hit with massive tarrifs, fell 7.7%.

Gap, meanwhile, fell by 11% - it gets 27% of its good from Vietnam and 19% from Indonesia.

Andrew Griffith, the shadow trade secretary, tonight slammed the Labour government for failing to get a better deal with Donald Trump.

He said: 'This is disappointing news which will worry working families across the country.

'Labour failed to negotiate with President Trump’s team for too many months after the election, failed to keep our experienced top trade negotiator, and failed to get a deal to avoid the imposition of these tariffs by our closest trading partner.

'The Chancellor’s emergency Budget of just a week ago with its inadequate headroom is now at risk, casting uncertainty about more taxes or spending cuts.

'Sadly, it is British businesses and workers who will pay the price for Labour’s failure.

'The silver lining is that Brexit - which Labour ministers voted against no less than 48 times - means that we face far lower tariffs than the EU: a Brexit dividend that will have protected thousands of British jobs and businesses.

'President Trump is an admirer of Britain and our negotiations in government showed he wants to do a deal. Labour must swallow their pride, put Britain’s first and get back round the negotiating table to agree a fair deal to protect jobs and consumers in both the UK and the US alike.'

The Society of Motor Manufacturers and Traders Ltd (SMMT) described the imposition of tariffs by US President Donald Trump as 'deeply disappointing'.

Mike Hawes, SMMT chief executive, said: 'The announced imposition of a 10% tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure.

'Our cars were already set to attract a punitive 25% tariff overnight and other automotive products are now set to be impacted immediately. While we hope a deal between the UK and US can still be negotiated, this is yet another challenge to a sector already facing multiple headwinds.

'These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.

'Trade discussions must continue at pace, therefore, and we urge all parties to continue to negotiate and deliver solutions which support jobs, consumer demand and economic growth across both sides of the Atlantic.'

European Commission president Ursula von der Leyen, who is in Uzbekistan at a summit, will give the EU’s reaction at 4am UK time tomorrow.

The UK’s manufacturing trade representative body Make UK, said the 10% tariff the US imposed on UK exports will be 'devastating.'

Stephen Phipson, chief executive of Make UK said it would make massive direct and indirect impacts.

'The US President’s announcement of 10% tariffs on UK goods exported to the United States and 25% tariffs on British made autos, steel and aluminium is devastating for UK manufacturing.

'Even without a formal preferential trade agreement, the UK and US have for decades enjoyed a balanced trade relationship, with mutual collaboration and investment that has helped job creation, growth and shared endeavour on both sides of the Atlantic.

'It is highly disappointing that the strength of this relationship, at a time of where both countries need to boost shared growth, employment opportunities and innovation options, does not extend to enhancing free trade rather the reverse, the consequences of which will immediately harm the US consumer and economy too.'

Jonathan Reynolds, the UK's business secretary, said Britain's approach to business with the US would be to remain 'calm and committed' to make economic deals with America.

Downing Street sources told Sky's Beth Rigby that the 10% tariff rate imposed on UK imports is a 'good outcome' that shows Britain is 'is in the friendlies club, as much as that is worth anything.'

'No tariffs are good, not what we want. [That they are] lower than others vindicates our approach.

'This is important because the difference between 20% [tariffs] and 10% is lots of jobs."

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

Trump has now completed his speech, and has handed over to a White House official to continue speaking.

Senator Dick Durbin, a Democrat from Illinois, said in a statement: 'The president is risking a recession with this national sales tax he calls tariffs — while needlessly alienating our closest allies.

He added: 'When American families see what this does to the price of goods, such as cars, groceries, and gas, it is going to create a negative economic force across this country and cost a lot of American jobs.'

Trump claimed that he is expecting kings, queens and ambassadors from other countries to call him 'soon' to discuss tariff exemptions.

But, he said, the only way to get them is to 'terminate your own tariffs, drop your barriers, don't manipulate your currencies.. and start buying tens of billions of dollars of American goods.'

Tom Jervis, a consumer reporter at Auto Express, said: 'As was widely predicted, President Trump has today confirmed a 25% tariff on all foreign made cars, marking a serious setback for the UK automotive sector – an industry which is already under immense pressure. Last year alone, the UK exported around £9 billion worth of vehicles to the US—accounting for 15% of our total exports to the country.

'A tariff of this scale will make British-made cars significantly less competitive, forcing manufacturers to make difficult choices, with Land Rover and MINI especially exposed given the US is JLR’s biggest market, ahead of even the UK and China.

'In the worst-case scenario, we could see factory closures or production shifting to the US to avoid the tariffs, leading to job losses and further economic strain.

'The UK automotive sector has already been battling challenges, from the strict ZEV mandate to rising competition from China, and this latest blow will only add to the uncertainty.

'The government cannot afford to stand by—it must take urgent action to support the industry, whether through further trade negotiations or direct intervention. The automotive sector remains the backbone of UK manufacturing, and without proper support, the economic consequences could be severe, affecting not just workers in the industry but consumers and businesses across the country.'

The 10% tariff imposed on the UK by the US appears to be among the better deals, with China facing 34%, India facing 26% and Taiwan 32%.

The S&P 500 has fallen 1.8% in extended trading hours during the Trump tariff speech.

According to a chart held up by Donald Trump, the US will impose no more than the baseline 10% tariff.

The EU, meanwhile, will be charged 20%.

Donald Trump says he will impose a 10% baseline tariff on all nations, including the UK.

These tariffs will apply from tomorrow morning.

The president criticised the EU, as well as Asian countries, for placing tariffs on American cars.

It comes after the White House confirmed a 25% tariff on all foreign vehicles from midnight tonight.

In a shock statement, the president said the US has been 'looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.'

He said that 'hardworking American citizens' have for years been forced to 'sit on the sidelines as other nations got rich and powerful.'

Trump claims that America has been taken advantage of by 'cheaters' and has been 'pillaged' by foreigners.

'Our taxpayers have been ripped off for more than 50 years, but it is not going to happen anymore,' he added

Donald Trump has now say he will shortly sign an 'historic executive order instituting reciprocal tariffs on countries throughout the world.'

'Reciprocal. That means they do it to us and we do it to them. Very simple. Can't get any simpler than that.'

'We have some very, very good news today,' he says: 'A lot of good things are happening for our country.

'This is Liberation Day. 2 April 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.'

Donald Trump has appeared in the White House's Rose Garden to applause and a rendition of Hail to the Chief

Markets remained volatile on Wednesday ahead of Trump's tariff plans.

For weeks, Trump has pegged April 2 as 'Liberation Day', when he plans to impose an array of new tariffs that could upend the global trade system with big implications for corporate earnings, global growth, inflation and Federal Reserve interest rate policy.

A person familiar with the administration's deliberations told Reuters the tariffs are expected to be significant, hitting a wide range of countries, including close allies.

Investors had kicked off the year with high hopes for pro-growth policies from Trump but have been spooked by a barrage of tariff-related headlines.

While investors broadly agree the long-awaited announcement could be pivotal near-term for global financial markets, they are unsure about which way prices will swing and what will come next as negotiations could be protracted.

'I can't recall a situation where the stakes were this high and yet the outcome was so unpredictable,' said Steve Sosnick, chief strategist at Interactive Brokers. 'The devil is going to be in the details and nobody knows the details.'

Trump is expected to appear at 9pm UK time - he is set to appear with his entire cabinet, as well as leaders of blue collar industries.

House Speaker Mike Johnson can be seen smiling in the White House's Rose Garden, as the world waits with bated breath to see what announcements Trump will make

Trump has already imposed 20% duties on all imports from China and 25% duties on steel and aluminum and extended them to nearly $150 billion worth of downstream products.

He has postponed a 25% tariff on most Canadian and Mexican goods to pressure them to crack down on drug trafficking and immigration, though that is due to expire on Wednesday.

Starmer said the US-UK trade talks are 'well advanced' yesterday, a day before Trump's so-called Liberation Day.

He told Sky that the UK is 'working hard on an economic deal' with the US, and said 'rapid progress' had been made.

But the prime minister begrudgingly admitted: 'Look, the likelihood is there will be tariffs. Nobody welcomes that, nobody wants a trade war.

'But I have to act in the national interest and that means all options have to remain on the table.