Trump's latest wave of tariffs comes into force at lower rate after EU and UK backlash
Donald Trump's latest wave of global tariffs has come into force but at a lower rate than he previously warned, following backlash from the US’ allies.
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Fresh 10 per cent levies came into force at 5am UK time, replacing Trump’s so-called “liberation day” tariffs after the Supreme Court ruled they were illegal.
In response to the ruling, Trump initially threatened to hit every country on earth with 15 per cent levies, but was forced to lower that to 10 per cent after the EU said it would halt plans to ratify its trade deal with the US.
The UK also warned “nothing is off the table” in response to the tariffs.
Read more: ‘Nothing off the table’ in UK response to latest Trump tariffs, No 10 says
No 10 left open the possibility that the UK could impose reciprocal trade levies on American goods and services, but insisted that it was focused on “constructive engagement” with the Trump administration as a trade war would harm businesses.
Asked on Monday about what steps the Government planned to take in response to the US president, the Prime Minister’s official spokesman said: “Our approach to the US has always been pragmatic.
“We continue to have productive conversations with them… and those discussions are happening at all levels, but nothing is off the table at this stage.
“Industry doesn’t want to see a trade war where both sides keep escalating the situation, and that’s why our focus is on constructive engagement with our US counterparts to retain the UK’s competitive advantage.”
Mr Trump signed an executive order on Friday night that enabled him to bypass Congress and impose a 10% tax on imports from around the world, after his “reciprocal tariffs”, introduced under an emergency powers law in April, were struck down by the US Supreme Court.
In a post on Truth Social on Saturday, he then said he would be raising this rate to 15% following the “ridiculous, poorly written and extraordinarily anti-American decision on tariffs issued yesterday”.
Business Secretary Peter Kyle spoke to his US counterpart Jamieson Greer over the weekend and “underlined his concerns about further uncertainty for business and reinforced the need to honour the UK-US deal”, the Prime Minister’s spokesman said.
Mr Greer has indicated the US will abide by previously struck deals despite the new tariffs, according to reports.
Britain had received the lowest tariff rate of 10% and a subsequent agreement struck by Prime Minister Sir Keir Starmer and Mr Trump saw further carve-outs for the country’s steel industry and car manufacturers.