Trump revealing details of global ‘Liberation Day’ tariffs | Money News

Donald Trump is unleashing a massive escalation in his trade war, with the UK not spared punitive tariffs set to take immediate effect.

The president is announcing his programme at a White House event entitled ‘Make America Wealthy Again’ from 9pm UK time. “This is liberation day”, he told a cheering audience of supporters while hitting out at foreign “cheaters”.

He claimed “trillions” of dollars from the “reciprocal” levies he was imposing on others’ trade barriers would provide relief for the US taxpayer and restore US jobs and factories.

His first tariff announcement was a 25% duty on all car imports from midnight – 5am on Thursday, UK time.

The ramping up of duties promises to be painful for the global economy but it could be some time before the extent of the tariffs facing the UK is clear. Tariffs on steel and aluminium are already in effect.

The uncertainty has rattled financial markets that have relied on trading arrangements that have been in place since 1947.

Follow live: Trump tariffs latest

It is predicted that America’s closest trading partners, Canada and Mexico, will face the harshest duties while Mr Trump has been particularly vocal recently in his threats against the European Union.

The president would be expected to confirm 25% tariffs on UK car exports but he could go further, it is speculated, with a so-called reciprocal tariff on some, or all, UK goods in an apparent retaliation for the UK’s 20% VAT charge.

Read more:
What do Trump’s tariffs mean for the UK?
The rewards and risks for US as trade war intensifies

Earlier, a source close to the White House told Sky’s economics and data editor Ed Conway there will different bands of tariffs.

The bands will differ both by country and by industry.

The specific band each country or industry is placed into will depend on how the White House views each country’s barriers to entry for trade.