Following a turbulent 48 hours, Donald Trump’s 10% tax on all imports from several nations, including the UK, has gone into effect.
US customs officers started collecting the unilateral levy at US seaports, airports, and customs warehouses. Next week, higher duties on products from 57 major trade partners, including the EU, which will be subject to a 20% rate, are scheduled to begin.
Following talks on Friday with Italian Prime Minister Giorgia Meloni and Australian Prime Minister Anthony Albanese, during which the leaders agreed that a all-out trade war would be extremely damaging, Keir Starmer was scheduled to spend the weekend discussing the tariffs with foreign leaders.
As they worked to negotiate a trade deal with the US in the hopes of receiving some exemption from the tariffs, UK officials have so far refrained from criticising Trump. The UK government, however, has compiled a list of goods that may be targeted in retaliation and has been in consultation with companies over the potential effects of any countermeasures.
The world’s financial markets were rocked by Trump’s announcement of the tariffs on Wednesday. By Friday’s closing, the S&P 500 firms’ stock market value had dropped by $5 trillion, a record two-day decrease. Investors turned to government bonds for protection when commodity and oil prices plummeted.
The nations that were first affected by the 10% fee were Saudi Arabia, Egypt, Argentina, Colombia, Australia, and the United Kingdom.
On Wednesday, Trump’s increased “reciprocal” tariff rates of 11% to 50% are scheduled to go into effect at 12:01 CT. Trump’s total additional tariffs on China will reach 54%. EU imports will be subject to a 20% levy, while Chinese exports would be subject to a 34% tariff.
Since Canada and Mexico are still subject to a 25% tax on commodities that do not adhere to the US-Mexico-Canada rules of origin, they were spared from Trump’s most recent levies. This is due of the US fentanyl issue.
