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What are tariffs, how do they work and why is Trump using them? What are tariffs, how do they work and why is Trump using them?
(about 1 hour later)
Watch: What is a tariff? The BBC's Adam Fleming explainsWatch: What is a tariff? The BBC's Adam Fleming explains
US President Donald Trump has announced sweeping tariffs on goods imported from the rest of the world.US President Donald Trump has announced sweeping tariffs on goods imported from the rest of the world.
Trump claims that a 10% tariff on all nations and much higher rates of up to 50% on individual countries will boost the US economy and protect jobs.Trump claims that a 10% tariff on all nations and much higher rates of up to 50% on individual countries will boost the US economy and protect jobs.
However, there are warnings that prices will rise for US consumers and that the move could harm the world economy.However, there are warnings that prices will rise for US consumers and that the move could harm the world economy.
What are tariffs and how do they work?What are tariffs and how do they work?
Tariffs are taxes charged on goods bought from other countries.Tariffs are taxes charged on goods bought from other countries.
Typically, they are a percentage of a product's value. For example, a 25% tariff on a $10 (£7.59) product would mean an additional $2.50 (£1.90) charge.Typically, they are a percentage of a product's value. For example, a 25% tariff on a $10 (£7.59) product would mean an additional $2.50 (£1.90) charge.
Companies that bring the foreign goods into the country have to pay the tax to the government.Companies that bring the foreign goods into the country have to pay the tax to the government.
Firms can choose to pass on some or all of the cost to customers.Firms can choose to pass on some or all of the cost to customers.
Follow live: European markets open higher after days of losses as China vows to fight Trump tariffs Follow live: 'Nothing off the table' in trade talks with US, Reeves says as markets stabilise
'Sometimes you have to take medicine': Trump defends sweeping tariffs'Sometimes you have to take medicine': Trump defends sweeping tariffs
Why is Trump using tariffs?Why is Trump using tariffs?
For decades, Trump has argued that the US should use tariffs to boost its economy.For decades, Trump has argued that the US should use tariffs to boost its economy.
He says they will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment in the country.He says they will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment in the country.
Trump wants to reduce the gap between the value of goods the US buys from other countries and the value of those it sells to them. He argues that America has been taken advantage of by "cheaters" and "pillaged" by foreigners.Trump wants to reduce the gap between the value of goods the US buys from other countries and the value of those it sells to them. He argues that America has been taken advantage of by "cheaters" and "pillaged" by foreigners.
Trump has also made other demands alongside tariffs.Trump has also made other demands alongside tariffs.
The first taxes announced during his current presidential term targeted China, Mexico and Canada. He said he wanted them to do more to stop migrants and illegal drugs reaching the US.The first taxes announced during his current presidential term targeted China, Mexico and Canada. He said he wanted them to do more to stop migrants and illegal drugs reaching the US.
Why this is the biggest change to global trade in 100 yearsWhy this is the biggest change to global trade in 100 years
Trump's tariffs are a longtime goal fulfilled - and his biggest gamble yetTrump's tariffs are a longtime goal fulfilled - and his biggest gamble yet
Trump's tariffs are expected to significantly disrupt US car production and put up pricesTrump's tariffs are expected to significantly disrupt US car production and put up prices
What are Trump's 'reciprocal tariffs'?What are Trump's 'reciprocal tariffs'?
Trump's minimum 10% tariff on all imports to the US was introduced on 5 April.Trump's minimum 10% tariff on all imports to the US was introduced on 5 April.
The UK, Argentina, Australia, Brazil and Saudi Arabia are among the countries this applies to.The UK, Argentina, Australia, Brazil and Saudi Arabia are among the countries this applies to.
However, many nations will face much higher tariffs, from 9 April.However, many nations will face much higher tariffs, from 9 April.
These tariffs include 49% on Cambodian products, 46% on Vietnamese imports and 20% on goods from the EU.These tariffs include 49% on Cambodian products, 46% on Vietnamese imports and 20% on goods from the EU.
Chinese imports would face a 54% tariff (an extra 34% on top of 20% which had been previously announced).Chinese imports would face a 54% tariff (an extra 34% on top of 20% which had been previously announced).
However, China said in response that there would be a 34% retaliatory tariff on US goods. Trump then threatened to introduce a further 50% tariff on China - meaning a 104% tariff on some products. China has vowed to "fight to the end".However, China said in response that there would be a 34% retaliatory tariff on US goods. Trump then threatened to introduce a further 50% tariff on China - meaning a 104% tariff on some products. China has vowed to "fight to the end".
White House officials described the higher tariffs - on countries Trump called the "worst offenders" - as "reciprocal".White House officials described the higher tariffs - on countries Trump called the "worst offenders" - as "reciprocal".
Reciprocal would mean they were based on what countries already charge the US in the form of existing tariffs, plus non-tariff barriers such as regulations.Reciprocal would mean they were based on what countries already charge the US in the form of existing tariffs, plus non-tariff barriers such as regulations.
However, this is not what has happened for all of the countries on the list.However, this is not what has happened for all of the countries on the list.
Instead the tariff rate was calculated on the basis that it would eliminate the US's goods trade deficit with each country.Instead the tariff rate was calculated on the basis that it would eliminate the US's goods trade deficit with each country.
Some countries, including the UK, have had tariffs applied even though they buy more from the US than they sell to it.Some countries, including the UK, have had tariffs applied even though they buy more from the US than they sell to it.
Three things to know about Trump's tariffs announcementThree things to know about Trump's tariffs announcement
At a glance: Trump's tariffs on China, EU and moreAt a glance: Trump's tariffs on China, EU and more
BBC Verify: How were Donald Trump's tariffs calculated?BBC Verify: How were Donald Trump's tariffs calculated?
Trump had also previously announced 25% tariffs on goods from Mexico and Canada, and a 10% tariff on Canadian energy imports. However, he then announced some exemptions and delays.Trump had also previously announced 25% tariffs on goods from Mexico and Canada, and a 10% tariff on Canadian energy imports. However, he then announced some exemptions and delays.
He has also brought in 25% tariffs on all steel and aluminium imports, and foreign-made cars. A 25% tariff on car parts is due to start at a later date.He has also brought in 25% tariffs on all steel and aluminium imports, and foreign-made cars. A 25% tariff on car parts is due to start at a later date.
Will prices go up for US consumers?Will prices go up for US consumers?
Many economists expect tariffs to push up prices across a range of imported goods, as firms pass on some or all of their increased costs.Many economists expect tariffs to push up prices across a range of imported goods, as firms pass on some or all of their increased costs.
The products affected could include everything from clothing to coffee and alcohol to electronics.The products affected could include everything from clothing to coffee and alcohol to electronics.
Some firms may also decide to import fewer foreign goods, which could make those which are available more expensive.Some firms may also decide to import fewer foreign goods, which could make those which are available more expensive.
The price of goods manufactured in the US using imported components may also rise.The price of goods manufactured in the US using imported components may also rise.
For example, car parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.For example, car parts typically cross the US, Mexican and Canadian borders multiple times before a vehicle is completely assembled.
Car prices had already been expected to increase as a result of earlier tariffs.Car prices had already been expected to increase as a result of earlier tariffs.
The cost of a car made using parts from Mexico and Canada alone could rise by $4,000-$10,000 (£3,035 - £7,588) depending on the vehicle, according to analysts at the Anderson Economic Group.The cost of a car made using parts from Mexico and Canada alone could rise by $4,000-$10,000 (£3,035 - £7,588) depending on the vehicle, according to analysts at the Anderson Economic Group.
The measures could also hit the US economy.The measures could also hit the US economy.
The chance of a recession rose to 50% after Trump's announcement on new tariffs, according to former International Monetary Fund (IMF) chief economist Ken Rogoff.The chance of a recession rose to 50% after Trump's announcement on new tariffs, according to former International Monetary Fund (IMF) chief economist Ken Rogoff.
Trump's top officials have stressed that the tariffs would be implemented as planned, playing down recession fears.Trump's top officials have stressed that the tariffs would be implemented as planned, playing down recession fears.
Americans could pay more for these everyday basics under Trump's new tariffsAmericans could pay more for these everyday basics under Trump's new tariffs
Trump has turned his back on the foundation of US economic mightTrump has turned his back on the foundation of US economic might
Trump's agenda grapples with political and economic realityTrump's agenda grapples with political and economic reality
What has happened to stock markets?What has happened to stock markets?
Trump's tariffs announcement has caused volatility on global stock markets.Trump's tariffs announcement has caused volatility on global stock markets.
Stock markets are where firms sell shares in their business. They reflect the best guess of what every company in the world is worth and what their future profits will be.Stock markets are where firms sell shares in their business. They reflect the best guess of what every company in the world is worth and what their future profits will be.
Share prices were hit because investors think the new tariffs will increase costs and reduce profits.Share prices were hit because investors think the new tariffs will increase costs and reduce profits.
Many people are affected by stock prices - even if they don't invest in them directly - because there can be an impact on things like pensions, jobs and interest rates.Many people are affected by stock prices - even if they don't invest in them directly - because there can be an impact on things like pensions, jobs and interest rates.
Trump's game of chicken over tariffs leaves world guessingTrump's game of chicken over tariffs leaves world guessing
How does it affect me if share prices fall?How does it affect me if share prices fall?
Stocks, tariffs and pensions - your questions answeredStocks, tariffs and pensions - your questions answered
How will Trump's tariffs affect the UK?How will Trump's tariffs affect the UK?
The UK exported around £58bn of goods to the US in 2024, mainly cars, machinery and pharmaceuticals.The UK exported around £58bn of goods to the US in 2024, mainly cars, machinery and pharmaceuticals.
It was already due to be affected by the earlier tariffs targeting steel, aluminium and car imports.It was already due to be affected by the earlier tariffs targeting steel, aluminium and car imports.
Prime Minister Sir Keir Starmer said "clearly there will be an economic impact" from the 10% tariff. However, he said US-UK trade talks are ongoing, and that he will "fight for the best deal for Britain".Prime Minister Sir Keir Starmer said "clearly there will be an economic impact" from the 10% tariff. However, he said US-UK trade talks are ongoing, and that he will "fight for the best deal for Britain".
The UK government has so far not announced any taxes on US imports. However, it is drawing up a list of US products it could hit with retaliatory tariffs.The UK government has so far not announced any taxes on US imports. However, it is drawing up a list of US products it could hit with retaliatory tariffs.
Following the announcement of tariffs, car maker Jaguar Land Rover said it would "pause" all shipments to the US as it worked to "address the new trading terms".Following the announcement of tariffs, car maker Jaguar Land Rover said it would "pause" all shipments to the US as it worked to "address the new trading terms".
Economists have warned US tariffs could knock the UK's economy off course and make it harder for the government to hit its borrowing rules.Economists have warned US tariffs could knock the UK's economy off course and make it harder for the government to hit its borrowing rules.
Chris Mason: UK relief but not delight at Trump tariffsChris Mason: UK relief but not delight at Trump tariffs
Three ways Trump's tariffs might affect you and your moneyThree ways Trump's tariffs might affect you and your money
How have other countries responded to Trump's tariffs?How have other countries responded to Trump's tariffs?
EU chief Ursula von der Leyen warned that "the consequences will be dire for millions of people around the globe".EU chief Ursula von der Leyen warned that "the consequences will be dire for millions of people around the globe".
Canada's Prime Minister Mark Carney said it was "essential to act with purpose and with force".Canada's Prime Minister Mark Carney said it was "essential to act with purpose and with force".
Italy's Giorgia Meloni - a Trump ally - said the announcement was "wrong" but that she would work towards a deal with the US to "prevent a trade war".Italy's Giorgia Meloni - a Trump ally - said the announcement was "wrong" but that she would work towards a deal with the US to "prevent a trade war".
In the Republic of Ireland, Micheál Martin said there was "no justification" for "deeply regrettable" tariffs which benefitted "no-one".In the Republic of Ireland, Micheál Martin said there was "no justification" for "deeply regrettable" tariffs which benefitted "no-one".
Australia's Anthony Albanese said "this is not the act of a friend".Australia's Anthony Albanese said "this is not the act of a friend".
South Korea's acting president Han Duck-Soo said "the global trade war has become a reality".South Korea's acting president Han Duck-Soo said "the global trade war has become a reality".
Japan said its 24% levy was "extremely regrettable" and could violate World Trade Organization and US-Japan agreements.Japan said its 24% levy was "extremely regrettable" and could violate World Trade Organization and US-Japan agreements.