Britain wins relatively favourable treatment as president accuses trading partners of looting and pillaging US
Donald Trump hit the UK with tariffs of 10% on exports to the US as he ignited a global trade war that could wipe billions off economic growth.
The US president accused other nations, including allies, of “looting, pillaging, raping and plundering” the US, as he announced tariffs on economic rivals including 20% on the EU and 34% on China as part of what he dubbed “liberation day”.
Downing Street, which had been expecting a 20% rate to be imposed on the UK, expressed relief to have escaped the higher rate, with Keir Starmer’s more conciliatory approach to the Trump administration appearing to have paid off.
However, the UK will face growth forecasts being downgraded as a result, and the tariffs could cost thousands of jobs and force the government to implement further spending cuts or tax rises this autumn.
UK ministers have ruled out imposing retaliatory barriers while talks on an economic deal with the US continue, and are hoping for further carve-outs for UK companies, which export more than £60bn worth of goods to the US a year.
In a watershed announcement for global trade, Trump announced that he was setting a universal “baseline” 10% tariff on imports into the US, while singling out dozens of trading partners for higher levies of up to 50%.
He also hit out at “exorbitant” VAT rates, which he viewed as a barrier to US firms seeking to sell into markets such as the UK where the taxes apply.
At a press conference in the White House Rose Garden, he said: “For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike … our country and its taxpayers have been ripped off for more than 50 years, but it is not going to happen any more.
“This is one of the most important days, in my opinion, in American history. It’s our declaration of economic independence. For years, hard-working American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense, but now it’s our turn to prosper.”
Addressing a crowd including his vice-president, JD Vance, the cabinet, White House aides and US workers, Trump added: “This will be, indeed, the golden age of America. It’s coming back, and we’re going to come back very strongly.”
After the announcement, Jonathan Reynolds, the business and trade secretary, said: “The US is our closest ally, so our approach is to remain calm and committed to doing this deal, which we hope will mitigate the impact of what has been announced today.
“We have a range of tools at our disposal and we will not hesitate to act … Nobody wants a trade war and our intention remains to secure a deal.
