Thousands of British jobs at risk from Trump's trade war... but EU is hit even harder as PM warns of 'economic impact' and furious Brussels vows to retaliate

Keir Starmer warned of an 'economic impact' from Donald Trump's commercialized warfare contiguous with tens of thousands of British jobs astatine hazard - contempt Brexit sparing the state adjacent worse.

The PM admitted symptom is looming arsenic helium met concern leaders successful Downing Street, including AstraZeneca's Pascal Soriot, BAE's Charles Woodburn and Jaguar Land Rover's Richard Molyneux. 

Sir Keir pledged to 'fight' for a wider commercialized woody with the US to get escaped of the tariffs - 10 per cent for the UK, positive 25 per cent connected car and alloy imports - though helium stressed that would not beryllium secured astatine immoderate cost. 

He said 'decisions we instrumentality successful coming days and weeks volition beryllium guided lone by our nationalist interest'.

'Nothing other volition usher me, that is my focus,' helium said. 'Clearly, determination volition beryllium an economical interaction from the decisions the US has taken, some present and globally.

'But I privation to beryllium crystal clear: we are prepared, so 1 of the large strengths of this federation is our quality to support a chill head.'

A elder No10 source has stressed 'no tariffs are good' but suggested the comparatively debased fig for Britain 'vindicated' the government's approach.

The EU is vowing retaliation for being hammered with 20 per cent levies, aft Mr Trump accused the bloc of 'screwing' America. Ireland voiced alarm astatine the standard of the damage, but Northern Ireland volition lone endure the 10 per cent imposed connected the UK. 

The Tories said Brexit was turning retired to beryllium a 'silver lining' for the UK, but person Kemi Badenoch added: 'President Trump’s tariffs volition not marque the US wealthier but they volition marque each of america poorer.'

Sir Keir had already acknowledged that his hopeless efforts to unafraid an exemption from Mr Trump would beryllium snubbed, contempt their lukewarm gathering successful the Oval Office. 

But determination is speculation the US volition request concessions connected a mooted integer services tax, and perchance connected nutrient standards, successful instrumentality for a wider commercialized deal.

Mr Trump swiped astatine 'exorbitant VAT taxes' successful his code - adjacent though it is simply a wide income work not targeted astatine imports. 

And helium jibed astatine 'non-monetary barriers', suggesting that obstacles specified arsenic bans connected chlorinated chickenhearted could beryllium an contented successful talks.  

Markets are braced for a stormy thrust aft Mr Trump's 'Liberation Day' announcements sparked a bloodbath successful Asia, with fears of a planetary commercialized meltdown crushing maturation and ramping up inflation.

The FTSE 100 Index dropped 122.4 points oregon 1.4 per cent to 8486.09 successful the archetypal fewer minutes aft opening. 

Tokyo's Nikkei led an Asian sell-off, collapsing much than 4 per cent, portion US futures plunged. Hong Kong, Sydney, Seoul, Manila and Bangkok gave up much than 1 per cent. There were besides losses successful Shanghai, Singapore, Wellington and Mumbai.

Safe haven golden deed a grounds precocious and the yen jumped 1 percent amid worries that retaliation volition nonstop the situation spiralling.

The dollar besides slid globally against astir currencies including the lb and the euro, making imports much costly but besides making US exports much charismatic to consumers.

Stephen Innes of SPI Asset Management said: 'President Trump walked into the Rose Garden and detonated the astir assertive commercialized daze the market's seen successful decades. This isn't a jab - it's a full-on haymaker.' 

Mr Trump imposed 10 per cent tariffs connected the UK - but deed different large economies overmuch harder. 

China volition beryllium battered with 34 per cent, and Japan 24 per cent. Cambodia and Vietnam are some nearing 50 per cent, portion nary different G7 federation has 10 per cent. 

Russia was not connected the roster astatine all, with officials saying that was due to the fact that of sanctions being successful place. 

The White House released a bizarre explainer of the calculations down the reciprocal tariffs.

It suggested that successful information they had been fixed to hitch retired goods commercialized deficits with idiosyncratic countries, alternatively of being based connected the level of tariffs imposed by partners. 

The papers acceptable an purpose of moving retired 'the reciprocal tariff that results successful a bilateral commercialized equilibrium of zero'. 

The president also confirmed determination volition beryllium a 25 per cent tariff connected each foreign-made cars, successful different stroke for Britain that experts person warned could outgo 25,000 jobs.

Industry bodies said the quality was a 'blow' and 'deeply disappointing', with immoderate suggesting exigency bailouts volition beryllium needed.

Despite the little level of tariffs, billions of pounds of exports to America by businesses are perchance affected, with fears thousands of jobs are connected the line. Steel and aluminium imports are already facing 25 per cent tariffs.

EU committee president Ursula von der Leyen said the bloc is 'finalising' its archetypal retaliation. 

'We are prepared to respond,' she said. 'We are already finalising the archetypal bundle of countermeasures successful effect to tariffs connected alloy and we're present preparing for further countermeasures to support our interests and our businesses if negotiations fail.

'We (Europe) are successful this together: if you instrumentality connected 1 of us, you instrumentality connected each of us. Our unity is our strength.'

Mr Trump said alleged 'Liberation Day' would beryllium remembered arsenic 'the time American manufacture was reborn', claiming determination had been excessively overmuch 'plunder' by different countries.

Watched by his Cabinet and blue-collar workers successful the White House Rose Garden, helium said helium wanted to rise 'trillions and trillions of dollars' and commencement a caller 'golden age'.

Mr Trump said the tariff being imposed connected UK imports was equivalent to that faced by US exports. However, astir different countries volition beryllium charged 'about half' of their ain tariffs.

Within minutes of Trump's announcement, futures tracking America's flagship S&P 500 fell 2 per cent, portion the Nasdaq dropped 3 per cent — the benignant of falls not seen since the commencement of the pandemic. 

The measures are profoundly divisive successful the US, with condemnation from Democrats who reason they volition lone thrust inflation.

Mr Trump appeared to person deliberately waited until markets were closed to marque his announcement. 

The president said helium blamed his predecessors successful the White House, alternatively than different nations for alleged commercialized imbalances, but added that 'friends' were often worse than 'foes'.

Mr Trump said helium was drafting a enactment nether 'unilateral economical surrender', and the US could beryllium 'rich'.

'In a fewer moments I volition motion a historical enforcement bid instituting reciprocal tariffs connected countries passim the world,' helium said.

'Reciprocal. That means they bash it to america and we bash it to them. Very simple, can't get immoderate simpler than that.

'This is 1 of the astir important days successful my sentiment successful American history. It's our declaration of economical independence.'

The president insisted: 'For decades, the United States slashed our commercialized barriers connected different countries portion those nations placed monolithic tariffs connected our products and created outrageous non-monetary barriers to decimate our industries.

'And successful galore cases, the non-monetary barriers were worse than the monetary ones.

'They manipulated their currency, subsidised their exports, stole our intelligence property, imposed exorbitant VAT taxes to disadvantage our products, adopted unfair rules and method standards and created filthy contamination havens.

'They were perfectly filthy, but they ever came to america and they said we're violating we should wage for it.'

Talking astir the tariffs helium is astir to enactment connected different nations, Mr Trump told the White House property conference: 'We volition complaint them astir fractional of what they are and person been charging us. So the tariffs volition beryllium not a afloat reciprocal.

'I could person done that, yes. But it would person been pugnacious for a batch of countries.'

Mr Trump said: 'I don't blasted these different countries astatine all. I blasted erstwhile presidents and past leaders.

'They fto it hap to an grade that cipher tin adjacent believe,' helium said successful a code astatine the White House.'

Businesses voiced alarm astatine the bombshell dropped by the president, portion accepting that it could person been worse for the UK. 

The Society of Motor Manufacturers and Traders Ltd (SMMT) described the imposition of tariffs arsenic 'deeply disappointing'.

Mike Hawes, SMMT main executive, said: 'The announced imposition of a 10 per cent tariff connected each UK products exported to the US, whilst little than different large economies, is different profoundly disappointing and perchance damaging measure.

'Our cars were already acceptable to pull a punitive 25 per cent tariff overnight and different automotive products are present acceptable to beryllium impacted immediately. While we anticipation a woody betwixt the UK and US tin inactive beryllium negotiated, this is yet different situation to a assemblage already facing aggregate headwinds.

'These tariff costs cannot beryllium absorbed by manufacturers, frankincense hitting US consumers who whitethorn look further costs and a reduced prime of iconic British brands, whilst UK producers whitethorn person to reappraisal output successful the look of constrained demand.'

UK Steel manager general, Gareth Stace, said: 'Three weeks ago, President Trump delivered a cataclysmic onslaught to UK alloy exports for US manufacturers.

'The caller 10 per cent tariffs, stacked connected apical of the existing 25 per cent levies, are not lone sticking the weapon successful again, but this clip turning it successful the coiled for maximum effect.

'The UK Government indispensable proceed its efforts to onslaught a woody with the US, but we recognise that this requires willingness from some sides. Domestic commercialized argumentation connected the different manus is wholly wrong the Government's acquisition and it tin instantly instrumentality enactment to fortify our commercialized defences.

'We cannot spend to hold immoderate longer arsenic our exports are being damaged, and our marketplace is being undercut by rising imports. UK Steel has warned that the alloy situation has been deepening for immoderate clip and bold, decisive and important interventions are needed now.'

Rain Newton-Smith, main enforcement of the CBI said: 'Business has been clear: determination are nary winners successful a commercialized war. Last night's announcements are profoundly troubling for businesses and volition person important ramifications astir the world.

'A chill and calm absorption from the UK Government is the close response: UK firms request a measured and proportionate attack which avoids further escalation. Retaliation volition lone adhd to proviso concatenation disruption, dilatory down investment, and stoke volatility successful prices.'

The Federation of Small Businesses (FSB) said 59 per cent of tiny UK exporters presently merchantability into the US market, suggesting exigency enactment volition beryllium needed.

'Tariffs volition origin untold harm to tiny businesses trying to commercialized their mode into nett portion the home system remains flat,' Tina McKenzie, the FSB's argumentation seat said.

Business Secretary Jonathan Reynolds said the US 'is our closest ally' and ministers would 'remain calm and committed' to reaching agreement. 

In a connection pursuing the announcement, helium said: 'The US is our closest ally, truthful our attack is to stay calm and committed to doing this deal, which we anticipation volition mitigate the interaction of what has been announced.

'We person a scope of tools astatine our disposal and we volition not hesitate to act. We volition proceed to prosecute with UK businesses including connected their appraisal of the interaction of immoderate further steps we take.

'Nobody wants a commercialized warfare and our volition remains to unafraid a deal. But thing is disconnected the array and the Government volition bash everything indispensable to support the UK's nationalist interest.'

Shadow commercialized caput Andrew Griffith described the tariff announcement arsenic 'disappointing news' and suggested that Brexit spared the UK from higher import taxes.

He called connected the Government to 'agree a just deal' with the US for the payment of businesses and consumers.

In a statement, Mr Griffith said: 'This is disappointing quality which volition interest moving families crossed the country.

'Labour failed to negociate with President Trump's squad for excessively galore months aft the election, failed to support our experienced apical commercialized negotiator, and failed to get a woody to debar the imposition of these tariffs by our closest trading partner.

'The Chancellor's exigency fund of conscionable a week agone with its inadequate headroom is present astatine risk, casting uncertainty astir much taxes oregon spending cuts. Sadly, it is British businesses and workers who volition wage the terms for Labour's failure.'

He added: 'The metallic lining is that Brexit, which Labour ministers voted against nary little than 48 times, means that we look acold little tariffs than the EU: a Brexit dividend that volition person protected thousands of British jobs and businesses.'

Chancellor Rachel Reeves acknowledged yesterday that the UK volition not beryllium 'out of the woods' adjacent if it tin get exemptions. 

Ms Reeves said the main interaction connected the system would beryllium from 'global tariffs' alternatively than UK-specific ones, acknowledgment to depressed request and higher ostentation successful different countries.

She said: 'I deliberation that's truly important to understand, due to the fact that adjacent if we are capable to unafraid an economical woody with the United States – which we precise overmuch privation to unafraid and are moving hard to unafraid that – adjacent if that's possible, (it) doesn't mean someway that we are retired of the woods and not impacted by tariffs.

'So we don't conscionable privation to spot an statement betwixt the UK and the US, we privation to spot escaped trade, just commercialized continue.' 

Ms Reeves insisting the Government would not beryllium 'posturing' successful hunt of a 'quick headline'.

The Chancellor - whose Spring Statement spending plans are already astatine hazard of being torched - said she had been talking to UK exporters who urged against a rushed response.

Ms Reeves told the Commons Treasury Committee: 'We don't privation to beryllium posturing here, the prize connected connection is simply a bully economical statement betwixt america and the United States'.

'We are not going to bash thing to enactment that successful jeopardy, we are not going to unreserved into enactment to get a speedy headline.'

At PMQs, Sir Keir said the Government has 'prepared for each eventualities' and is moving with companies apt to beryllium deed by the tariffs.

He told MPs: 'A commercialized warfare is successful nobody's interests and the state deserves – and we volition instrumentality – a calm, pragmatic approach.

'That's wherefore constructive talks are progressing to hold a wider economical prosperity woody with the US.

'That's wherefore we're moving with each industries and sectors apt to beryllium impacted.

'Our decisions volition ever beryllium guided by our nationalist interest, and that's wherefore we person prepared for each eventualities, and we volition regularisation thing out.'

The imposition of wider tariffs volition marque a scope disconnected British goods much costly successful the US, which is apt to trim demand.

The UK could besides becomes a destination for imports diverted from the US owed to the precocious cost, perchance flooding the marketplace and hitting home producers.

Economists astatine the Office for Budget Responsibility person warned that US tariffs could destruct Ms Reeves's 'headroom' against her day-to-day spending plans, requiring her to marque much cuts oregon hike taxes to conscionable the rules she has acceptable herself.

The tariffs could sound up to 1 per cent disconnected the size of the UK system if determination is simply a full-blown commercialized warfare with the UK retaliating to Mr Trump's measures.

Analysis from the Institute for Public Policy Research (IPPR) suggested tariffs connected car imports would enactment 25,000 UK jobs astatine hazard and 'completely destabilise the UK car manufacturing industry'.

UK negotiators are pursuing an economical statement with the US focused connected technology.

Such a woody could see imaginable changes to the integer services taxation – which imposes a 2 per cent levy connected the revenues of respective large US tech companies – successful speech for a carve-out from the tariffs.

Sir Keir did not contradict that changes to the integer services taxation are being considered.

Easing entree for US cultivation products to UK markets could besides beryllium connected the table, though officials person insisted that nutrient standards volition not beryllium lowered.

British businesses that are successful the firing line

Jaguar Land Rover

One successful 8 cars built successful the UK is exported to the US, worthy £6.4billion successful 2023, leaving the assemblage particularly exposed to Trump's tariffs.

Trump wants carmakers to determination accumulation to the US to swerve tariffs but probe from GlobalData shows that Jaguar and Land Rover proprietor JLR makes nary cars successful America, making it the astir astatine hazard of immoderate car marque from a transatlantic commercialized war.

Some 25,000 UK jobs beryllium astatine places similar JLR successful the West Midlands and the BMW's Mini mill successful Oxford, according to the Institute for argumentation Research think-tank.

Most of the UK-made vehicles that spell to the US are luxury cars, including Aston Martin and Volkswagen-owned Bentley.

Others are high-end vehicles specified arsenic McLaren supercars, selling conscionable implicit 2,100 annually, immoderate costing upwards of £250,000.

That makes them susceptible to tariffs, though they volition anticipation to walk the outgo to their affluent customers without denting their sales.

The US is simply a cardinal marketplace for Midlands-based car shaper JLR, which is owned by India's Tata Group and has factories successful Coventry, Solihull and Wolverhampton.

Just implicit 26,000 Mini marque vehicles were sold successful the US successful 2024, according to BMW's North American operations, though this was 21 per cent little than the 33,500 cars it sold determination successful 2023. All Minis are made astatine its Cowley mill adjacent Oxford.

The US is besides a cardinal marketplace for Aston Martin, which makes cars astatine Gaydon successful Warwickshire. The loss-making shaper generated astir a 3rd of its £1.6billion gross for 2024 successful the US, selling 6,030 cars – a driblet of 9 per cent connected the anterior year.

AstraZeneca and GSK

The UK's 2 largest cause makers, Cambridge-based AstraZeneca and London-headquartered GSK, are among the jewels successful the British system with a combined worth of £237billion.

Both companies trust heavy connected the US for sales, with AstraZeneca raking successful £18billion from American customers past year, astir 43 per cent of its full sales. GSK, meanwhile, received £16.4billion, much than fractional of its income for 2024.

The US is the main destination for pharma exports from the UK.

Around £8.8billion worthy of medicinal and pharmaceutical products were shipped to America successful 2023, according to information from the Office for National Statistics (ONS).

This is astir the aforesaid worth arsenic goods exported by the British car manufacture to the US.

Overall, the UK's pharma assemblage employs implicit 73,000 people, meaning a slump successful request from the US could jeopardise a cardinal British industry.

The manufacture besides relies connected a analyzable web of proviso chains that root ingredients for its drugs from each implicit the world, including the US, which could beryllium upended by tariffs.

US pharma giants with operations successful the UK could besides beryllium disrupted by caller tariffs, perchance putting much British jobs astatine risk.

Johnnie Walker whisky

Diageo, the proprietor of brands specified arsenic Johnnie Walker whisky, is bracing itself for a hard deed from Trump's tariffs measures, which are expected to see levies connected scotch.

Americans person agelong loved quintessentially British whisky brands, with the UK exporting astir £1billion worthy of scotch to the US each year.

There are fears among distillers that the assemblage volition spot a repetition of a erstwhile 25 per cent US tariff connected scotch that was imposed nether the erstwhile Trump medication successful 2019 which outgo the manufacture implicit £600million successful income earlier it was repealed successful 2021.

It is simply a peculiarly worrying clip for Diageo's 4,500 UK employees including unit astatine its 29 distilleries successful Scotland.

Overall, the UK's scotch manufacture employs 41,000 radical successful Scotland and 25,000 elsewhere successful Britain.

Diageo is besides astatine hazard from Trump's levies against Canada and Mexico. The drinks elephantine owns Canadian whiskey marque Crown Royal arsenic good arsenic Mexican tequila sellers including Don Julio and George Clooney's Casamigos.

In February, Diageo brag Debra Crew warned that tariffs connected Canada and Mexico could hitch £161million from the group's profits, a fig that could turn if akin levies are applied to the UK.

Rolls-Royce

Jet motor shaper Rolls-Royce forms a cardinal chunk of the UK's aerospace industry, 1 of the largest successful the world.

The institution relies heavy connected the US arsenic a root of request for its engines, exporting astir a 4th of its caller models to America past year.

As a result, determination are fears levies connected UK aerospace exports could harm the company's business, which presently employs astir 22,000 radical successful Britain.

Last period reports emerged that Rolls-Royce was drafting up exigency plans to displacement accumulation to its factories successful the US and grow operations successful North America to debar immoderate caller tariffs imposed by Trump.

Rolls-Royce raked successful astir £5.5billion from the US past year, astir a 3rd of its full income for 2024 and much than treble the £2.6billion of gross it made from the UK.

It is simply a cardinal supplier to the US Department of Defense arsenic good arsenic large aerospace manufacturers specified arsenic Lockheed Martin and Boeing.

The institution antecedently warned investors that 'rising protectionism' from Trump could pb to higher costs and 'realign' planetary proviso chains.

Alongside Rolls-Royce, caller tariffs endanger to woody a dense stroke to the UK's wider craft sector, which made £2billion from US exports successful 2023.

BAE Systems

UK defence elephantine BAE Systems makes a ample chunk of its wealth successful the US.

Sales to America were worthy £12.5billion past year, astir fractional of the £28billion the institution made successful 2024.

As a result, a broad levy connected goods entering the US is apt to measurement heavy connected the firm's nett margins.

One imaginable upside is renewed request for defence spending successful the UK and Europe, which has seen the worth of arms makers connected the continent surge arsenic countries look to beef up their equipped forces and trim reliance connected the US.

This has been helped by caller commitments from Prime Minister Keir Starmer and Chancellor Rachel Reeves to boost British defence spending to 2.6 per cent of nationalist income by 2027 from its existent level of 2.3 per cent with plans to assistance it to 3 per cent aft 2029.

ADS, the UK aerospace and defence commercialized association, antecedently warned that tariffs would enactment businesses astatine hazard arsenic caller levies volition thrust up the costs of assembly instrumentality and materials that are imported by the US.

British Steel

The UK's struggling alloy assemblage is already feeling the vigor from Trump aft the US president past period slapped a 25 per cent tariff connected alloy and aluminium imports from Britain.

The bosses of British Steel and Tata Steel, the 2 large players successful the industry, antecedently warned MPs that the levies were driving distant business.

There are besides concerns that inexpensive alloy could flood the UK marketplace from overseas arsenic overseas producers specified arsenic China look for caller customers extracurricular the US.

British Steel successful peculiar is facing an existential menace fuelled by the caller levies aft talks betwixt its Chinese proprietor Jingye and the Government implicit a backing bundle broke down past week.

The institution is present readying to adjacent 2 blast furnaces successful Scunthorpe, putting 2,700 jobs astatine risk. The shutdown would besides permission the UK arsenic the lone state successful the G7 radical of developed nations without the quality to nutrient its ain steel.

Earlier this week, section councillors successful North Lincolnshire called connected the authorities to nationalise British Steel to safeguard jobs astatine the Scunthorpe plant.

The determination has not been ruled out, but manufacture curate Sarah Jones has said the 'preferred approach' would beryllium to hash retired a woody with Jingye to support the works open.

Burberry

Burberry, the shaper of the iconic trench coat, is 1 of the UK luxury goods companies acceptable to beryllium deed by tariffs. 

The Americans bargain £13billion worthy of British luxury products of each benignant each year. 

But they person a peculiar passionateness for Burberry's chill Britannia style. In the past fiscal year, the company's North American income amounted to £603million, 20 per cent of full turnover.

Last Christmas a instrumentality to the classical Burberry plaid and different ranges caused a bounce successful request astatine Burberry's 50 stores successful the US which are successful upmarket retail districts successful New York and Los Angeles. 

The value of the US to the marque is reflected successful the assignment of an American – Joshua Schulman – to the station of main enforcement past summer.

Burberry, which makes immoderate of its coats successful Yorkshire, is not the lone British marque adjacent to the hearts of American luxury lovers. 

Others see Mulberry, 40 per cent of whose handbags are manufactured successful Somerset, and Watches of Switzerland which, contempt its name, is simply a British institution with stores successful the US. 

Other smaller businesses see Smythson, the stationery radical and tiny trade furnishings firms whose bespoke output adorns uptown Manhattan penthouses.

Walpole, the British luxury goods commercialized body, says that North America is 1 of the biggest planetary markets for our upmarket brands, representing 24 per cent of exports of specified items.