President Donald Trump’s dramatic announcement of sweeping global tariffs on what he dubbed “Liberation Day” has triggered a wave of concern across world capitals, with the UK bracing for serious economic fallout.
The US leader declared a 10% baseline tariff on all imports and targeted duties as high as 25% on strategic sectors such as automotive manufacturing, steel, and aluminium. The UK now finds its export-heavy economy in the crosshairs — particularly the already pressured car industry.
“My fellow Americans, this is Liberation Day,” Trump proclaimed from the White House Rose Garden.
“For decades, our country has been looted, pillaged, raped and plundered by nations near and far… But it is not going to happen anymore. Reciprocal — that means they do it to us, and we do it to them. Very simple. Can’t get any simpler than that.”
The tariffs have sparked alarm in the UK, where thousands of jobs in the automotive and manufacturing sectors could now be at risk. British vehicle exports to the US, a major market, will face 25% tariffs effective immediately.
UK Government reacts: ‘nobody wins in a trade war’
Prime Minister Keir Starmer issued a measured but firm response: “Nobody wins in a trade war. That is not in our national interest,” he said in an emergency press briefing. “We have a fair and balanced trade relationship with the US. Negotiations on an economic prosperity deal, one that strengthens our existing trading relationship — they continue.
“Nonetheless… I will only strike a deal if it is in the national interest.”
Business Secretary Jonathan Reynolds added that the UK is consulting with key industries and preparing a package of potential retaliatory tariffs, though he emphasised that diplomacy remains the preferred route.
Economic uncertainty looms
Financial markets responded with volatility. Ben Seager-Scott, Chief Investment Officer at Forvis Mazars, said: “‘Trump’s tariffs’ are more extreme than global markets expected… The lag in the tariffs kicking in, plus stockpiling efforts before Liberation Day, means that we won’t see the direct impact immediately.
“All eyes turn to the trading partners. No reciprocal tariffs have been announced just yet, but when they come, they will target US exports that can be easily substituted.
“Right now, markets suggest the US is doing more harm to itself than others.”
The pound dipped slightly against the dollar, and UK auto shares saw declines of 4–6% within hours of the announcement.
Global fallout: allies and rivals push back
Reactions from around the world were swift and critical:
European Commission President Ursula von der Leyen called the move “a major blow to the world economy,” warning of an escalation in protectionism.
“We are already finalising a first package of countermeasures in response to tariffs on steel. And we are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” she said.
China’s Ministry of Commerce said China “firmly opposes this” and vowed to take countermeasures: “There are no winners in trade wars… China urges the US to immediately lift unilateral tariffs.”
Canadian Prime Minister Mark Carney, referencing ongoing disputes with Washington, remarked: “We are going to fight these tariffs with countermeasures. We are going to protect our workers and build the strongest economy in the G7.”
