Summary

  1. Trump is a tariff true believerpublished at 22:33 British Summer Time

    Natalie Sherman
    New York business reporter

    Donald Trump sitting in the Oval Office with his hands foldedImage source, Reuters

    Trump is a believer in tariffs.

    In his first term, those impulses faced checks from his advisers, free-traders within the Republican Party and even the courts, where some companies brought challenges to his measures.

    But this time around, he is crafting policy largely without those obstacles.

    "He's much more powerful than he was the first time," former Commerce Secretary Wilbur Ross told me in an interview last week.

    Ross himself said he hoped to see Trump's tariffs focus on a few, key strategic items, such as computer chips. But he noted that Trump has backed tariffs for decades – including on the campaign trail last year.

    "It shouldn't surprise people too much what he's doing - but people are slow at accepting things that maybe they would rather not hear," Wilbur said.

  2. Tuesday's key tariff developmentspublished at 22:30 British Summer Time

    We’re now less than 24 hours away from the next slew of tariffs to be imposed by Donald Trump.

    Tomorrow's levies could hit "all countries", the US president has said. It’s also expected that he'll enact some previously delayed tariffs on Mexico and Canada.

    Otherwise, detail is scant. So, for now, here’s a look back at Tuesday’s headlines:

    • The White House press secretary has said 2 April will be one of the "most important days in modern American history"
    • She said Trump spent today in talks with his trade and tariffs team, "perfecting" the announcement - but remained tight-lipped what it might be
    • Around the world, leaders are preparing their responses. The European Union said it was ready to retaliate, while UK Foreign Secretary David Lammy said "all options remain on the table"
    • During a joint call, the leaders of Mexico and Canada discussed the US's "unjustified trade actions", and pledged to remain in "close contact", according to a statement
    • Meanwhile, Vietnam announced it would reduce its tariffs on US imports, while Israel said it would take action to remove them entirely
    • And over on Capitol Hill, a Democratic senator has entered a resolution to block President Trump from using emergency powers to impose tariffs on Canada, with a vote expected tomorrow

    We're ending our live coverage after some closing analysis from our New York business reporter, Natalie Sherman - coming up next.

    Otherwise, that's it from us. We'll be back early tomorrow to guide you through the day.

  3. US markets are now closedpublished at 22:04 British Summer Time

    The US stock market has closed after a day of uncertainty and anticipation of what new tariffs President Donald Trump might unveil tomorrow.

    The S&P 500 and Nasdaq indices both ended the day on a high, up 0.38% and 0.87% respectively, while the Dow Jones closed 0.028% down.

    The S&P 500 has fallen almost 10% since mid-February, making March the worst month for the index in years.

  4. Ireland expects hard hit from US tariffs, but some companies remain bullishpublished at 21:52 British Summer Time

    John Campbell
    BBC News NI economics and business editor

    Combilift forklifts in a hanger
    Image caption,

    Combilift makes forklifts which can operate in very tight spaces which allow companies to store more in their warehouses

    Ireland is expected to be one of the most affected countries when US President Trump announces a new round of tariffs this week.

    In 2024, Irish sales to the US were worth €73bn (£61b; $79bn), almost a third of the country's total goods exports.

    The Monaghan-based manufacturer Combilift makes about a quarter of its sales in the US market where it also employs 50 people.

    The company's co-founder and managing director Martin McVicar visited Chicago two weeks ago to brief his US customers, telling them he would freeze the dollar price of all Combilift products this year to give them some certainty about import costs.

    McVicar remains bullish about the US market as he sees their products as helping customers run their businesses more efficiently.

    "We're enabling customers to expand without having to relocate and we're adamant that should outweigh the impact of a tariff," he says.

  5. Remind me - what are tariffs and how do they work?published at 21:34 British Summer Time

    Tariffs are taxes charged on goods imported from other countries.

    Those announced in the US so far target products including cars, aluminium and steel, and goods from Canada, Mexico and China.

    Typically, tariffs are a percentage of a product's value. For example, a 25% tariff on a $10 (£7.76) product would mean an additional $2.50 charge.

    Companies that bring the foreign goods into the country have to pay the tax to the government.

    This often means higher prices for consumers as firms may choose to pass on some or all of the cost to customers.

    Tariffs explainer using the price of a pair of shoes as an example
  6. Canada and Mexico leaders discuss 'unjustified' US tariffspublished at 21:22 British Summer Time

    Canadian Prime Minister Mark Carney and Mexican President Claudia Sheinbaum had a "productive call" today, according to a statement from the former's office.

    The leaders emphasised the "importance of safeguarding North American competitiveness while respecting the sovereignty of each nation", it adds.

    The prime minister's office says the two discussed plans to fight the White House's "unjustified trade actions", including through increased trade between Canada and Mexico.

    The two countries have "agreed to remain in close contact", the statement says.

  7. Tariffs will 'hurt average Americans' - Cory Bookerpublished at 21:12 British Summer Time

    A close-up of Democratic Senator Cory Booker inside the US Capitol building,Image source, Getty Images

    Democratic Senator Cory Booker is denouncing Trump's tariffs from the floor of the US Senate, where - for more than the last 20 hours now - he's been giving a marathon filibuster.

    In his lengthy speech, he's been railing against the Trump administration, particularly its economic policy.

    Just after 10:00 EST (15:00 BST), fellow Democrat Chuck Schumer asked Booker about the "on-again, off-again, this-country, that-country" tariffs and their "discombobulating" effect on the economy.

    Booker says tariffs will only raise prices – a lesson learned from the Great Depression – and "hurt average Americans" trying to make ends meet.

    "The evidence is here. Learn from our history," he says. "Inflation is up, prices are up, consumer confidence is down, the stock market and people's [retirement plans] are down," he added.

  8. British carmaker concerned about how tariffs could affect growthpublished at 21:02 British Summer Time

    David Waddell
    Business reporter

    I have been speaking to the Morgan Motor Company, a British builder of handmade cars with an important export market in the US.

    They are planning for 27.5% tariffs - that's 25% in addition to the current 2.5% US import duty.

    They are not concerned about customers switching brands. "Customers who want a Morgan want a Morgan."

    And the brand is quintessentially British, so - especially for US buyers - it has to be built in Britain. There is therefore no consideration of establishing a US plant.

    I am told that 15 cars are on the water right now. They'll reach the US after the new tariffs kick in. The company will absorb the cost of the additional tariffs for these customers.

    The company expects to sell about 680 cars this year. Around 30% (around 200 units) will be sold into the United States. Pre-orders are currently up for next year, but they are concerned about how tariffs might affect further growth.

  9. Watch: Republicans defend Trump tariffs as Democrats attack approachpublished at 20:49 British Summer Time

    Republicans are defending the US president's tariffs against Canada amid a backlash from Democrats who are tabling a Senate resolution to bloc them.

    Republican Senate Majority Leader John Thune said earlier today that while everyone was "anxious" to see what Trump announces tomorrow, it should not change the way senators vote.

    "The president declared the emergency to deal with the issue of fentanyl and the flow of fentanyl into this country, not only from our southern border but also from our northern border," Thune said, adding that the president needed to have "tools at his disposal" to deal with these "national emergencies".

    We've wrapped up more of the key Republican and Democrat reaction below:

  10. Ford's US sales slide in first quarterpublished at 20:35 British Summer Time

    Auto giant Ford reported a 1.3% drop in first-quarter sales in the US today, as investors await the outcome of Donald Trump's tariffs.

    In a statement, it says sales fell to 501,291 units in the three months to March, from 508,083 units a year earlier, due mainly to the discontinuation of certain vehicle models and rental fleet sales timing.

    The company, however, maintains it saw "strong retail sales in March".

    Some analysts have warned that Trump's25% tariffs on foreign-made vehicles could lead to the temporary shutdown of some US car production, with increased prices passed onto consumers.

    Yesterday, Trump said he "couldn't care less" if carmakers raise prices after import charges comes into effect.

  11. 'That's scary' - car buyers fret over risk of price increasespublished at 20:22 British Summer Time

    Brandon Drenon
    Reporting from Washington DC

    Two women pictured in the parking lot of a used car dealership in Virginia
    Image caption,

    Robin Marshall (left) loaned her car to Jeannie Dillard, her "hop-along bestie", so she could shop for a new one

    Jeannie Dillard rolled into the parking lot of a used car dealership in Virginia last week, looking for a replacement for her previous car that was stolen and irreparably wrecked.

    She's been searching for months, unable to find one that fits her budget. She lives on a fixed income.

    With Trump's car tariff deadline around the corner - expected to raise the cost of cars in the US - her search grows more desperate.

    "That's scary," she says, referring to the prospect of increasing prices. "Prices are already high."

    "I should buy (a car) more quickly, but I have to have enough money," she continues.

    "I'm obviously not going to buy something that I can't afford."

    The impact of the sweeping auto tariffs is very unknown, experts say, as the new trade policy runs counter to decades of practice.

    Car dealers and consumers are bracing for the worst, they tell the BBC.

    "Everything's topsy turvy now, you know, and it's also terribly filled with uncertainty," John Heitmann, a University of Dayton professor and automobile historian, says.

  12. Markets showing some signs of recoverypublished at 20:07 British Summer Time

    Wall Street has made marginal gains this afternoon, amid another volatile day of trading on the eve of Donald Trump's expected tariff policy rollout.

    Stocks on the S&P 500 added 0.3% and the Nasdaq Composite rallied 0.5% on midday Tuesday. The Dow Jones Industrial Average slumped 0.2%.

    In stock markets abroad, indexes rose across much of Europe and Asia, recovering some of their steep losses on Monday.

    In Europe, Germany’s DAX returned 1.7%, and France’s CAC 40 rose 1.1%. Japan's Nikkei 225 mostly held steady.

    Wall Street's early Tuesday gains were a welcomed recovery after both the S&P 500 and Nasdaq Composite saw some of their worst performances since 2022.

  13. Analysis

    What would the impact of a 20% universal tariff be on the UK?published at 19:51 British Summer Time

    Faisal Islam
    Economics editor

    A 20% universal tariff for all imports into the US would be a major shock to the world economy.

    The idea was promoted by Donald Trump as a candidate, but faded away in recent weeks. It has been resurrected since the weekend, and has featured in advisers’ plans, and is really the only way to get to some of the “trillions of dollars” of revenue mentioned in DC.

    The UK would be hit by a material amount, as the single largest country trading partner. But the big losses would come if there is an equivalent global retaliation, with the UK economy shrinking by 1%, enough to wipe out growth and lead to pressure for tax rises or spending cuts.

    The total cost around the world, could, according to an Aston University Business School be $1.4 trillion, as trade is diverted, and prices rise.

    This is hugely dependent however on what else happens around the world. For example some in Cabinet feel the hit to US business could be offset by cheaper manufacturing arriving to the UK and lowering prices. Should the EU retaliate in full and the UK not, there is also the possibility of UK trade with the US actually increasing.

    Trade wars are hard to win, and easy for everyone to lose. A universal tariff of 20% would be an historic hit to the global trading system.

  14. Trump will announce tariffs tomorrow at 16:00 ET (21:00 BST)published at 19:46 British Summer Time

    US President Donald Trump holding an executive order about tariffs increase in the Oval Office back in February, flanked by Commerce Secretary Howard LutnickImage source, Reuters
    Image caption,

    Trump holding an executive order about tariff increases in the Oval Office back in February, flanked by Commerce Secretary Howard Lutnick

    We now know when Donald Trump will announce his highly-anticipated tariffs.

    The US president will deliver his remarks tomorrow at 16:00 ET (21:00 BST) in the White House Rose Garden.

    An invite from the White House calls it a "Make America Wealthy Again Event".

  15. Watch: US consumers say tariffs will 'hurt a lot of pocketbooks'published at 19:40 British Summer Time

    The BBC hit the streets of New York City to hear from consumers on the eve of Trump's tariff policy rollout, which he's self-titled "Liberation Day".

    Shoppers say they are worried, telling the BBC: "I think it's going to hurt a lot of people in this country."

  16. Trump tariffs loom: Here's what you need to knowpublished at 19:28 British Summer Time

    A car hauler truck gasses up at a duty-free station before crossing the Ambassador into the United States at Detroit on April 1, 2025 in Windsor, CanadaImage source, Getty Images
    Image caption,

    Trump will begin implementing new tariffs on goods entering the US from tomorrow

    "Liberation Day" is how President Trump is dubbing 2 April - the day he's planning to impose further charges on goods imported to the US.

    Trump is locked in talks with his trade and tariffs team, "perfecting" the fine details of the message he will deliver tomorrow, his press secretary, Karoline Leavitt, told reporters earlier on.

    No one knows for sure what these details are. But what's certain is the tariffs will be extensive (indeed, Trump himself has suggested they will hit all countries).

    With that in mind, here's a quick digest of today's developments:

    We'll continue to update you on all the latest - stay tuned.

  17. The New York business stockpiling imported cheese and winepublished at 18:56 British Summer Time

    Natalie Sherman
    New York business reporter

    Luigi Di Palo stands in front of a red brick wall with wine bottles stacked around him

    Behind the counter at Di Palo’s Fine Foods in New York City last week, proprietor Luigi Di Palo shook his head, brushing off a request from a customer hoping to lock in a price for six months' worth of parmesan wheels from Italy.

    "I can't give you any long-term deal!" he said, reminding his customer of tariffs that could be about to raise the cost of nearly everything in the store.

    "I know it's going to be painful for us, very painful,” said Di Palo, whose family has sold Italian food in New York City for more than 100 years.

    As soon as Trump was elected, Di Palo started to stock up on supplies, remembering the fallout from trade fights in Trump's first term, which led to tariffs on billions of dollars of imports, including European wine and cheese.

    He is now leasing about 20% more storage space to house the extra wine and hard cheese he has brought in. But a business that prides itself on having the finest and freshest ingredients can only stockpile so much, Di Palo said.

    The business weathered Trump's first term by raising prices, and Di Palo said he had confidence in Trump as a businessman and negotiator.

    But he admitted: "The uncertainty weighs heavily on our minds."

  18. Trump hits out at Senate vote on Canada tariffspublished at 18:31 British Summer Time

    As we mentioned earlier, Senator Tim Kaine is trying to block President Trump from using emergency powers to impose tariffs on Canada.

    Posting on his Truth Social platform, Trump accuses Kaine of "trying to halt our critical tariffs on deadly fentanyl coming in from Canada".

    He says Senate Republicans "MUST vote to keep the national emergency in place" to "end the scourge" of the synthetic opioid.

    Trump says a Democrat victory would be "devastating for the Republican Party and, far more importantly, for the United States".

  19. Democrat Senator says vote to block Canada tariffs likely to happen tomorrowpublished at 18:16 British Summer Time

    Senator Tim Kaine holds up an index finger as he speaksImage source, Getty Images

    Democratic Senator Tim Kaine, who has tabled a resolution in the Senate to stop Trump's tariffs on Canada, recently spoke to reporters outside the US Capitol.

    The vote will most likely take place on Wednesday, having originally been expected to take place today, he said.

    He claims that Trump's use of emergency powers to impose the import charges are based on "fake Canadian emergencies", and calls Canada a "friend, not an adversary".

    "We need to stand strong for a strong relationship with a good ally," Kaine said.

    Kaine said he's proud that his resolution has six Republican co-sponsors, but adds that the outcome will be difficult to predict and likely close. If it were to pass the Senate, it would still need to pass in the House. And both chambers are controlled by Republicans.

  20. Countries have called to 'discuss' tariffs with Trumppublished at 18:04 British Summer Time

    Bernd Debusmann Jr
    Reporting from the White House

    We've just wrapped up a relatively short White House briefing with Press Secretary Karoline Leavitt, who was in a rush to get to an event with First Lady Melania Trump.

    Just before the briefing concluded, Leavitt said that "quite a few countries" have called President Trump to discuss the tariffs, although she did not specify how many.

    "But, again, there's one country that President Trump cares most about, and it's the United States of America," she adds.

    Earlier, Leavitt said that the president is "always up" for a phone call or "good negotiation", potentially leaving the door open for countries to arrive at last-minute deals with the administration.