Image source, Getty Images

It's just passed 08:00 in Washington and we're hearing from US President Donald Trump for the first time today.

In a post on his Truth Social account, Trump writes: "IT’S LIBERATION DAY IN AMERICA!"

As a reminder, the US president branded today - 2 April - as "Liberation Day", claiming the announcement of tariffs will free the US from depending on foreign goods.

We are yet to know the full details of Trump's announcement - due to take place at the White House at 16:00 EST (21:00 BST) - but it is expected to have ripple effects around the world.

Simon Jack
Business editor

Image source, PA Media

The bosses of some of the world's biggest pharmaceutical companies are meeting with senior government ministers in London today and tomorrow.

Originally planned to discuss drug pricing and regulation, the prospect of tariffs on drugs exported to the US overshadows the meeting between heads of companies including GSK, AstraZeneca and US giant Eli Lilly.

The US makes up 40% of Astra sales and 50% of GSK's. Although both have significant manufacturing facilities in the US, raw ingredients for life saving medicines and vaccines flow between the UK, EU and US.

Sources close to the companies involved said they are waiting for more detail to emerge on what exactly will be subject to tariffs - whether its finished products or ingredients as well - noting that car parts were included in automotive tariffs.

There is also the issue of how tariffs work when they collide with pricing caps that both the NHS and many health organisations set for their bulk drug buying.

UK more downbeat about prospect of US trade dealpublished at 12:38 British Summer Time 2 April

12:38 BST 2 April

Henry Zeffman
Chief political correspondent

The UK government has become noticeably more downbeat about the prospect of striking a deal to avoid tariffs before they take effect.

The diplomacy is still frantically ongoing though, with genuine optimism that a deal to reduce the tariffs for the UK will be signed after the initial big bang global announcement.

As part of those efforts I’m told that this week Lord Mandelson, the UK ambassador, has had meetings in the White House with JD Vance, the vice-president, and Susie Wiles, the president’s chief of staff.

• Keir Starmer is speaking at Prime Minister's Questions - you can follow our live coverage here

Image source, PA Media

We have some more from Keir Starmer now, who says the UK is ruling nothing out when it comes to Trump's tariff announcement.

Speaking at PMQs a moment ago, the prime minister says: "We've been preparing for all eventualities ahead of the confirmation of US tariffs later today."

He adds that a "trade war is in nobody's interest", reasserting that the UK will take "a calm, pragmatic" approach and will "rule nothing out".

Starmer adds, "constructive talks" on a US-UK trade agreement are "progressing".

• As a reminder, it is hoped a future trade agreement with the US will enable the UK to be exempt from Trump's sweeping tariffs

No reliable answers on how tariffs will impact UK economypublished at 12:16 British Summer Time 2 April

12:16 BST 2 April

Dharshini David
Deputy economics editor

Image source, EPA-EFE/REX/Shutterstock

The UK government’s official forecasters, the Office for Budget Responsibility (OBR), outlined three (out of many) scenarios last week in response to Trump's expected tariff announcement.

Under those, it reckons that a 20% tariff applied to all US imports could reduce growth by 0.6 percentage points in the UK next year and 0.3 percentage points thereafter – painful, unwelcome but not disastrous.

If other governments impose more tariffs on their own, the reduction to growth next year could be equivalent to 1% of GDP, and 0.75 % further out.

That could wipe out any spare cash the chancellor has after meeting her rules on the public finances – a situation that could prompt more tax rises or spending cuts.

But these are just illustrations – backed by what it acknowledges are very uncertain assumptions. And it says it’s unclear what tariffs would mean for prices.

There are many questions about the economic impact – but no one can claim to have reliable answers.

UK Prime Minister Keir Starmer, speaking at Prime Minister's Questions, says the UK "rules nothing out" when it comes to Donald Trump's upcoming tariffs announcement.

He says a trade war benefits nobody, and the the UK is "prepared for all eventualities".

• You can follow our live coverage of PMQs for all the key lines

Image source, EPA

When Keir Starmer flew to Washington in February, tariffs and trade deals were high on the agenda.

Trump seemed receptive to the idea, telling a post-meeting press conference there was a “very good chance” that the US and UK could end up with a “real trade deal” where tariffs “wouldn’t be necessary”.

But Downing Street has since indicated that it expects the UK to be hit by Trump's expected announcement on tariffs, at least initially.

Speaking in the House of Commons yesterday, Foreign Secretary David Lammy said London and Washington were still having “intense conversations” over a deal, but the UK was preparing “for the worst”.

Yesterday, Starmer said the UK will take a "calm approach" rather than a "knee-jerk reaction" to Trump's plan.

We’re hearing from Starmer now as he faces Tory leader Kemi Badenoch in Prime Minister's Questions. Follow our live coverage for all the key lines.

Image source, EPA-EFE/REX/Shutterstock

• The UK is prepared “for the worst” but will have a calm approach after a much hoped-for trade deal with America did not materialise before Trump’s “Liberation Day”
• The EU has threatened a "robust and calibrated" response to new tariffs, first taking aim on US goods before expanding to US services
• China, Japan and South Korea agreed to strengthen regional free trade at their first economic dialogue in five years on Sunday
• India has already reduced tariffs on some goods, while negotiations for a trade deal with the US are ongoing
• Canada’s new Prime Minister Mark Carney said his country will have an “intelligent” response that will “not disadvantage Canadian producers”
• Carney had a “productive call” with Mexico’s President Claudia Sheinbaum yesterday, in which the leaders agreed to increase trade between the two countries
• Meanwhile, Israel has said it will remove all tariffs on US imports

Image source, Getty Images

The head of the United Auto Workers, a union representing workers in the car, aerospace and metal industries, says tariffs on cars that came into place today are a victory for autoworkers.

As a reminder, Trump implemented a 25% tariff on all cars coming into the US from 2 April.

President Shawn Fain says they applaud the Trump administration for the move, which he claims will "end the free trade disaster that has devastated working class communities for decades".

A statement online says the tariffs are a policy that "prioritise the workers who build this country - rather than the greed of ruthless corporations".

He explains that work has fallen in the US, as automotive companies source cars and workers outside the US. With tariffs, "thousands of good-paying blue collar auto jobs could be brought back to working-class communities across the United States".

• We've had plenty of reaction to Trump's expected announcement, from a family worried about job security to the yoghurt and jam-makers backing the president's trade fight. Stick with us for more

Natalie Sherman
New York business reporter

Image source, Amber Walliser

A few days after Donald Trump won the US presidential election, Amber Walliser stocked up, spending $2,000 (£1,538) on appliances she believed would get more expensive as the White House started to put new taxes on imports.

But that was a temporary splurge. These days, her family is buckling down, worried about job security, and a possible economic downturn, which experts believe could be more likely because of US President Donald Trump's tariffs.

It means no new car, or big vacation this year. They have even shelved plans to start trying for a second child.

"We are saving as much as possible, just hoarding cash, trying to bulk up our emergency fund," the 32-year-old accountant from Ohio said.

Amber's worries are being echoed across the US, as tariffs and other changes by the White House hit the stock market, spark turmoil for businesses, and add to inflation concerns.

White House officials have acknowledged the likelihood of "a little disturbance", while promising that the short-term pain will lead to long-term gain.

Katya Adler
BBC Europe editor

Image source, Reuters

Donald Trump declared back in February that the EU was formed to screw the US. He's not a fan, often fuming at the bloc's massive trade surplus with the United States.

Brussels is now bracing itself for a costly trade war and European firms are likely to be hit hard.

Germany's car makers and France's wine and champagne industries rely on the US for up to 20% of their income and UK companies invested in EU businesses could also feel the impact.

Brussels hopes to get the Trump administration to back down by threatening what it calls a "robust and calibrated" response to new tariffs.

They'll initially take aim at US goods, but EU officials are also preparing retaliatory measures on US services. That could include big tech companies, banks, and financial service providers in the EU.

• As a reminder, Donald Trump is expected to outline his plans for further tariffs in a statement at the White House at 16:00 EST (21:00 BST)

Does the US face unfair trade from other countries?published at 10:24 British Summer Time 2 April

10:24 BST 2 April

Image source, Reuters

By Ben Chu, BBC Verify policy and analysis correspondent

What’s driving President Trump’s reciprocal tariffs is the belief that the US is the victim of “unfair” trade because some countries put higher tariffs - or taxes - on goods they import from the US - than the other way round.

The US had an average tariff - on goods coming into America - of 3.3% in 2023. That was below the European Union's average tariff of 5% and China's average tariff of 7.5%. And it was considerably lower than the average tariff of India (17%) and South Korea (13.4%).

So, it is legitimate for Trump to point out that some countries have a higher average tariff on imports than America's.

He has said he wants to match these tariff rates but, under the rules of global trade, the US would have to set the same rate - on a particular good - for all countries.

So it wouldn’t, for example, be able to set a 20% rate on cars from the EU and a 50% rate on cars from China .

• Is Trump right when he says the US faces unfair trade?

Natalie Sherman
New York business reporter

Trump’s trade fight is tapping into longstanding frustrations many US firms feel about foreign competition and policies they face abroad.

Those complaints were on display in letters submitted to the White House in recent weeks, seeking to influence its policy.

Beef exporters, for example, said they’ve been trying to sell in Australia for years, with no success due to sanitary rules they feel unfairly block their products.

JM Smucker, which makes jams and other products, spotlighted a 24% tariff the European Union places on jams. Yoghurt-maker Chobani said it wanted changes to Canadian protections for the dairy industry, which include tariffs of 250% after imports hit a certain threshold.

But is Trump aiming to resolve those grievances or will he be satisfied by simply raising tariffs?

• Read more: The US firms backing Trump's fight over trade

Paul Moss
Europe regional editor

Image source, EPA-EFE/REX/Shutterstock

Emanuele Orsini, head of Italy's main industry organisation, warns of a "massive risk" to the country's economy from tariffs expected to be imposed by the US.

He says the levies would hit Italy's pharmaceutical sector, food exports and the country's all-important fashion industry.

He calls for a cut in interest rates to offset these effects, but in the longer term, he says trade within Europe needs to increase, and with countries like India and Mexico.

Political leaders in Europe and elsewhere are still deciding how to respond to Donald Trump's expected measures - whether to retaliate with tariffs of their own, or continue attempts to reach some kind of deal.

Michelle Fleury
BBC World News Correspondent

Michael DiMarino runs Linda Tool, a 17-person Brooklyn company that makes parts for the aerospace industry. Everything he makes involves some kind of steel, much of which comes from American mills.

Even so, since Trump's earlier tariff announcements, he has seen his costs rise.

Although he supports the call for increased manufacturing in the US, Michael warns that the president’s moves risk backfiring, and end up hurting the industry.

“It’s a hard equation. If I have higher prices, I pass them onto my customers," he says.

"They have higher prices, they pass it onto the consumer. Does the consumer have the money to pay those higher prices, or do they reduce their demand?”

Jonathan Josephs
BBC business reporter

Image source, EPA-EFE/REX/Shutterstock

An influential lobby group that represents many of America’s biggest retailers has called on President Trump to “forgo policies that create uncertainty for American businesses and families”.

Target, Home Depot and CVS pharmacies are among the household names that are members of the Retail Industry Leaders Association and in a statement it says Americans are relying on Trump to "help make life more affordable”.

The statement reads, after years of rising prices “they are nervous about the impact tariffs will have on their pocketbooks”.

It’s worth remembering that reducing inflation was a key plank of President Trump’s campaign platform.

However retailers are clearly concerned that tariffs will mean the opposite – higher prices for anything they sell that’s made abroad. If that happens it could mean less sales and less profits as consumers think twice about what they spend on.

UK faces being caught in global trade warpublished at 09:15 British Summer Time 2 April

09:15 BST 2 April

Faisal Islam
Economics editor

Image source, Reuters

The UK faces, not just tariffs as high as 20% on exports to the US, but also being caught in the middle of a global trade war.

The government will face questions about its strategy of keeping close to the Trump White House, especially if other G7 members choose much stronger retaliation.

The Office for Budget Responsibility says GDP could drop by 0.6% as a result. In the UK car industry alone, 25,000 jobs could be under threat according to one think tank.

What is now known is that an outline agreement on an economic deal with the US was reached with the idea of exempting the UK from today’s tariffs.

What is not clear is what precisely was offered up to President Trump. It is known that US negotiators did take aim at the Digital Services Tax on big tech companies and at the Online Safety Act.

Government sources last night denied that they had given way on either.

Image source, Getty Images

Donald Trump is expected to announce sweeping tariffs in a statement at the White House Rose Garden at around 16:00 EST (21:00 BST) today.

In the meantime, the world will be waiting and watching anxiously for movement in Washington, with Trump's team so far remaining tight-lipped about the details of the levies.

Earlier, we reported on what we know and don't know - including which countries might be affected - ahead Trump's announcement. Stick with us as we follow the latest developments and reaction.

Trump poised to reshape global economypublished at 08:43 British Summer Time 2 April

08:43 BST 2 April

Faisal Islam
Economics editor

Image source, Reuters

Every time Donald Trump has mentioned his plan to levy massive tariffs on imports into the US, there has been a widespread assumption that they will be delayed, watered down or rowed back.

Today, he will reveal not just how serious he is about "the most beautiful word in the dictionary", but effectively call time on decades of economic globalisation.

And it is still possible that he will do this by launching the equivalent of a salvo of ballistic missiles into the global trading system, with a universal tariff on all imports into the USA.

The option of a 20% universal tariff is the only way to get to some of the massive revenues of trillions of dollars claimed by some of his advisers.

In recent days, President Trump has been adamant that the tariffs will be "reciprocal" and the US will be "nicer" to its trade partners. That doesn't rule out wide-scale imposition of tariffs at 10 or 20%, if, for example, the US deems that Value Added Taxes (VAT) are tariffs.

• You can read more of Faisal Islam's analysis here.

Donald Trump's former adviser Bryan Lanza says "it's America first" when it comes to tariffs and the White House will commit to implementing them.

Speaking on Radio 4's Today programme, Lanza says Trump will introduce "reciprocal tariffs" and claims it is "Americans that have been kicked around with respect to trade for the last 40 years".

He adds: "Why is it that the world is comfortable with America getting kicked in the teeth with respect to trade but the minute they stand up for themselves they're being selfish?"

When asked if the decision could be reversed, Lanza says Trump is a "business guy and not a politician" but he is certain tariffs will stay.

"This is happening, the world is no longer going to be taking advantage of the Americans," he says.

But when it's put to him that the US won't be liked or trusted, Lanza says it doesn't matter, they "still have to deal with this".