Jitters, uncertainty and hope as UK awaits Trump tariff decisionpublished at 08:11 British Summer Time 2 April

08:11 BST 2 April

Chris Mason
Political editor

Image source, Reuters

I detect a reasonable sprinkle of the jitters in government as the world waits for US President Donald Trump's tariffs announcement later.

It is the single most globally consequential day so far of the president's second term.

Foreign Secretary David Lammy said the UK must "prepare for the worst". But, there is also a hope that what we hear later can amount to a "ceiling", as it was put to me, from which the US can be negotiated down.

Talks are ongoing, at quite an intensity by all accounts, between London and Washington on a narrow trade deal, talked up enthusiastically by Donald Trump when the prime minister met him at the White House in February.

Those on the UK side feel they are making progress and that any agreement could not only ease the impact of tariffs but improve trading relations in particular sectors, such as technology. Let's see.

• Read more in Chris Mason's analysis

Image source, Reuters

It's not yet clear what additional tariffs, if any, will be levied on the UK by the US after Donald Trump's announcement later today - but Starmer says the UK will take a "calm" rather than "knee-jerk" response.

The UK government had been hoping to secure an exemption, with talks ongoing to strike a limited trade deal. But, it appears Starmer has accepted the UK will be impacted, at least initially.

All options remain on the table, Starmer says, and talks on a deal that could eventually see any new tariffs overturned are at an "advanced stage".

Chancellor Rachel Reeves says global tariffs would "have an impact on the UK as an open trading economy" while Foreign Secretary David Lammy says talks continue but the UK must “prepare for the worst".

The Independent Office for Budget Responsibility (OBR) has warned tariffs could wipe billions off economic growth and all but eliminate Reeves's buffer against her self-imposed rules on spending and borrowing.

Mitchell Labiak
Business reporter

Image source, EPA-EFE/REX/Shutterstock

The consensus from many economists is that tariffs mean higher prices for consumers.

Why? Because, while tariffs are paid by the company importing the goods, those companies tend to pass those costs on to customers by increasing prices.

For a product like a car, tariffs are not just paid once but several times as the body of the car crosses multiple borders during the building process and other parts are imported to the US.

When you add all those extra charges up, it’s easy to see why car firms – and consumers – are worried.

Of course, for Trump, all of this is sort of the point. He wants to encourage US companies to build things in the US with American workers to avoid the tariffs.

But car firms argue it’s not that simple as opening new factories, and hiring new workers is not something they can do overnight.

• Read more: Six things that could get more expensive for Americans under Trump tariffs

Tom Espiner
Business reporter

Image source, Reuters

Trading customers are “paralysed” as they wait for Trump’s tariffs announcement later, global supply chain management firm Flexport tells Radio 4's Today programme.

Flexport’s President Sanne Manders says: "People don’t know what to do. Until we have the announcement later today… everyone is paralysed.”

Customers are unsure which countries to invest in, he says. For example, it is unclear how Vietnam will be affected if it is classed as being in the so-called ‘Dirty 15’ - the 15% of countries that account for the bulk of trade with the US.

“There are a lot of questions that are open,” he says.

Manders says firms have already been stockpiling goods in the US ahead of the tariffs, including cars. In the longer term, he adds, it might make more sense for companies to just pass on tariffs on cars for four years, rather than build new US car factories, as Trump would like to see.

Annabelle Liang
BBC News, Business reporter

Stock markets across Asia were subdued on Wednesday ahead of tariff announcements by US President Donald Trump.

Japan's Nikkei 225 index added 0.3% while China's CSI 300 was 0.1% lower.

"Markets are in full on wait-and-react mode," said Stephen Innes from the SPI Asset Management advisory firm.

"New trade barriers are coming into view, but the lack of clarity has sucked a lot of oxygen out of the system," he added.

Trump is set to announce sweeping reciprocal tariffs, but it is unclear which countries will be the hardest hit.

The Office of the US Trade Representative, as it prepared to craft recommendations last month, identified countries in which it was "particularly interested".

Several Asian countries made the list including China, India, Japan, South Korea and Vietnam.

Sarah Smith
North America editor

Image source, EPA-EFE/REX/Shutterstock

Donald Trump calls this ‘Liberation Day” for America, insisting that his soon-to-be-unveiled tariff plan will free the US from decades of unfair practices that have been ripping off his country and destroying the American heartland.

President Trump has recently stated that tariffs should be reciprocal – based on whatever different nations charge on imports from the US. But we still do not know which countries will be affected and what level of tariffs will be charged on goods imported into the US.

Once they are announced, those levies will take effect immediately according to the White House official spokeswoman. Giving no time for countries or companies to adjust to what could be a huge upheaval.

Trump has shrugged off warnings of rising prices for US consumers and is ignoring falling stock markets as he pursues his plan. Believing that his plan will generate billions of dollars as well as returning jobs and manufacturing to the US.

• Plans for sweeping tariffs are set to be unveiled by the president later on Wednesday, on what has been dubbed by the White House as "Liberation Day"
• Earlier in March, Trump said the tariffs will be reciprocal, so will charge countries what they charge the United States
• At a later date, however, he told reporters the numbers could be lower than what other countries charge
• It isn't clear who the tariffs will affect, or if they will be the same for everyone
• But, we know a new import tax of 25% on cars entering the US has come into effect today, and car parts will face the same tax at some point in the next few months
• Some tariffs have already been implemented - in March a flat duty on all steel and aluminium entering the United States was raised to 25%. Trump has also already raised tariffs on all goods imported from China to 20%
• Canada has hit back at the tariffs, imposing a 25% levy on US steel and aluminium, as has China with a 10-15% tax on some US agricultural goods
• The EU has warned it is ready to retaliate, while the UK has said it's prepared for the worst

Ben Hatton
Live reporter

Image source, Reuters

US President Donald Trump is expected to unveil a sweeping range of tariffs on Wednesday, on what the White House has dubbed "Liberation Day".

We don’t yet know the specifics - which countries will be affected, or how large the tariffs will be. But many economists have warned tariffs may not have the effect Trump claims, and stock markets have been jittery in recent weeks.

For Trump, tariffs are a key tool in his “America first” trade vision, which he insists will boost US manufacturing and economic growth.

We're expecting the president himself to provide the details in a speech at the White House Rose Garden at 16:00 ET (21:00 BST).

As the US plays such a big role in the global market system, much of the world will be watching closely.

We'll be providing updates and analysis throughout the day, so stick with us.

Natalie Sherman
New York business reporter

Image 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.

• We're pausing our live coverage on tariffs for now. Stay up to date on the latest here: Three big unknowns ahead of Trump's 'Liberation Day' tariffs

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.

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.

John Campbell
BBC News NI economics and business editor

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.

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.

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.

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.

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.

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:

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.

Brandon Drenon
Reporting from Washington DC

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.

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.