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Image source, Lydia Forson

We've been hearing from Lydia Forson in Accra, Ghana, who owns Kinky Matters, a hair care product company. She says the prospect of tariffs imposed by Donald Trump is "unnerving" because she has a lot of customers in the US.

"We were trying to expand more on export to the US because of the growing customer base. So, we're a little nervous," she tells the BBC's OS radio programme.

Over in New Delhi, Dinanath Upmanyu, the chief executive of clothes maker Billoomi Fashion, tells BBC radio he is worried. He sells 60% of his products to the US market and "utimately, it is the customer who has to pay," he says.

He says he fears American customers "may stop buying or they may buy some alternatives. The US is one of the biggest importers of Indian textiles."

Does the US currently really have lower tariffs than its trading partners?published at 19:51 British Summer Time 2 April

19:51 BST 2 April

By Ben Chu, BBC Verify policy and analysis correspondent

One of Trump’s justification for imposing so-called reciprocal tariffs is that some countries have higher tariffs on American imports than the US charges on imports from them.

He argues this represents "unfair" trade.

The US had an average tariff of 3.3% in 2023 according to World Trade Organisation (WTO) data.

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 India’s 17% average tariff and South Korea’s 13.4%.

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

However, under WTO rules this does not constitute "unfair trade", as long as countries apply the same tariff rate to the same category of goods coming from every other country, rather than discriminating between different countries in setting the rate.

• Read more in BBC Verify's piece from February

President Trump is considering announcing the creation of what he calls the "External Revenue Service", the BBC's US partner CBS News reports. Trump has previously described this hypothetical agency as an arm of government which would "collect tariffs, duties, and all revenue that come from foreign sources."

The report from CBS, cited to sources, also includes information that the president is likely to charge tariffs on low-value merchandise shipped from China to individual US consumers. The White House has not commented on this.

Currently, a US loophole allows duty-free shipments of Chinese goods worth less than $800. This has enabled Chinese companies such as Shein and Temu to skirt import fees.

The changes - if they happen - would affect the shopping habits of American consumers who buy cheap products online from China.

Bernd Debusmann Jr
Reporting from the White House

Image source, Getty Images

As staff prepare for this afternoon's tariffs announcement event in the Rose Garden, a news report claiming Elon Musk will leave his Doge role "soon" has become another topic of conversation here at the White House.

According to Politico, President Trump has told his inner circle that the billionaire tycoon will leave his government role in the coming weeks.

The White House called the report "garbage". And Trump's Press Secretary Karoline Leavitt said on X that Musk will "leave when his work is complete", although she did not specify a timeline.

The duration of Musk's work with the so-called Department of Government Efficiency - where he has overseen sweeping cuts across the US government - has never been made clear.

He is classified as a "special government employee", which would limit his service to 130 days a year.

In a recent interview with Fox News, Musk said that he believes Doge "will have accomplished most of the work required" within that 130-day timeframe.

The Politico report comes the morning after Musk suffered a major setback in an election in Wisconsin. He spent $20m campaigning for a conservative judge who lost the race for a seat on the state's supreme court.

Nadine Yousif
Reporting from Toronto

Image source, Getty Images

The threatened tariffs from US President Donald Trump have, in many ways, upended Canada's federal election set for later this month.

It is an issue that is now top of mind for Canadians voters, who are worried that additional US tariffs will mean further job losses and uncertainty, and a weaker Canadian dollar. The majority of exported Canadian goods - around 75% - are sold to the US.

Leaders of all federal parties have been busy pitching their own plans on how they would respond. Mark Carney, the Liberal leader who is also juggling his role of incumbent prime minister, has vowed to be strategic and measured.

His main opponent, Conservative leader Pierre Poilievre, said in an announcement early today that he would impose so-called reciprocal tariffs "to discourage American attacks," and to accelerate trade negotiations with the US to put an end to the uncertainty. A free trade agreement - known as the USMCA - between Canada, the US and Mexico is up for review in 2026.

"Why wait? Why not get it done now?" Poilievre asked.

New Democratic Party leader Jagmeet Singh, meanwhile, made his own announcement today in Winnipeg, promising to support workers by investing any money collected from retaliatory tariffs on the US back into affected sectors.

Ana Faguy
US Reporter

Image source, Getty Images

Anita Doherty, a Maryland resident, says she and her husband had been procrastinating on replacing their aging car, but when the Trump tariffs started dominating the news cycle, she rushed to a used car dealership.

Last month, she bought a used Toyota.

"We decided to buy now, instead of waiting and potentially spending more money," Doherty tells the BBC. "It's a no brainer that prices of all kinds of things are going to be going up."

Doherty and her husband are in their 60s, and she's semi-retired. She says she's nervous about what the tariffs are going to mean for them.

With some of her retirement funds invested in the stock market, she's seen them take a hit in recent months.

"It's not fun to watch you retirement fund dwindle when you're in your retirement years and you don't have time to watch them bounce back."

Let's take a broad view of the current state of the US stock market, as Wall Street investors wait to see what Donald Trump has to say later.

As of 13:30 New York time (18:30 GMT) and following a slump earlier in the day, the three most important indices tracking US stock prices were all marginally up:

• The Dow Jones Industrial Average rose 0.7% to hit 42,282.91
• The Nasdaq Composite Index reached 17,636.47, a 1.07% rise
• The S&P500 went up by 0.75% to hit 5,765.05

But this is not their final value for the day, as trading is open on Wall Street for several more hours. The final bell calling a halt to the day's work will be at 16:00 in New York, the same time as the scheduled tariffs announcement.

Nadine Yousif
Reporting from Toronto

Image source, Getty Images

US President Donald Trump's "Liberation Day" has arrived, and Canada is bracing itself for the impact.

The country is in the middle of a federal election, which makes the timing tricky for candidates. Liberal leader and incumbent Prime Minister Mark Carney has had to step away from the campaign trail a few times - including today - to prepare Canada's response.

Carney has said that US tariffs are "the most significant crisis of our lifetimes". Earlier in the week, he put it bluntly: "Canada's old relationship with the US is over," he said, adding that Canada must now "fundamentally reimagine" its economy.

He has so far hinted at a measured response, vowing that Canada will be "very deliberate" in its retaliation to ensure minimal impact on Canadian businesses.

"We will not disadvantage Canadian producers and workers," he said.

So far, Carney seems to benefit politically from the tariff chaos. As the incumbent prime minister, he has been able to play the role he is auditioning for. Polls show his approach is resonating, with the Liberals now ahead by six points from their rival Conservative party.

How high might Trump raise US tariffs?published at 18:27 British Summer Time 2 April

18:27 BST 2 April

By Ben Chu, BBC Verify policy and analysis correspondent

There are a wide range of estimates because Trump has not been clear about how his new tariffs will be designed and to which countries they will apply.

Bloomberg Economics think that, on top of the tariffs Trump has already announced since returning to office, the US’s average tariff rate on all imports could rise to 10.8%, which would be the highest rate since the 1940s.

The Budget Lab at Yale University estimate it could hit 15.5%, which would be the highest since the 1930s.

However, Bloomberg Economics also think it’s also possible the US average tariff rate could hit almost 35%, a rate not seen in the US since the 1800s.

This range of estimates underlines just how much uncertainty there is about what the president will do.

Beer and empty aluminium cans are set to be included within the scope of the previously announced 25% tariff on steel and aluminium tariffs.

The revisions will come into effect from Friday, according to the Department of Commerce.

As a reminder, on 12 March, President Trump implemented a 25% import tax on all steel and aluminium entering the US - the move ended previous exemptions for allies including Canada and the EU.

Rank-and-file steelworkers and auto workers have been invited to the White House for President Trump's tariffs announcement, our US partner CBS News reports, citing two White House officials.

They'll join the majority of Trump's cabinet, including Vice-President JD Vance, with House Speaker Mike Johnson, House Majority Leader Steve Scalise and other members of Congress who are also invited.

As a reminder, the announcement is due to take place in White House Rose Garden at 16:00 ET (21:00 BST).

We'll be following along live in our page and bringing you the key lines and further analysis from our team of correspondents.

As mentioned in our last post, the argument over tariffs is complex, but here are some of the arguments against.

Higher prices: Tariffs are a tax on imports, so they introduce a new cost that has to be paid by someone. Typically that results in higher prices, at least to some degree, for the end customer. This has a disproportionate effect on lower earners, who have less money to spend.

Hit to growth: When prices rise, people buy less. That hurts businesses and leads to lower growth. It can even tip an economy into recession.

Makes firms less efficient: Firms become less efficient if they are making decisions about production and supply chains based on tariffs, instead of other factors like cost and talent. This makes them less capable of competing globally.

Inhibits trade: Global supply chains are so intertwined that even a single product can involve parts moving across borders several times. Tariffs can mean multiple bits of red tape for one end product - discouraging trade and ultimately weakening global relationships.

Retaliation: If one country imposes tariffs, another might retaliate with their own. Each side could keep escalating - a situation known as a trade war.

Image source, Reuters

Most countries levy tariffs in some form. Here's a brief overview of some of the arguments in favour - we’ve done the same thing for the "against" camp and will bring you that in our next post.

Protection of a fledgling industry: Some countries have used tariffs as a way to help establish a new industry domestically, before they are competitive.

National resilience: Some products, such as food or weapons, are sometimes deemed worth retaining domestically, even if they could be produced more efficiently elsewhere. Subsidies can be used for the same effect.

Fair trade: If another country has lower standards - for example on the environment or workers’ rights - or they subsidise their industries with government cash, or have tariffs themselves, then imposing tariffs can level the playing field.

Jobs: Tariffs are a charge on entry, which can incentivise businesses to make their product in the country they want to sell in. This can boost employment.

Income: Tariffs are a tax paid to the government, and so can bolster the public finances. Donald Trump, for example, says tariffs will enable him to cut taxes for American workers.

Negotiating tactic: The threat of tariffs alone can be a way to try to win concessions from others in trade talks - or in other negotiations.

Could consumers be the wildcard in trade wars?published at 17:31 British Summer Time 2 April

17:31 BST 2 April

Faisal Islam
Economics editor

Image source, Getty Images

Tesla’s quarterly figures were a big miss.

Elon Musk’s electric vehicle company sold 40,000 fewer cars than expected by the market, and 50,000 fewer than in the same period last year. Its share price fell 6%.

While the company points to its transition to a new version of its most popular car, there have clearly been protests and boycotts around the world at Musk’s outspoken and controversial political involvement. At one point President Trump held what appeared to be a sales event at the White House.

It points to a significant and potentially underrated feature of a trade war in the social media age. Retaliation does not necessarily require a government issuing a tariff.

Consumers can enter their own pressure on other countries, that could be even more powerful than a tariff. It is clearly occurring in Canadian market for both US goods and travel. Could consumers be the wildcard in this trade battle?

Image source, EPA

Democrats have widely denounced Trump's agenda on tariffs, including House Minority Leader Hakeem Jeffries, who is speaking this morning ahead of the White House announcement.

Jeffries is criticising the Trump administration for its "poor record" on lowering the cost of living for ordinary Americans.

"America is too expensive," he tells reporters at his weekly press conference. "Costs aren't going down in America, they're going up. And the Trump tariffs are going to make things more costly."

He accuses Trump of driving the US economy towards recession. "This is not liberation day," he says. "It's recession day."

Image source, Reuters

Earlier we brought you comments from Italy's PM Giorgia Meloni, warning against a trade war. Now we're hearing similar sentiments from Germany.

The country is Europe's biggest economy and the third biggest in the world, according to World Bank data, after the US and China. Ahead of Trump's announcement on new tariffs later today, it's warning back-and-forth tariffs will be bad for everyone involved.

"The costs of a trade war do not fall on one side but can become expensive for both sides," says government spokesman Steffen Hebestreit.

He adds that Berlin is "ready and willing to negotiate at the European level with the United States" to avoid being drawn into a trade war.

Germany's economy is geared towards exports, particularly vehicles and vehicle parts. It exported roughly 3.4 million new cars last year, external, according to German government data, with about 13% of them imported by the US.

Image source, Reuters

Mexican President Claudia Sheinbaum has underlined that Mexico will not be seeking "tit-for-tat" retaliatory tariffs on the US, the Reuters news agency is reporting.

She says that a "comprehensive plan" will be announced tomorrow.

As a reminder, Mexico has already seen raised duties on certain products - with President Trump previously imposing 25% tariffs on all steel and aluminium imports as well as additional 25% tariffs on other imports from both Mexico and Canada.

The impact of tariffs on UK prices remains uncertainpublished at 16:37 British Summer Time 2 April

16:37 BST 2 April

Dharshini David
Deputy economics editor

The impact of a US tariff on all British goods is very uncertain. It depends on not just on the scale of any tariffs applied on British products, but how the government, businesses and consumers react.

As the car industry knows already, tariffs are extremely worrying for the industries affected - as an exporter you hope that either some of it can be soaked up in the supply chain or your American customers will be happy to pay higher prices - or you take a hit to your own profits by lowering prices.

Or you may lose sales. Tariffs are undeniably bad news for exporters in the firing line.

But their impact on prices in the UK is uncertain.

If the UK government retaliates with tariffs on American products, households here could face rises. But countries such as China, if disadvantaged by American tariffs, could try to send their goods here instead, pushing down prices.

Image source, Getty Images

As Trump's tariffs announcement - or "Liberation Day" as he's billing it - looms, here's what you need to know:

When: around 16:00 EST (21:00 BST)

Where: the White House Rose Garden in Washington DC

What: President Donald Trump will announce his latest tariffs in a spoken statement, at an event called "Make America Wealthy Again"

After Trump speaks, we'll have a raft of correspondents dissecting what it means for the US, the rest of the world and you as a consumer.

And if you're hungry for more basics, we've got everything you need to know here.

Davide Ghiglione
Reporting from Rome

Image source, Reuters

Italian Prime Minister Giorgia Meloni is warning that new US tariffs could have severe consequences for Italian producers and limit access to high-quality Italian goods for American consumers.

Addressing the looming trade tensions, Meloni says: “The United States is our second-largest export market, with a 17% increase in exports in 2024. The US market is crucial for us."

"It is clear that the introduction of new tariffs would have a heavy impact on Italian producers. I also believe it would be unfair to many Americans, as it would limit access to our excellent products to only those who can afford higher prices,” she adds.

Meloni also stresses the need to avoid a trade war but says they wouldn't exclude taking measures to "defend our industries if necessary".

Italian President Sergio Mattarella also called tariffs a “profound mistake” and urged Europe to respond with a “united, calm, and determined” stance.