President Donald Trump has threatened a 200% tariff on alcohol from EU countries unless a "nasty 50% tariff on whisky" is stopped
Some European producers warn the alcohol tariff would be "devastating", and a US distilleries trade group says "we want toasts, not tariffs"
It's the latest escalation of a global trade war, which ramped up with 25% tariffs on all steel and aluminium entering the US
The EU responded to the steel and aluminium tariffs by saying it would raise its levies on up to €26bn ($28bn; £22bn) worth of US goods, including boats, bourbon and motorbikes, from 1 April
Meanwhile, Canada's Finance Minister Dominic LeBlanc and Ontario Premier Doug Ford met US Commerce Secretary Howard Lutnick amid an ongoing trade row between the North American neighbours
Ford said he felt "very positive" after their discussions
Tariffs are a central part of Trump's overall economic vision - he hopes they will boost US manufacturing and protect jobs, but critics say in the immediate term they will raise prices for US consumers
Tariffs are taxes charged on goods imported from other countries. The companies that bring goods into the country pay the tax to the government
Trump says US doesn't 'need anything' from Canada
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Image source, Getty ImagesThe EU says its response is 'strong but proportionate'
We can now bring you more details about the European Union's counter-measures in response to Donald Trump's decision to impose 25% tariffs on aluminium and steel imports, which came into effect today.
As we've reported, the 27-member bloc has announced counter-measures on US goods worth €26bn (£21.9bn, $28.3bn).
These measures will be partially introduced on 1 April and fully in place by 13 April.
The levies will cover "products ranging from boats to bourbon to motorbikes", in addition to steel and aluminium goods such as pipes, tin foil and household products like cooking ware or window frames.
Image source, EPA-EFE/REX/ShutterstockThe US president once described tariffs as the 'most beautiful word in the dictionary'
25 November 2024: Donald Trump says one of his first executive orders in office will be to charge Mexico and Canada a 25% tariff on all products entering the US. He says this will remain in place until fentanyl and “illegal aliens” are stopped from entering the US.
1 February 2025: The US president follows through on his promise, implementing 25% tariffs on goods from Canada and Mexico, as well as a 10% tax on China, saying these will become effective on 4 February.
4 February 2025: Trump backtracks, and agrees to hold off imposing the Canadian and Mexican tariffs for 30 days after last-minute calls with Canadian Prime Minister Justin Trudeau and Mexican President Claudia Sheinbaum.
5 March 2025: Tariffs on goods from Canada, Mexico and China take effect from 00:01, and Canada and China respond with retaliatory tariffs - Mexico says it will respond soon.
6 March 2025: A day later, Trump grants Mexico a temporary reprieve on tariffs - until 2 April. Later that day, Canada is given the same suspension deal - though some goods from both countries will still be subject to levies.
11 March 2025: Donald Trump responds to Ontario Premier Doug Ford’s threats to tax electricity exports to the US by doubling planned tariffs on Canadian steel and aluminium imports to 50%. The US president later reverts this measure back to 25% and Ford's own threat is suspended.
12 March 2025: A 25% duty on all steel and aluminium imports into the US takes effect - impacting all of the US’s trade partners including the EU, which reacts with €26bn (£21.9bn, $28.3bn) worth of counter-measures.
Image source, PA MediaLiberal Democrat Deputy Leader Daisy Cooper is calling for 'retaliatory measures'
We can now bring you some reaction from Liberal Democrat deputy leader Daisy Cooper who says the UK's Business Secretary, Jonathan Reynolds, needs to "toughen up" against Trump.
Responding to Trump's levelling of 25% tariffs on steel, Cooper says: "Being repeatedly kicked by the other side and doing nothing is not an effective negotiating position. The business secretary needs to toughen up.
"Meanwhile, the Conservatives would roll over and beg Trump for a bad trade deal that sells out British farmers and our NHS.
"Enough is enough. We must act from a position of strength, standing up for British steel and the UK economy through retaliatory measures."
Dharshini David
Deputy economics editor
Moves that affect our steel industry make headlines but how important is it to our economy?
While the UK once led the world in steelmaking, rapid advances in manufacturing and the ability of other countries to produce more cheaply means the UK acounts for less than 0.5% of world production
So steel making now accounts for just 0.1% of the UK’s GDP - and accounts directly for 0.1% of jobs nationally.
But those jobs tend to be highly skilled and well rewarded - and there may not be comparable roles for workers in those areas - meaning their loss can be devastating for communities.
And with steel vital for industries such as transport and defence, it can be wiser to produce your own rather than rely on others.
It’s why steel is known as a strategic industry - and the calls to protect it are taken seriously.
Image source, EPA-EFE/REX/ShutterstockChina's foreign ministry spokesperson Mao Ning says the imposition of tariffs violates trade rules
China will take "all necessary measures" to safeguard its rights and interests, the Chinese foreign ministry says after the US tariffs on aluminium and steel came into effect.
The US's actions have violated World Trade Organization rules, Chinese foreign ministry spokeswoman Mao Ning adds in a news conference.
Trump earlier doubled a blanket tariff on goods from China to 20%. This prompted Beijing to target US agriculture imports with new tariffs of 10% to 15% on chicken, beef, pork, wheat, and soybeans.
Image source, Getty ImagesCanada’s high commissioner to the UK has hit back at the "lawless trade world of Donald Trump” after tariffs of 25% on steel and aluminium came into effect this morning.
Speaking on the BBC's Today programme, Ralph Goodale says Canada will hit “particularly sensitive” products in the US in response to the tariffs.
He says the Canadian government will do its best to limit the impact on its people and will hit “the exact parts of the US economy that will have the biggest political pushback”.
There will be “flack on both sides”, he admits, given that the Canadian and US economies are “so integrated".
The US imported six million tonnes of steel from Canada in 2024, and some economists are warning that, while tariffs could help the US steel and aluminium industries, they may hurt the wider economy.
Image source, ReuDonald Trump holds an executive order about tariffs in February, flanked by Howard Lutnick
US Commerce Secretary Howard Lutnick says Donald Trump's economic policies are "worth it" even if they lead to a recession, in an interview with the BBC's US partner CBS.
"These policies are the most important thing America has ever had," Lutnick says.
"The only reason there could possibly be a recession is because the Biden nonsense that we had to live with. These policies produce revenues. They produce growth. They produce factories being built here."
Defending the president's economic policies, Lutnick denies that Tump's use of tariffs is causing chaos.
"It is not chaotic, and the only one who thinks it's chaotic is someone who's being silly," Lutnick adds.
His comments come after Trump ducked questions on Fox News about whether the US economy was facing a recession or price rises as a result of his decisions on tariffs. Instead, the president claimed the US was in a "period of transition".
"What we're doing is very big. We're bringing wealth back to America. That's a big thing, and there are always periods of, it takes a little time. It takes a little time, but I think it should be great for us," Trump said.
Henry Zeffman
Chief political correspondent
Image source, PA MediaThe Conservatives say President Trump’s decision not to exempt the UK from steel tariffs shows that the Labour government has “no plan”.
Andrew Griffith, the shadow business and trade secretary, says: “From today, British steel is now subject to US tariffs. After naively trying to cosy up to the EU with nothing to show for it, Labour have no plan."
Griffith adds: “The prime minister last week said US talks had started but the government has not published a single one of its objectives for a trade deal.
"If I were UK trade secretary, I would have camped out in Washington and Mar-a-Lago until we had a deal with our largest single trading partner to protect British interests.
“It’s not just when this government negotiates that Britain loses - it’s when they can’t even get themselves in the room.”
The US imports more steel than any other country - and Canada, Brazil and Mexico are its top three suppliers.
Canada is also the largest supplier of aluminium to the US, providing almost 60% of the amount imported.
As of today, a 25% tariff on all steel and aluminium imports into the US has come into force. Donald Trump reasons that this will boost US manufacturing.
But, American companies that use steel and aluminium to make products have warned the tariffs could push prices up.
During his first term as president, Trump previously announced tariffs of 25% on steel and 10% on aluminium in 2018 - but made exceptions to exclude Canada and Mexico.
Still, despite those previous exemptions, tariffs raised the average price of steel and aluminium in the US by 2.4% and 1.6% respectively, according to the US International Trade Commission.
Image source, EPAUK Trade Secretary Jonathan Reynolds says the government "will keep all options on the table" in response to Washington's "disappointing" decision to impose tariffs.
He adds that the UK is negotiating a wider economic agreement with the US to get rid of additional tariffs and for the benefit of businesses and the economy.
"Meanwhile we remain resolute in our support for UK industry. This government is working with affected companies today, and I back industry's application to the Trade Remedies Authority to investigate what further steps might be necessary to protect UK producers," Reynolds says.
"I will continue to engage closely and productively with the US to press the case for UK business interests."
Image source, ReutersTariffs are a central part of Trump's economic plans. He says tariffs will boost US manufacturing and protect jobs, as well as raise tax revenue and grow the economy.
Goods from China, Mexico and Canada accounted for more than 40% of imports into the US in 2024.
But Trump has accused the three countries of not doing enough to end the flow of migrants and illegal drugs such as fentanyl into the US.
All three countries have rejected the accusations.
Fentanyl is linked to tens of thousands of overdose deaths in the US each year.
Outgoing Canadian Prime Minister Justin Trudeau said his country was responsible for less than 1% of fentanyl entering the US, most of which comes from Mexico.
Donald Trump’s decision to impose tariffs is “extremely disappointing”, the director of UK Steel has said.
“Surely president Trump realises that we’re his friend, not his foe,” Gareth Stace tells BBC Radio 4's Today programme.
Stace calls on the US to collaborate with the UK on addressing shared concerns, such as reduced demand for steel.
“We can solve this together, but don’t alienate the UK steel sector,” he adds. Stace says the tariffs would cost UK steel customers £100m a year.
The move “couldn’t come at a worse time”, he adds, with the UK steel sector struggling with a “rapid rise” in imports, which are currently at 68%, up from 50% two years ago.
He called on the government to “rapidly boost and bolster” the UK’s trade defences to ensure that steel no longer heading for the US does not flood the UK market and drive down prices.
Rising concerns about the cost of the trade war sparked a sell-off in the US and global stock markets ahead of the latest round of tariffs.
The S&P 500 index of the largest firms listed in the US fell a further 0.7% on Tuesday after dropping 2.7% on Monday, which was its biggest one-day drop since December.
The UK's FTSE 100 share index, which had edged lower earlier on Tuesday, fell further and closed down more than 1%. The French Cac 40 index and German Dax followed a similar pattern.
Meanwhile, research firm Oxford Economics, said in a report it had lowered its US growth forecast for the year from 2.4% to 2% and made even steeper adjustments to its outlook for Canada and Mexico.
"Despite the downgrade, we still expect the US economy to outperform the other major advanced economies over the next couple of years," its report added.
Tariffs are taxes charged on goods imported from other countries.
The companies that bring the foreign goods into the country pay the tax to the government.
Typically, tariffs are a percentage of a product's value. A 20% tariff on Chinese goods means a product worth $10 (£7.76) has an additional $2 charge.
Firms may choose to pass on some or all of the cost of tariffs to customers.
The US has typically charged lower tariffs on goods than other countries.
Trump's new tariffs - and his promise to introduce further "reciprocal" levies on goods from other countries - could lead to a sharp increase in the prices people pay for goods in the US and around the globe.
Image source, EPAWe can now bring you more from European Commission President Ursula von der Leyen's statement in response to the US President Donald Trump's tariffs on aluminium and steel imports.
As we've reported, the European Union says it will impose retaliatory tariffs on €26bn (£21.9bn, $28.3bn) worth of US goods.
Von der Leyen says the commission "deeply regrets this measure".
"Tariffs are taxes. They are bad for business, and even worse for consumers. These tariffs are disrupting supply chains. They bring uncertainty for the economy," she says.
"The European Union must act to protect consumers and business. The counter-measures we take today are strong but proportionate."
The EU says it will impose counter-tariffs on €26bn (£21.9bn, $28.3bn) worth of American goods in response to US tariffs on all steel and aluminium imports.
The European Commission said it will end the current suspension of tariffs on US products on 1 April and will also put forward a new package of counter-measures on American goods by mid-April.
"We are ready to engage in meaningful dialogue. I have entrusted Trade Commissioner Maros Sefcovic to resume his talks to explore better solutions with the US," Ursula von der Leyen, the president of the European Commission, said in a statement.
We'll bring you more detail on this announcement shortly.
Hello and welcome to our live coverage of the tariffs imposed by US President Donald Trump on steel and aluminium imports.
The measure, which raises a flat duty on steel and aluminium entering the US to 25%, and ends all country exemptions to the levies, will likely escalate tensions with some of America's largest trading partners.
It sparked an immediate response from the European Union which said it will impose counter tariffs on billions of euros of US goods.
Trump hopes the tariffs will boost US steel and aluminium production but critics say it will raise prices for US consumers and dent economic growth.
The US is a major importer of aluminium and steel, and Canada, Mexico and Brazil are among its largest suppliers of the metals.
Stay with us as we bring you the latest updates and analysis through the UK morning and when the US wakes up.