What's happened
President Trump’s new 10% global tariffs took effect today, replacing the threatened 15%. The tariffs, imposed under section 122 of the Trade Act of 1974, are temporary and face potential legal challenges. UK firms face ongoing uncertainty, with markets reacting to the policy shift and future risks.
What's behind the headline?
The new tariffs reflect Trump’s continued use of executive powers to impose trade measures outside congressional approval, risking legal challenges. The 10% rate, lower than the threatened 15%, offers temporary relief but introduces significant uncertainty for global markets and UK exporters. The European Union has paused trade deal ratification, awaiting clarity from the US, while UK firms face unpredictable costs and margins. The tariffs could escalate if Trump proceeds with higher rates, potentially triggering a broader trade conflict. Markets are already volatile, with investors wary of the impact on stocks and commodities, especially gold and oil. The US administration’s reliance on emergency powers underscores the fragility of current trade policies, which may face further legal hurdles and diplomatic tensions. The next 150 days will be critical in shaping US trade policy and its international repercussions, with the risk of escalation remaining high.
What the papers say
The Guardian reports that Trump’s tariffs, imposed under section 122, are temporary and face legal challenges, with the Supreme Court previously ruling many tariffs illegal. The British Chambers of Commerce highlights ongoing uncertainty for UK exporters, emphasizing the difficulty in planning amid potential future hikes. The Independent notes market reactions, including stock declines and currency fluctuations, driven by tariff fears and AI-related concerns. All sources agree that the tariffs’ future remains uncertain, with legal and diplomatic risks looming, and that UK and EU responses are cautious but prepared for escalation.
How we got here
Following a Supreme Court ruling that invalidated many of Trump’s previous tariffs, the president announced a new 10% global tariff on imports, effective from February 24, for 150 days. The tariffs are applied without congressional approval, under emergency powers, and are set to expire on July 24 unless renewed. The move aims to address international payments issues but faces legal and political scrutiny, especially given the court’s previous rulings.
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The British Chambers of Commerce is the national representative body of 52 Accredited Chambers of Commerce across the UK. The Chambers represent 75,000 businesses in all sectors, ranging from small start-ups to multinational companies.
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Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.