What the president announced – and why it matters
US President Donald Trump announced sweeping tariffs on goods from countries across the world, on what he called “Liberation Day”.
He says the move will make America wealthy again, but economists warn that prices could rise for Americans and fears of a global trade war have grown.
Tariffs are taxes charged on goods imported from other countries. Companies bringing the goods into the country pay the amount, typically a percentage of the goods’ value, to the government.
Trump has announced a 10% “baseline” tariff on all imports to the US – this is what the UK will face.
But 60 countries will be hit with higher rates of up to 50%, including Cambodia, Vietnam, Malaysia and Bangladesh. Countries in the European Union are facing a 20% tariff. The tariffs are set to take effect in days.
Courtesy: BBC