Serving as a barrier to trade, tariffs raise the price of an imported product for businesses and consumers. The US bank JP Morgan has estimated that tariffs of 25% would raise new car prices by $4,000 (£3,092). The introduction of tariffs by one country can often collapse into a cycle of retaliation, or even a full-blown trade war. Additional costs from tariffs are typically borne by the end consumer, meaning Trump’s plans are likely to push up US living costs. Trump – who also imposed tariffs in his first term as president – is not the first US president to shock the UK on trade.

Source: The Guardian April 03, 2025 11:11 UTC