Donald Trump has announced a 10% tariff on all imports from the UK, a move that could prove devastating for the economy.

However, Britain got off lightly compared to other countries, only facing the "baseline" levy announced on all trading partners by the President.

Dozens of other countries will face this and so-called “reciprocal” tariffs, while all imports from the EU will face a 20% charge.

A No 10 source told Sky News the lower rate vindicated Sir Keir Starmer's charm offensive with the Republican tycoon.

“They rip us off,” Mr Trump told an audience of supporters and cabinet members gathered in the White House Rose Garden.

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He described the announcement as a “declaration of economic independence” and called it one of the most important moments in American history.

The US Commander-in-Chief said April 2, 2025, would “forever be remembered as the day American industry was reborn, the day America's destiny was reclaimed, and the day that we began to make America wealthy again.”

Mr Trump also confirmed a 25% levy on all foreign-made automobiles from midnight, with no exceptions — a move that could cost an estimated 25,000 UK jobs.

He described the US trade deficit as a “national emergency” that threatened national security.

“For decades, our country has been looted, pillaged, raped and plundered by nations near and far — both friend and foe alike,” he said.

“For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense.

“But now it's our turn to prosper and, in so doing, use trillions and trillions of dollars to reduce our taxes and pay down our national debt. And it’ll all happen very quickly.

“With today’s action, we are finally going to be able to make America great again — greater than ever before.”

He said the tariffs would help usher in a new “golden age” for the US.

Mr Trump also told his fellow world leaders: “If you want your tariff rate to be zero, then you build your product right here in America.”

(Image: Evan Vucci) Donald TrumpA No 10 source told Sky News the difference between a 20% and a 10% tariff was “lots of jobs.”

They added: “We will keep negotiating, keep cool and calm. We want to negotiate a sustainable trade deal, and of course want to get tariffs lowered.”

Many of the “reciprocal” tariff rates announced by Mr Trump appeared to be much higher than some economists had predicted, with some countries facing extra levies of between 10% and 50% on top of the baseline.

China will face a 34% charge, while India is on 26% and Vietnam on 46%.

Responding, the Scotch Whisky Association said the industry would be “disappointed” not to have escaped the tariffs.

A spokesperson said: “We welcome the intensive efforts by the UK Government to reach a deal with the US administration, and we continue to support this measured and pragmatic approach towards a mutually beneficial resolution.”

Tavish Scott, chief executive of Salmon Scotland, said they had "great confidence that Americans will continue to buy nutritious Scottish salmon."

Around a quarter of the salmon exported from Scotland is for the American market.

Mr Scott said: “Salmon producers want a business-like and stable trade relationship with the USA, so we support the UK Government’s efforts to achieve that outcome through a calm and measured approach.”

Deputy First Minister Kate Forbes said she was concerned about the impact of the tariffs.

She said: “The tariffs proposed will clearly have an impact on many Scottish businesses for which the US is an important export market.

“We do not believe unilateral measures by the US are the answer and we are concerned about the negative impact of trade barriers on the Scottish economy.

“We urge the US and all parties to come together and work towards mutually beneficial resolutions.

“We greatly value the strong social, cultural and economic ties Scotland shares with the US and we will work to ensure these continue to flourish.”

First Minister John Swinney is due to travel to New York this week for Tartan Week, where he said tariffs would be “part and parcel” of discussions.

The Federation of Small Businesses said the tariffs would cause “untold damage to small businesses trying to trade their way into profit while the domestic economy remains flat.”

The Confederation of British Industry said UK businesses need a “measured and proportionate approach” to Mr Trump’s announcement.

Earlier in the day, Chancellor Rachel Reeves said the government would not retaliate immediately.

She told MPs she had spoken to exporters that morning, who warned against a rushed response that could damage the prospects of a future trade deal with the US.

“We don’t want to be posturing here. The prize on offer is a good economic agreement between us and the United States,” she said.

“We are not going to do anything to put that in jeopardy. We are not going to rush into action to get a quick headline.”

She warned that the wider impact on the British economy would stem from “global tariffs” rather than UK-specific measures, due to depressed demand and rising inflation in other countries.

“I think that’s really important to understand, because even if we are able to secure an economic deal with the United States — which we very much want and are working hard to achieve — that doesn’t mean we’re out of the woods or unaffected by tariffs.

“So we don’t just want to see an agreement between the UK and the US; we want to see free trade and fair trade continue.”

At Prime Minister’s Questions, Sir Keir Starmer said the government had “prepared for all eventualities” and was working with companies likely to be affected.

“A trade war is in nobody’s interests, and the country deserves — and we will take — a calm, pragmatic approach,” he told MPs.

“That’s why constructive talks are progressing to agree a wider economic prosperity deal with the US.

“That’s why we’re working with all industries and sectors likely to be impacted.

“Our decisions will always be guided by the national interest, and that’s why we have prepared for all eventualities and will rule nothing out.”

Economists at the Office for Budget Responsibility have warned that the US tariffs could wipe out Ms Reeves’s fiscal “headroom” for day-to-day spending, potentially forcing her to raise taxes or impose further cuts in her autumn budget.

The tariffs could knock up to 1% off the size of the UK economy if they spark a full-blown trade war.

Analysis from the Institute for Public Policy Research (IPPR) suggested tariffs on car imports could threaten 25,000 UK jobs and “completely destabilise” the country’s car manufacturing sector.