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#TariffPause
Here’s a concise 7-point summary of the current situation regarding the U.S. tariffs and their global impact:
1. 10% Universal Tariff: A new minimum 10% tariff applies to all imports into the U.S., including from the UK and EU, replacing previous lower or zero tariffs (e.g., under free trade deals with Australia, South Korea).
2. China Tariff Hike: Tariffs on Chinese goods rise from **104% to 125%**, with an additional **20% linked to fentanyl**, intensifying the U.S.-China trade war.
3. Paused Tariffs*: Higher tariffs (e.g., **46% on Vietnam, 20% on EU**) are suspended until **July**, offering temporary relief but keeping the 10% baseline.
4. Active High Tariffs:
- **25% on cars** (including UK exports).
- **25% on steel/aluminum** and related products (UK exported **$720M** in 2024).
- **25% on select goods from Mexico/Canada**, despite past trade deals.
5. Global Economic Risks:
- U.S. average import tariffs could reach **24–27%**, the highest in a century.
- Slowdowns in the U.S. and China (**43% of global GDP**) may harm worldwide growth.
6. UK Impact:
- **Lost advantage** over EU (both now face 10% tariffs).
- **$9B car exports** to U.S. hit by 25% tariff; **$2.9B metal products** also affected.
- Services exports (most UK-U.S. trade) remain tariff-free.
7. Uncertainty & Criticism: Economists warn Trump’s abrupt policy shifts (pausing/hiking tariffs) create instability, deterring investment and worsening global trade tensions.
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26 April 2025
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