What Trump has announced on tariffs 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.

Trump also confirmed previously announced tariffs on specific goods, including 25% on steel, aluminium and foreign-made cars.

Read more:

• What are tariffs and why is Trump using them?
• At a glance: Trump's tariffs on China, the EU and others
• BBC Verify: How were Donald Trump's tariffs calculated?

Trump says "tariff" is his favourite word, and since the 1980s he has held a strong belief that the taxes can boost the US economy.

He believes they will encourage US consumers to buy more American-made goods, and increase the amount of tax raised. Trump also wants to reduce the gap between the value of US goods imported and exported.

The White House said the measures were necessary because countries were taking advantage of the US by imposing their own high tariffs and other trade barriers.

"For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike," Trump said as he announced the tariffs.

However, Trump is taking an enormous risk upon which he is staking his presidency, our North America correspondent Anthony Zurcher writes.

If successful, the move could fundamentally reshape the global economic order. Trump promises that it will rebuild American manufacturing and make the country more self-reliant.

But it risks alienating allies, while economists warn it could raise prices and threaten a global recession.

A messy global trade war looks inevitable, suggests the BBC's economics editor Faisal Islam.

Trump's decision to take tariff revenues to a level beyond those seen during the 1930s will mean huge changes to world trade patterns, he says.

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Economists warn this is likely because companies are likely to pass the increased cost of imported goods onto their customers. They could also reduce imports, meaning fewer products are available - putting further pressure on prices.

To raise the revenue Trump is hoping for, US consumers are going to have to swallow rises and keep on buying items made in other countries in similar quantities as now, says the BBC's deputy economics editor Dharshini David.

And as she points out, history shows the frontline casualties tend to be consumers, due to reduced choice and higher prices, and exporters.

"Growth, jobs and price stability are in the firing line," she writes.

Cars, lumber used to build houses, beer, whisky and tequila, and avocados are among the goods that could become more expensive.

Read more:

• History shows these wars rarely end well
• Six things that could get more expensive for Americans

Global stockmarkets fell after tariffs were announced and a series of world leaders condemned the measures.

European Commission chief Ursula von der Leyen said "the global economy will massively suffer" and that "the consequences will be dire for millions of people around the globe".

EU countries are finalising a response to 25% steel and aluminium tariffs, which have already been introduced, and could announce further measures.

The commission has promised to protect European businesses, including Germany's car industry, Italy's luxury goods and France's wine and champagne producers.

China has promised "resolute countermeasures", which are likely to hurt US companies trying to sell into the huge Chinese market.

However, Trump's tariffs may also benefit China by allowing President Xi Jinping to portray his country as a champion of free trade, the BBC's China correspondent Stephen McDonell says. Countries could be encouraged to build or strengthen their trade relationships with China.

UK Prime Minister Sir Keir Starmer acknowledged the economy will be hurt by the latest tariffs but promised to react with "cool and calm heads".

Business Secretary Jonathan Reynolds told MPs the government would launch a consultation to explore how retaliatory tariff measures against US products could affect British firms.

Canada's Prime Minister Mark Carney said the tariffs will "fundamentally change the international trading system".

He said Canada would retaliate against US tariffs soon, "with purpose and with force", to protect workers and strength the economy.

Read more:

• UK firms react: "It's a huge blow to Scottish whisky"
• How five big economies see new Trump Tariffs
• Global stocks slide as Trump tariffs hit markets
• World leaders criticise Trump tariffs as 'major blow'

The UK is now facing a 10% tariff on all goods heading to the US but there's a lot of uncertainty about what it could mean for the UK itself:

Prices could rise – or fall

Once tariffs are in place, the value of the dollar could strengthen. That might push up import costs for UK firms buying goods, which could then be passed on to consumers through higher prices.

But some economists say prices might actually drop at first. That's because firms that usually sell to the US might start sending their goods to countries like the UK instead – possibly leading to a surge of cheaper goods here.

Your job could be affected

Higher prices might lead workers to ask for bigger pay rises. If UK companies see their profits squeezed, job cuts could follow. More than 25,000 jobs in the car manufacturing sector could be at risk.

Interest rates could stay high

Rates are currently at 4.5%, and economists had expected two cuts this year. But if inflation rises because of higher prices, rates might stay higher for longer.

Read more

• How Trump's tariffs might affect you and your money