TRUMP TARIFFS EXPLAINED HOW THE US' 'LIBERATION DAY' WILL AFFECT YOU

WHAT ARE TARIFFS? HOW WILL THEY AFFECT YOU? WHAT IS THE UK GOVERNMENT DOING ABOUT IT? WE ANSWER YOUR QUESTIONS ON THE TOPIC THAT'S SHAKEN THE CAR INDUSTRY

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HE'S finally done it; President Donald Trump has long said that “tariffs” is his favourite word, threatening to impose them globally in order to boost manufacturing and investment in the US.

Now, as part of what Trump has described as the nation's 'Liberation Day', the US has inflicted unprecedented tariffs on imports from around the world (including the UK) in a move that will have a wide-reaching impact on the automotive industry, as well as consumers.

To cut through the jargon and confusion, we've summarised your most burning questions to explain how these tariffs, as distant and inconsequential to our daily lives as they may seem, will affect you.

WHAT ARE TARIFFS AND WHY HAS TRUMP IMPOSED THEM?

IN a nutshell, a tariff is a kind of taxation that's imposed at a country's border on the import and/or export of goods. Such tariffs are often used to discourage the use of foreign goods by raising prices, because most of the time, whatever is imposed is typically passed onto the consumer.

The reason behind Trump's usage of tariffs is that he believes foreign nations have unfairly benefitted from low import duties into the US, with many smaller nations charging much higher tariffs on goods imported from America. The President has branded the situation an “atrocity”, stating that the imposition of new tariffs will “make America wealthy again”.

WHAT TARIFFS ARE BEING IMPOSED ON THE UK?

UNDER Trump's new plans, products brought into the US from the UK are now subject to a 10 per cent import tariff. While this may sound extreme, it's actually the 'baseline' of what the White House is imposing and looks kind compared with the 20 per cent charged on items from the EU.