In the News Teaching Activity – why has the US imposed tariffs on other countries? (Apr 2025)

President Trump’s sweeping tariffs mark a dramatic shift in US trade policy, aimed at reviving domestic industry and reducing reliance on foreign imports.

The economic rationale for the new US tariffs rests on a strategy to strengthen domestic manufacturing, reduce trade deficits, and address perceived imbalances in global trade. By taxing imports—particularly steel, aluminium, and automobiles—the administration seeks to make foreign goods less competitive, thereby encouraging domestic production and job creation. The tariffs also aim to incentivise foreign companies to relocate operations to the US, boosting local investment. Additionally, they are expected to raise federal revenue that could offset tax cuts. Fundamentally, the tariffs reflect a push to reshape trade relationships deemed unfair, promoting what the administration calls "reciprocal" market access.

US trade tariffs - House of Commons Library ( https://commonslibrary.parliament.uk/research-briefings/cbp-10240/ )

1. Identify the tariff rates imposed by the US on imports from the UK and specify which goods they apply to.

2. Assess the significance of the UK’s trade relationship with the US. In your answer, refer to both goods and services trade and assess the role of the US in the UK’s overall trade pattern.

3. Discuss how the US tariffs introduced in 2025 are intended to achieve economic objectives such as boosting domestic manufacturing, reducing the trade deficit, and increasing government revenue. Evaluate the extent to which these aims are likely to be achieved in practice.