- Historic Fall: London’s FTSE 100 plummeted 4.95% on Thursday, its biggest daily fall since the March 2020 Covid lockdown.
- Global Market Turmoil: Donald Trump’s sweeping new tariffs triggered the market chaos, with major UK firms bearing the brunt.
- Retaliatory Measures: The UK government has set a May 1 deadline for public consultation on retaliatory tariffs, while China has imposed 34% tariffs on American goods.
The UK stock market has experienced its biggest daily fall since the Covid lockdown, with the FTSE 100 plunging 4.95% on Thursday. This drastic drop is a direct result of Donald Trump’s newly imposed tariffs, which have sparked global market turmoil.
Major UK firms have been severely impacted, with Rolls-Royce shedding over 10% and miners like Antofagasta, Glencore, Fresnillo, and Anglo American down more than 8%. Banks have also taken a hit, with Barclays and NatWest both falling around 8%.
The repercussions of Trump’s tariffs have been felt across Europe and Asia, with France’s CAC 40 dropping 0.92%, Germany’s DAX 0.74%, and Japan’s Nikkei 225 falling 4.3%. In the US, the S&P 500 and Nasdaq dropped over 4% and 5% respectively, wiping out £1.5 trillion in value.
Experts warn that the ongoing trade tensions could lead to a recession in many countries. Stephen Innes of SPI Asset Management stated, “Trump has detonated the most aggressive trade shock the market has seen in decades.” Olu Sonola of Fitch Ratings echoed this sentiment, cautioning that “many countries will likely end up in a recession.”
In response to the US tariffs, China has imposed 34% tariffs on American goods from April 10 and introduced new export controls on rare-earth metals. The UK government has also set a May 1 deadline for public consultation on retaliatory tariffs, with Business Secretary Jonathan Reynolds stating, “We do reserve the right to take any action we deem necessary if a deal is not secured.”
