UK shares drop after Trump announces tariff escalation
UK shares fell Monday, after U.S. president Donald Trump said that his tariffs will cover all countries. This intensified a global trade conflict.
The blue-chip FTSE 100 fell 1% as of 1011 GMT; the midcap FTSE 250 index dropped 1.9% to a more-than-eleven-month low.
Trump told reporters that the tariffs will affect essentially all countries. He will announce reciprocal tariffs Wednesday and auto levies Thursday. Specifics are still unclear.
According to Downing Street, during a phone call on Sunday, British Prime Minister Keir starmer and Trump discussed the "productive negotiation" towards a UK-U.S. Economic Prosperity Deal.
Weekend reports suggested that Trump was pushing his advisers to more aggressive measures, despite the fact that he had said on Friday he would exempt certain countries.
Bank of England data released on Monday revealed that British mortgage approvals dipped in February. Consumer credit grew at a slower rate than it did the month before.
Among the individual stocks, Associated British Foods fell 2.7% following the announcement by the food processing company that Paul Marchant, the head of Primark's clothing business, had resigned immediately after an allegation was made about his behavior towards an individual in a social setting.
Pets at Home Group's stock fell 11.6% following a warning that its pretax profit for fiscal 2026 would plummet due to rising costs, and a weakening demand for pet accessories.
Wood Group's stock fell 29.1% following an independent Deloitte review that found "material weaknesses and failings" within the financial culture of its Projects Business Unit.
Aston Martin, on the other hand, rose 9.4% when the company announced that it would raise more than 125 million pounds ($161.9million) by selling its minority stakes in the Formula One Team owned by Chairman Lawrence Stroll.
(source: Reuters)
