London’s FTSE 100 plunged 4.95% on Thursday — its biggest daily fall since the March 2020 Covid lockdown — following Donald Trump’s sweeping new tariffs that have triggered global market turmoil.
Major UK firms bore the brunt, with Rolls-Royce shedding over 10% and miners like Antofagasta, Glencore, Fresnillo, and Anglo American down more than 8%. Banks also slid, with Barclays and NatWest both falling around 8%.
Markets across Europe and Asia also slumped for a second day. France’s CAC 40 dropped 0.92%, Germany’s DAX 0.74%, while Japan’s Nikkei 225 fell 4.3%. In the US, the S&P 500 and Nasdaq dropped over 4% and 5% respectively, wiping out £1.5 trillion in value.
Trump’s announcement of 10% tariffs on most US imports — and 25% on cars — has rattled investors.
“Trump has detonated the most aggressive trade shock the market has seen in decades,” said Stephen Innes of SPI Asset Management.
Olu Sonola of Fitch Ratings warned: “Many countries will likely end up in a recession.”
Despite market chaos, Trump remained bullish: “The markets are going to boom.” He also claimed UK Labour leader Sir Keir Starmer was “very happy” with the tariffs.
But Starmer responded: “Last night the President of the United States acted for his country, and that is his mandate. Today, I will act in Britain’s interests with mine.”
The UK government has set a May 1 deadline for public consultation on retaliatory tariffs and published a list of potential US goods to be targeted. Business Secretary Jonathan Reynolds said: “We do reserve the right to take any action we deem necessary if a deal is not secured.”
China has responded to the US move with 34% tariffs on American goods from April 10 and new export controls on rare-earth metals. Its Commerce Ministry said the goal is “to better safeguard national security and interests.”
The global sell-off reflects deepening fears of a full-blown trade war — and thousands of UK jobs, especially in the car industry, are believed to be at risk.
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