FTSE sinks sharply as tariff woes continue to grip markets
The UK’s top stocks slid heavily in value on Friday after worries over US tariff plans shook the global financial markets.
London’s FTSE 100 Index of companies dropped by 3.8%, or about 323 points, to 8,151.05 by Noon on Friday.
The index started lower but saw early losses worsen sharply after China announced it will impose a 34% reciprocal tariff on imports of all US products.
It dragged the FTSE 100 to its lowest level since December and has put it on track for its heaviest daily drop for two years.
Banking stocks were among the heavier fallers, with Barclays dropping by about 11% and NatWest down almost 10%.
Mining and commodity stocks were also among the fallers, after specific tariffs on metal production, such as aluminium.
Elsewhere in Europe, the French Cac 40 index was 4.2% lower and the German Dax was 5% lower.
It came after further declines in the Asian markets after heavy losses across global stock markets on Thursday.
The Hang Seng Index in Hong Kong was down 1.5% and Japan’s Nikkei dropped 2.4%, adding to losses in the previous session, as traders continued to digest the impact of US President Donald Trump’s tariff plans.
Meanwhile, the pound took a step back on Friday, dipping by 0.33% to 1.305 against the US dollar, having risen to its highest level since November last year, overnight.
It comes after Mr Trump’s “liberation day” announcement on Wednesday, in which he hit countries with a wave of tariffs.
The FTSE 100 fell to its lowest for almost three months in Thursday’s trading after the news that British exports to the US would face a blanket 10% tariff.
Meanwhile, in the US, the Dow Jones and S&P indexes both suffered their worst days since 2020.
It came as analysts at Barclays said there was a “high risk that the US economy enters a recession this year”.
Setting off to attend a golf tournament in Florida on Thursday, Mr Trump told reporters he thought things were going “very well”, adding: “The markets are going to boom.”
