Global stock markets under pressure after Trump’s latest tariff blow

London’s blue chip share index has slumped lower amid a global stock market backlash after US President Donald Trump unleashed the latest sweeping trade tariffs.

The FTSE 100 Index fell 0.6% – down 50.2 points to 9082.7 – in mid-morning trade on Friday, while European markets suffered steeper falls as the Cac 40 in France dropped 1.8% and Germany’s Dax was off 1.7%.

It follows big drops on Asian indices overnight after the Hang Seng in China fell 1.1% and Japan’s Nikkei 225 was 0.7% down.

Mr Trump has signed an executive order setting new tariffs on a raft of US trading partners, which will take effect on August 7.

Big exporters to the US, such as Taiwan, will be hit with steep new levies.

While the latest tariffs are less harsh some of those announced on his so-called Liberation Day on April 2, it still sees many of US trading partners facing sharp rises.

The pound was also lower on Friday, down 0.5% to 1.314 US dollars and 0.3% lower at 1.153 euro.

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Countries playing tariff poker with Donald Trump have had their bluff called with new US import tax rates announced for 92 nations shortly before the August 1 deadline came into play, with rates ranging from 10% to 41%.

“Mexico was the only reprieve of note, earning a 90-day extension to agree a deal.

“China already faces a separate deadline of August 12.”

The declines saw the FTSE 100 drop below the 9,100 level, having hit record highs in recent weeks, but Mr Nathan added this was “to be expected after climbing 4% in July”.

Joshua Mahony, chief market analyst at Rostro trading group, said markets will be concerned over the impact of the tariffs and whether it will send global inflation soaring.

He said: “Part of the problem for markets is the question of who will pay for these tariffs, with the best-case scenario being that foreign businesses bear the brunt through lower margins.

“However, that is not entirely the case, with US consumers starting to feel the pinch through higher prices, while earnings from the likes of General Motors, Ford and Apple have highlighted the fact that they are expected to lose billions at the hands of Trump’s tariffs.”