Global stock markets plunge further but Trump insists tariffs policy 'going well'
by Asher McShane · LBCBy Asher McShane
Global stock markets slid further this morning as US President Donald Trump's tariffs continued to send shudders through financial markets.
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His tariffs plan put the world on the brink of a trade war and brought a level of shock unseen since the Covid pandemic rocked markets in 2020.
Stock markets in the UK, France, Germany, Japan, South Korea and Australia were all falling for a second day, with the Nikkei 225 nearly at its lowest level in eight months.
London's FTSE 100 index of companies declined further after the City's financial markets opened on Friday morning. The index slipped by 0.53%, or around 45 points, to 8,429.98 points immediately after the start of trading.
The fall, which followed further declines in the Asian markets amid continued concerns over US President Donald Trump's tariff plans, came after London's top index slid by 1.55% in Thursday's session.
The S&P 500 dropped more than 4%, while the tech-heavy Nasdaq was down more than 5% as around £1.5 trillion was wiped off the value of US stocks.
But a bullish President Trump insisted his tariffs rollout is going "very well" and that the US economy is "going to boom."
He also claimed the UK is happy with the tariffs he imposed on Wednesday's 'Liberation Day'.
Trump announced imports from the UK would be hit with 10% tariffs on Wednesday, the lowest rate possible - although this was still considered damaging by politicians and businesses.
Many countries and trade blocs, including China and the EU, were hit with much higher import taxes.
The British government said on Thursday that it was drawing up a list of goods that would be subject to retaliatory tariffs.
The US president also said he would be open to negotiations with other countries on their tariffs if they can "offer something phenomenal".
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Trump also said he would think about doing a deal with China in which Beijing approved the sale of TikTok and received lower tariffs in return.
The president said his plans will bolster production in the US and support home-grown goods, but economists have said the short-term impact will be higher prices and slower growth across the economy.
But the tariff plans have sent shockwaves through global markets on Thursday, most notably in the US.
The Dow Jones index dropped 3.89% - its biggest fall since 2020 - when Covid shocked the markets. The S&P 500 lost 4.85% and the Nasdaq Composite dropped 5.99%.
Nevertheless, Mr Trump told reporters that he thought the day was "going very well" after his bombshell tariff announcement, which included 10% on the UK - and much higher import taxes on others.
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“The markets are going to boom... the country is going to boom," the US president said.
He added that other counties “have taken advantage of us for many, many years.”
The announcement also caused political turmoil as other countries scrambled to work out how they would respond, amid fears of an escalating trade war.
Speaking on Thursday, Keir Starmer warned against "jumping straight into a trade war" in response to Donald Trump's trade tariffs but insisted "nothing is off the table" to protect Britain's national interest.
Putting the White House on notice, Downing Street launched a four-week “request for input” from businesses on hitting the US with retaliatory tariffs.
Business Secretary Jonathan Reynolds told MPs: "To enable the UK to have every option open to us in future, I am today launching a request for input on the implications for British businesses of possible retaliatory action. This is a formal step necessary for us to keep all options on the table.
"We will seek the views of UK stakeholders over four weeks until 1 May 2025 on products that could potentially be included in any UK tariff response. This exercise will also give businesses the chance to have their say and influence the design of any possible UK action."