FTSE 100 opens and drops to one-year low as European and Asian markets proceed to plunge in Trump tariff aftershock | EUROtoday

Poland’s Prime Minister Donald Tusk has stated the inventory market response to the US President’s tariffs was “predictable”.

“The stock market earthquake from Japan through Europe to America must be survived without nervous decisions,” he wrote on social media, including that the Polish inventory market was additionally hit.

He added: “but political and economic stability are our assets in this difficult time. We will calmly persevere!”

World shares plunged on Monday as US President Donald Trump confirmed no signal of backing away from his sweeping tariff plans, and buyers guess the mounting danger of recession may see the Federal Reserve reducing rates of interest as early as May.

Monday’s rout extends a two-day selloff that wiped trillions of {dollars} from fairness values after US President Donald Trump’s administration introduced sweeping tariffs final week.

Japan’s blue-chip Nikkei slid nearly 8 per cent, European shares had been down 6 per cent, US inventory futures pointed to a pointy selloff on Wall Street afterward and the VIX shares volatility gauge jumped to its highest since August.

US President Donald Trump warned overseas governments they must pay “a lot of money” to elevate sweeping tariffs, characterising the duties as “medicine” and delivering extra ache for international monetary markets on Monday.

Speaking to reporters aboard Air Force One on Sunday, Trump indicated he was not involved about losses which have worn out trillions of {dollars} in worth from world inventory markets.

“I don’t want anything to go down. But sometimes you have to take medicine to fix something,” he stated as he returned from a weekend of golf in Florida.

France’s Cac 40 was down round 5.3 per cent within the morning’s buying and selling.

The panicked temper triggered by Donald Trump’s sweeping tariffs was felt throughout Europe on Monday morning.

The UK’s FTSE 100 has plunged to a one-year low as fears deepen over the worldwide affect of Donald Trump’s tariffs, regardless of Sir Keir Starmer promising new measures to assist under-pressure producers.

Analysts have warned that the size of disruption in international monetary markets is without doubt one of the worst to be felt in a long time.

The index, which tracks the nation’s high 100 listed companies, dropped by about 5 per cent in early buying and selling on Monday as a pointy sell-off kicked in shortly after markets opened.

The panicked temper was felt throughout Europe, with Germany’s Dax index recording a drop of about 6.5 per cent, and France’s Cac 40 down round 5.3 per cent within the morning.

Overnight, Asian shares throughout the board had been sinking to new lows after Mr Trump stated he is not going to again down on his sweeping import taxes until international locations even out their commerce with the US.

The prime minister has promised to make a raft of reforms designed to offer “certainty” and “support for industry” as companies grapple with the affect of recent guidelines from the White House.

Under new measures to be introduced on Monday, guidelines round fines for producers who don’t promote sufficient electrical vehicles will probably be relaxed, and supercar companies will probably be exempt.

While Sir Keir will reinstate the 2030 ban on the sale of recent petrol and diesel vehicles, luxurious carmakers like Aston Martin and McLaren will nonetheless be allowed to maintain producing petrol vehicles past that deadline.

Since Mr Trump introduced his monetary plans on Wednesday, a 25 per cent tariff is now utilized to overseas vehicles imported into the US, whereas different merchandise face a ten per cent levy.

Vauxhall’s father or mother firm, Stellantis, welcomed the federal government’s electrical vehicles announcement however known as for additional measures to stimulate demand for electrical autos.

Eurig Druce, UK group managing director for Stellantis UK, stated: “With the challenging geopolitical operating environment and increased intense pressure on the automotive industry, extending the current flexibilities and the introduction of new ones helps Stellantis in continuing to be compliant.”

But “whilst more people are moving to electric, it’s not yet at the pace of the Zev (zero-emission vehicles) mandate”.

“We welcome the flexibilities to allow our customers more freedom of choice. However, there is still a need to address market demand and introduce measures to stimulate it. We will continue to work closely with Government on this.”

The UK transport secretary didn’t say whether or not it’s time to rescind the provide of a state go to to Donald Trump and stated Sir Keir Starmer will probably be “honest” in conversations with allies concerning the “knock-on impact” of tariffs.

Asked whether or not the federal government ought to inform the US president to overlook the go to, Heidi Alexander informed BBC Radio 4’s Today programme: “So, standing up for British industry is about finding solutions, and, as I have said, a constantly escalating trade war is in nobody’s best interest, and I know that the Prime Minister has been speaking to (Premier) Mark Carney in Canada, President (Emmanuel) Macron from France, over the last couple of days to ensure that we have those conversations with our international partners to make sure that we navigate this situation as well as we can.

“And it is a part of the rationale why right this moment I’m asserting these modifications to the zero-emission autos mandate, which gives certainty to the automotive trade, British producers.”

Asked whether Sir Keir will urge Mr Trump to change course, Ms Alexander said the prime minister “has discussions internationally with allies, (and) he will probably be sincere about what’s each in the perfect pursuits of the British folks, and truly the type of international impacts of the worldwide tariffs can have a knock-on affect upon our economic system”.

Sir Keir Starmer has “constructed a relationship” with Donald Trump and will be “sincere” with the UK’s allies about the impacts of tariffs on the national and global economy, the transport secretary has said.

Speaking on BBC Radio 4’s Today programme, Heidi Alexander said: “So you are proper to say that the prime minister has constructed a relationship with President Trump.

“I think that has been obvious over the last couple of months.

“We’re clear that, really, a consistently escalating commerce battle the place tariffs are ratcheted up is unhealthy for international demand.

“It’s bad for prices, which means it’s bad for British consumers and so, obviously, when the prime minister has discussions internationally with allies, he will be honest about both what is in the best interests of the British people, and actually the sort of global impacts of the global tariffs will have a knock-on impact upon our economy.”

Sir Keir has been talking with Canadian Prime Minister Mark Carney and French President Emmanuel Macron over the previous couple of days relating to how greatest to “navigate” the present financial local weather, she added.

The UK transport secretary stated international tariffs are “bad news” when requested if the world was heading in the direction of a world recession.

Heidi Alexander informed Sky News: “So the imposition of global tariffs and the reciprocal tariffs that some countries have and retaliatory tariffs that some countries have decided to apply, are bad news for the global economy, because it’s bad for global demand, it’s bad for prices and it’s bad for consumers, and so that is why we have to do everything that we can to protect the interests of the British people and British businesses, and that is why we are setting out a package of support today for the car industry to provide certainty to British manufacturers and to ensure that they can remain at the cutting edge of the transition to electric vehicles, and also make sure that consumers can benefit from the cheaper running costs of electric vehicles as well.

“And in order that’s why the prime minister has been clear that we have to do completely all the pieces we are able to as a authorities to shelter British companies from these international financial headwinds.”

European Commissioner for Industrial Strategy Stephane Sejourne said the European Union’s response to US tariffs should be “proportionate” and hoped bourbon will be dropped from a list of US imports that could be slapped with additional tariffs.

The European Commission, which coordinates EU trade policy, will propose to members late on Monday a list of US products to hit with extra duties in response to US President Donald Trump’s steel and aluminium tariffs rather than the broader reciprocal levies.

The 27-nation EU bloc faces 25 per cent import tariffs on steel and aluminium and cars and “reciprocal” tariffs of 20 per cent from Wednesday for almost all other goods.

One product that has received more attention and exposed discord in the bloc is bourbon. The Commission has earmarked a 50 per cent tariff, prompting Trump to threaten a 200 per cent counter-tariff on EU alcoholic drinks if the bloc goes ahead.

Wine exporters France and Italy have both expressed concern.

“For bourbon, I’ve hopes that this component is taken out of the checklist. We will see within the coming hours,” Sejourne told France Inter radio on Monday.

Sejourne also said the EU had several cards up its sleeve to put pressure on America apart from tariffs, including “withdrawing US firms from our European public markets”.