The FTSE 100 dropped sharply this morning after Prime Minister Sir Keir Starmer admitted that newly announced U.S. tariffs would have a negative impact on the UK economy.
Britain’s benchmark stock index fell 1.7% to 8,482.71, despite the UK facing one of the lowest tariffs, 10%, under President Donald Trump’s sweeping trade measures. The more domestically focused FTSE 250 also declined, slipping 1.1% to 19,383.85.
Addressing business leaders at a Downing Street meeting, Sir Keir said: “There will be an economic impact from the decisions the U.S. has taken.” While insisting that the UK is “prepared,” he added that any future agreement with Trump’s administration would be made “only if it is in our national interest” and protects “the pound in the pocket” of working people.
“I want to be crystal clear: we are prepared. Indeed, one of the great strengths of this nation is our ability to keep a cool head,” the Prime Minister said.
The sharp declines in UK markets came amid a broader global sell-off, triggered by President Trump’s “Liberation Day” speech at the White House on Wednesday, in which he announced sweeping tariffs on goods from multiple countries.
In Europe, European Commission President Ursula von der Leyen condemned the U.S. move to impose 20% tariffs on EU goods, calling it a “major blow” to the global economy.
Speaking from Uzbekistan ahead of the EU–Central Asia summit, she warned the measures would have “dire consequences for millions of people around the world.”
Von der Leyen said the EU was ready to act if talks failed: “We are already finalising the first package of countermeasures in response to tariffs on steel. And we’re now preparing further actions to protect our interests and our businesses.”
