The FTSE 100 slid another day as investors absorbed the impact of earlier U.S. tariff announcements. London’s blue-chip index declined by 0.8%.
This drop follows a series of aggressive trade moves by U.S. President Donald Trump targeting Canada, Mexico, and China. Although European stocks received a brief boost on Wednesday evening when Trump temporarily exempted carmakers from tariffs on imports from Canada and Mexico, broader uncertainties about his policy continued to weigh on the markets.
Dan Coatsworth, an investment analyst at AJ Bell, observed, “There wasn’t any specific bad news to trigger a sell-off—it’s just one of those days where investors reassessed their portfolios amid an uncertain economic and geopolitical backdrop.”
U.S. shares also experienced declines, as Trump’s tariff strategy appears to have raised more questions than it answered, obscuring the outlook for the U.S. economy.
US and European Stocks Fluctuate on Tariff and Growth Concerns
U.S. shares dropped this afternoon as investors grew worried about the impact of tariffs on inflation and growth, while eurozone stocks advanced on rate cuts and spending optimism.
Wall Street’s major indices wavered following President Donald Trump’s announcement of a one-month suspension on most tariffs for Mexican goods. City Index analyst Fawad Razaqzada noted, “Indices were trying to bounce off their earlier lows after U.S. Secretary of Commerce Howard Lutnick indicated that the tariff reprieve is likely to cover all USMCA products,” referring to the trade pact linking the United States, Canada, and Mexico.
Despite a rebound on Wednesday—after the Trump administration delayed tariffs on cars and car parts from Canada and Mexico—the main U.S. indices remained lower this afternoon, with the Dow Jones down 1.1%, the S&P 500 down 1.7%, and the Nasdaq falling 2.2%.
In Europe, however, markets were more optimistic. Frankfurt’s DAX hit a record high as plans for a significant German defence and infrastructure investment program bolstered confidence in the country’s recovery from recession. France and other eurozone markets closed higher after the European Central Bank delivered an anticipated quarter-point interest rate cut. The DAX rose 1.6%, France’s CAC 40 increased 0.3%, and the pan-European Stoxx 600 inched up by over 0.1%.
