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US, UK and European stock markets plunge amid ‘Trump tariff tantrum’ US, UK and European stock markets plunge amid ‘Trump tariff tantrum’
(33 minutes later)
FTSE 100 and Dow Jones fall after US president rattles investors by targeting China, Canada and MexicoFTSE 100 and Dow Jones fall after US president rattles investors by targeting China, Canada and Mexico
Stock markets in the US, UK and Europe have suffered heavy falls after Donald Trump announced a number of tariffs, prompting fears of a global trade war.Stock markets in the US, UK and Europe have suffered heavy falls after Donald Trump announced a number of tariffs, prompting fears of a global trade war.
The US president rattled investors by signing off on tariffs on China, Canada and Mexico over the weekend, triggering what was quickly described as a “Trump tariff tantrum”.The US president rattled investors by signing off on tariffs on China, Canada and Mexico over the weekend, triggering what was quickly described as a “Trump tariff tantrum”.
The FTSE 100 share index shed 122 points, or 1.4% to hit 8,551 points, falling back from last Friday’s record high. The FTSE 100 share index shed 122 points, or 1.4%, to hit 8,551 points, falling back from last Friday’s record high.
Germany’s DAX index fell by 1.6%, while France’s CAC 40 was down by 1.5%. Spain’s IBEX dropped 1.5% and Italy’s FTSE MIB lost 1%.Germany’s DAX index fell by 1.6%, while France’s CAC 40 was down by 1.5%. Spain’s IBEX dropped 1.5% and Italy’s FTSE MIB lost 1%.
Wall Street followed European markets lower. The Dow Jones industrial average of 30 large US companies opened down 1.26%. The broader S&P 500 index fell by more than 1.6% while the tech-focused Nasdaq dropped by nearly 2%.Wall Street followed European markets lower. The Dow Jones industrial average of 30 large US companies opened down 1.26%. The broader S&P 500 index fell by more than 1.6% while the tech-focused Nasdaq dropped by nearly 2%.
Nvidia, the US tech company which suffered a record plunge in its price last week after the emergence of Chinese AI firm DeepSeek, was the biggest faller on the Dow, down more than 5%. Nvidia, the US tech company that suffered a record plunge in its price last week after the emergence of Chinese AI firm DeepSeek, was the biggest faller on the Dow, down more than 5%.
Shares in some of the biggest European carmakers slumped. Volkswagen, BMW, Porsche, Volvo Cars, Stellantis and the commercial vehicle maker Daimler Truck fell between about 5% and 6%. The French car parts supplier Valeo slumped by 8%.Shares in some of the biggest European carmakers slumped. Volkswagen, BMW, Porsche, Volvo Cars, Stellantis and the commercial vehicle maker Daimler Truck fell between about 5% and 6%. The French car parts supplier Valeo slumped by 8%.
Trump announced 25% tariffs on Mexico and Canada, and a 10% tariffs on Chinese goods.Trump announced 25% tariffs on Mexico and Canada, and a 10% tariffs on Chinese goods.
In London, shares fell in companies across several industries. Shares in Scottish Mortgage Investment Trust, which has investments in US tech companies, the retailer JD Sports Fashion and the miner Antofagasta fell more than 4%.In London, shares fell in companies across several industries. Shares in Scottish Mortgage Investment Trust, which has investments in US tech companies, the retailer JD Sports Fashion and the miner Antofagasta fell more than 4%.
The pound edged lower against a strengthened US dollar, down 0.6% at $1.23, but rose 0.5% to €1.20 as the euro came under pressure.The pound edged lower against a strengthened US dollar, down 0.6% at $1.23, but rose 0.5% to €1.20 as the euro came under pressure.
The Canadian dollar hit a 20-year low against the US dollar before recovering some losses. Doug Ford, the premier of Ontario, Canada’s most populous province, said he would ban US companies from provincial contracts until the tariffs are removed.The Canadian dollar hit a 20-year low against the US dollar before recovering some losses. Doug Ford, the premier of Ontario, Canada’s most populous province, said he would ban US companies from provincial contracts until the tariffs are removed.
He added: “US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.He added: “US-based businesses will now lose out on tens of billions of dollars in new revenues. They only have President Trump to blame.
“We’re going one step further. We’ll be ripping up the province’s contract with [Elon Musk’s] Starlink. Ontario won’t do business with people hellbent on destroying our economy.”“We’re going one step further. We’ll be ripping up the province’s contract with [Elon Musk’s] Starlink. Ontario won’t do business with people hellbent on destroying our economy.”
Asian markets were the first to open since the weekend’s tariff announcements, with Japan’s Nikkei slumping 2.8% and the Hang Seng in Hong Kong 1% lower, although mainland Chinese markets remain shut for the lunar new year holiday until Wednesday.Asian markets were the first to open since the weekend’s tariff announcements, with Japan’s Nikkei slumping 2.8% and the Hang Seng in Hong Kong 1% lower, although mainland Chinese markets remain shut for the lunar new year holiday until Wednesday.
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The sell-off also engulfed cryptocurrencies, which have rallied since Trump’s election in November. Bitcoin, the world’s biggest cryptocurrency, hit a three-week low of $91,441.89 overnight and stood at $95,730.35, down 6.2%.The sell-off also engulfed cryptocurrencies, which have rallied since Trump’s election in November. Bitcoin, the world’s biggest cryptocurrency, hit a three-week low of $91,441.89 overnight and stood at $95,730.35, down 6.2%.
One of Wall Street’s biggest banks, JPMorgan, expressed concern that the Trump administration is making conditions harder for businesses.One of Wall Street’s biggest banks, JPMorgan, expressed concern that the Trump administration is making conditions harder for businesses.
The JP Morgan Chase chief economist, Bruce Kasman, said: “This weekend’s actions challenge our underlying view that the Trump administration will strive to limit disruptive policies as it balances its desire to reduce engagement with the world with a commitment to support US businesses.The JP Morgan Chase chief economist, Bruce Kasman, said: “This weekend’s actions challenge our underlying view that the Trump administration will strive to limit disruptive policies as it balances its desire to reduce engagement with the world with a commitment to support US businesses.
“In short, the risk is that the policy mix is tilting (perhaps unintentionally) into a business-unfriendly stance.”“In short, the risk is that the policy mix is tilting (perhaps unintentionally) into a business-unfriendly stance.”
Richard Hunter, the head of markets at the online investment platform Interactive Investor, said: “February seems likely to begin with a Trump tariff tantrum.”Richard Hunter, the head of markets at the online investment platform Interactive Investor, said: “February seems likely to begin with a Trump tariff tantrum.”
Naeem Aslam, the chief investment officer at Zaye Capital Markets, said investors were bracing for heightened uncertainty in global trade and economic stability: “These downturns are driven by investor anxiety about the broader impact of tariffs on the global economy, particularly as European economies are highly intertwined with US trade policies.”Naeem Aslam, the chief investment officer at Zaye Capital Markets, said investors were bracing for heightened uncertainty in global trade and economic stability: “These downturns are driven by investor anxiety about the broader impact of tariffs on the global economy, particularly as European economies are highly intertwined with US trade policies.”
Kathleen Brooks, the research director at XTB, said: “This does not mean that the UK economy will avoid impact from the tariffs, but it does mean that the UK economy could be more resilient than elsewhere.”Kathleen Brooks, the research director at XTB, said: “This does not mean that the UK economy will avoid impact from the tariffs, but it does mean that the UK economy could be more resilient than elsewhere.”
She added: “It’s too early to know exactly what impact tariffs will have on the global economy, but it is fair to say that they have a high potential of triggering inflation, and weighing heavily on global growth, including the US economy.”She added: “It’s too early to know exactly what impact tariffs will have on the global economy, but it is fair to say that they have a high potential of triggering inflation, and weighing heavily on global growth, including the US economy.”