London open: FTSE tumbles as tariffs kick in

(Sharecast News) - London stocks tumbled in early trade on Wednesday as Trump's sweeping tariffs came into force, including a swingeing 104% on China.

At 0900 BST, the FTSE 100 was down 1.7% at 7,778.81.

Dozens of countries, including a number of America's traditional trading partners, have had so-called reciprocal tariffs imposed on them by Washington, the highest in decades.

China's record rate was announced after Beijing refused to rule out retaliatory levies on US products.

The tariff regime, first announced on 2 April, has caused carnage on global markets, sending both equities and oil tumbling.

Equity markets rallied yesterday following days of falls, but Asian markets slumped once again overnight as the tariffs took effect.

Trump acknowledged the tariffs had been "somewhat explosive". But he insisted: "After years of being ripped off, it's America's turn to do the ripping." He also said countries remained keen to negotiate trade deals with the Washington."

Susannah Streeter, head of money and markets at Hargreaves Lansdown, said: "The feared escalation of the trade war is playing out and it's sent another jolt of deep pessimism through markets. Trump continues to act as though trade is his plaything, and he's wound up the equity rollercoaster for another plunge downwards. With no last-minute reprieve being snuck in before the midnight deadline, Trump's punishing 104% tariffs on Chinese goods have come into effect.

"For China, so highly reliant on exports to power the economy, this will hurt, as its goods become uncompetitive in the vast US market. But its hugely painful for US companies, reliant on cheaper Chinese goods and parts, and American consumers will ultimately bear the cost, with prices set to rise across a huge array of goods, from toys and clothes to phones and gaming consoles. This is in addition to the price increases coming in for cars, as foreign made vehicles become so much more expensive due to 25% tariffs on imports.

"The world's largest and second largest economies are now locked in a trade war, and neither nation seems willing to back down. Trump appears to have cracked open a door, saying he will negotiate, but China will not want to lose face and compromise. There's also a queue building up for talks with the US as countries bang on the door of the White House, seeking respite from tariffs. This offers glimmers of hope that many compromises will eventually be reached, but unpicking the knot of tariffs will take time."

In equity markets, pharma giants GSK and AstraZeneca slid after Trump said on Tuesday that the US would soon announce a "major" tariff on pharmaceutical imports.

Recruiter PageGroup fell as it said that its slower end to the fourth quarter has continued into the new financial year, with the full-year outlook now uncertain due to an "increasingly unpredictable economic environment".

Chief executive Nicholas Kirk said: "Given the recent introduction of tariffs and the resultant market uncertainty, we are not providing forward-looking guidance on business performance."

Assura rallied after saying it had rejected a �1.5bn merger proposal from Primary Health Properties, as it was "not at a level that is sufficient to be recommended to shareholders".

Instead, Assura has agreed to be bought by a consortium of private equity firm KKR and Stonepeak in a �1.6bn deal.

Market Movers

FTSE 100 (UKX) 7,778.81 -1.67%

FTSE 250 (MCX) 18,057.39 -1.59%

techMARK (TASX) 4,208.78 -1.96%

FTSE 100 - Risers

Fresnillo (FRES) 881.00p 2.20%

Airtel Africa (AAF) 150.70p 2.03%

BAE Systems (BA.) 1,581.50p 0.96%

Antofagasta (ANTO) 1,393.00p 0.25%

RELX FINANCE BV 3.375% GTD NTS 20/03/33 (BW73) 99.72p 0.00%

Glencore (GLEN) 238.55p -0.02%

Compass Group (CPG) 2,455.00p -0.04%

The Sage Group (SGE) 1,134.00p -0.09%

Hiscox Limited (DI) (HSX) 1,109.00p -0.09%

BT Group (BT.A) 151.10p -0.13%

FTSE 100 - Fallers

AstraZeneca (AZN) 9,859.00p -4.96%

GSK (GSK) 1,285.00p -4.14%

BP (BP.) 341.80p -3.51%

Smurfit Westrock (DI) (SWR) 2,992.00p -3.45%

Melrose Industries (MRO) 392.50p -3.44%

Schroders (SDR) 293.20p -3.23%

WPP (WPP) 501.60p -3.17%

Scottish Mortgage Inv Trust (SMT) 830.20p -3.13%

Flutter Entertainment (DI) (FLTR) 16,770.00p -2.95%

Hikma Pharmaceuticals (HIK) 1,790.00p -2.77%

FTSE 250 - Risers

Assura (AGR) 47.76p 5.66%

Endeavour Mining (EDV) 1,769.00p 1.78%

BH Macro Ltd. GBP Shares (BHMG) 391.50p 1.42%

Fidelity China Special Situations (FCSS) 219.50p 1.39%

Foresight Solar Fund Limited (FSFL) 76.30p 1.33%

Ruffer Investment Company Ltd Red PTG Pref Shares (RICA) 288.50p 1.23%

Hochschild Mining (HOC) 263.80p 1.15%

Pets at Home Group (PETS) 217.80p 0.46%

Primary Health Properties (PHP) 94.80p 0.42%

Pollen Street Group Limited (POLN) 684.00p 0.29%

FTSE 250 - Fallers

ITV (ITV) 66.00p -5.24%

Oxford Nanopore Technologies (ONT) 101.90p -4.94%

Ithaca Energy (ITH) 126.50p -4.46%

Raspberry PI Holdings (RPI) 427.00p -4.35%

Trustpilot Group (TRST) 186.90p -4.20%

Jupiter Fund Management (JUP) 69.40p -4.01%

Harbour Energy (HBR) 163.00p -3.89%

Impax Environmental Markets (IEM) 311.50p -3.86%

Monks Inv Trust (MNKS) 1,040.00p -3.70%

Allianz Technology Trust (ATT) 317.00p -3.65%