London stocks slip after Trump issues tariff warning
London stocks fell on Monday after U.S. President Donald Trump warned he would impose new tariffs on several European nations unless the United States was allowed to purchase Greenland, unsettling markets and weighing on recent trade deals.
The FTSE 100 declined 0.6% by late morning, while the mid-cap FTSE 250 dropped 0.9%, heading for its worst session since late November. Losses were broad across sectors, with banking and healthcare stocks dragging the most. Luxury brands Burberry and Watches of Switzerland also slipped, News.Az reports, citing Reuters.
The tariff threat targets Britain, Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland, starting with a 10% levy on February 1 and rising to 25% on June 1 if no agreement is reached. Major EU states condemned the move, while France floated economic countermeasures.
British Prime Minister Keir Starmer called for calm negotiations, as the dispute cast doubt over recent U.S. trade deals with the UK and EU that have already drawn criticism for favoring Washington.
Some sectors bucked the broader declines, with precious metals miners rising as gold and silver hit record highs. Aerospace and defense stocks also edged higher.
WH Smith shares jumped 9% after naming former Balfour Beatty chief Leo Quinn as executive chair in a leadership shakeup aimed at restoring investor confidence.
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