UK stocks fell sharply again on Wednesday morning as Donald Trump’s worldwide tariffs came into effect.
The import taxes announced by the US President last week, including a 10% charge on UK goods and a new 104% rate on some Chinese imports, took effect from midnight Washington time – just after 5am in the UK.
In London, the FTSE 100 fell 2.34% shortly after opening, wiping out most of the gains made on Tuesday, following another drop in some Asian stock markets overnight.
Amid the ongoing market turmoil and uncertainty about global trading relations, Chancellor Rachel Reeves has said the UK is “accelerating trade deals with the rest of the world” as she prepares to meet her Indian counterpart.
Ms Reeves will meet Nirmala Sitharaman alongside Trade Secretary Jonathan Reynolds later on Wednesday for talks aimed at securing a deal with India.
The UK has been through more than a dozen rounds of talks since 2022 over a potential agreement with India, which is forecast to become the world’s third largest economy.
Key sticking points were said to include visa rules for Indian students and professionals, as well as access for British service firms.
Meanwhile, ministers still hope an economic agreement with Washington can be reached to soften the blow of the 10% tariff Mr Trump imposed on UK goods, as well as the 25% import tax on cars and separate ones for steel and aluminium.
But the Government will also seek to strengthen trade ties with other countries, including by trying to rebuild ties with the European Union.
The Chancellor said: “In a changing world, this Government is accelerating trade deals with the rest of the world to back British business and provide the security working people deserve.
“We are going further, faster to create the best possible conditions for British business by working to reduce barriers to trade.”
Discussions with India will focus on areas such as defence and jobs creation, investment and trade opportunities, she said.
