London pre-open: Stocks to slide after Trump tariff announcement
By Michele Maatouk
Date: Thursday 03 Apr 2025
(Sharecast News) - London stocks were set to slide at the open on Thursday after Donald Trump announced a range of tariffs on countries around the world, including the UK.
The FTSE 100 was called to open around 1.6% lower.
Holding up a large chart detailing the affected countries at a press conference in the White House, the US president announced a new 10% baseline tariffs on all goods imported into the US.
But there was also a range of higher rates for countries that the Trump administration believes have high trade barriers to US imports.
The European Union will be hit with a 20% tariff on top of the 10% baseline. Trump called the bloc "tough traders" who "rip us off. It's so sad to see. It's pathetic".
Japan and South Korea, countries with traditionally good relationships with the US, were hit with reciprocal rates of 24% and 25% respectively.
Vietnam was hit with a 46% rate, India with 26% and Thailand with 36%.
China's rate was 34%, which Treasury secretary Scott Bessent said extended to 54% when combined with an earlier 20% rate announced in February. A separate rate of 32% was imposed on Taiwan.
The UK, Brazil and Singapore escaped higher reciprocal taxes, but still got the 10% baseline.
One of the few countries to avoid tariffs entirely was Russia.
The UK said it remained committed to negotiating an economic deal with the US.
Chris Beauchamp, chief market analyst at IG, said: "Investors and businesses are waking up to a new world this morning after Trump's tariff announcement. The US president seems determined to roll back the era of globalisation, though it seems more likely he is just going to trim its effects on the United States.
"Investors have voted with their feet and have resumed the selling of US stocks despite a small overnight bounce. The world is echoing to the sound of earnings estimates being frantically revised, and this portends a further leg down for US stocks."
In corporate news, electrical retailer Currys lifted annual earnings guidance after "robust" trading since the start of the year.
Group adjusted profit before tax is now expected to be around £160m, compared to previous guidance of £145m to £155m, Currys said.
Real estate investment group Primary Health Properties has made a £1.5bn takeover proposal for Assura, the developer and manager of GP and primary care buildings.
Under the cash and shares proposal, Assura shareholders will receive 0.3848 new PHP shares and 9.08p in cash, implying a value of 46.2p per Assura share - a 23.5% premium to its closing share price on the day before the offer period commenced.
Workspace Group announced the appointment of Jessica Berney as its head of portfolio management and a member of the executive committee, effective 1 July.
She is joining from Schroders Capital, where she spent 13 years as fund manager for UK strategic partnerships. Berney also previously held a senior role at Invista Real Estate, managing multiple funds and retail sector investments.
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