London market drops as Trump tariffs come into effect [Video]

The London market dropped sharply after heavy overnight falls on Wall Street after US President Donald Trump moved forward with planned tariffs against Canada and Mexico and doubled the levy on Chinese imports.

The FTSE 100 Index retreated from record highs notched up on Monday to drop more than 60 points at one stage after opening, later standing around 0.5% down at 8823.

Falls were also seen across Europe, with the Dax in Germany sinking 1.7%, while the Cac 40 in France was 1% down.

After initially pausing the tariffs, Mr Trump said that starting just past midnight local time, imports from Canada and Mexico would now be taxed at 25%, with Canadian energy products receiving 10% tariffs.

In addition, the 10% tariff that Mr Trump placed on Chinese imports in February is doubling to 20%.

The move – which was followed swiftly by retaliatory action from Canada and China – sent US …