How global markets including the FTSE tumbled over fears of a trade war after Donald Trump imposed huge tariffs on Canada, Mexico and China [Video]

19:46 EST 03 Feb 2025, updated 19:53 EST 03 Feb 2025

Global markets tumbled yesterday over fears of a trade war after Donald Trump imposed huge tariffs on Mexico, Canada and China.

But the pound rallied against the euro – driven by hopes that while the European Union may be next in Mr Trump’s sights, Brexit Britain could be spared.

It followed the US president saying the EU’s behaviour was an ‘atrocity’ and that while the UK was ‘out of line… that one can be worked out’.

After Mr Trump’s comments, referencing trade deficits, the FTSE 100 group of top companies at one point slid by as much as 1.8 per cent, or 154 points, wiping £38billion off its value. Stocks in the US, Europe and Asia were also sharply down.

The turbulence erupted after Mr Trump announced tariffs of 25 per cent on imports from America’s neighbours Mexico and Canada over the weekend, as well as a 10 …