Stock markets tumble as Trump tariffs loom

Values have tumbled globally as hopes of another delay or a solution fade. The FTSE 250 index slipped to a low not seen in nearly a year.

Sarah Taaffe-Maguire

Business and economics reporter

Monday 31 March 2025 19:46, UK

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Stock markets have plummeted as the 2 April implementation day of US tariffs ticks closer.

Benchmark stocks in Asia were rattled at the lack of progress in halting US President Donald Trump's taxes which are due to come into force on US imports from Wednesday.

After delays, 25% tariffs are to be levied on all cars entering the US on what Mr Trump has called "liberation day".

Trade barriers are also expected to be announced on countries deemed to be giving the US a bad deal on trade.

In Japan, the Nikkei stock index lost nearly 4% at points before closing 3.86% down, while Korea's Kospi index dropped 2.83%.

European markets followed suit with the UK's FTSE 100 list of most valuable London Stock Exchange companies down 1% at the open, falling to a more than two-week low.

The larger FTSE 250, which contains more companies focused on the UK, fell 1.55%, dipping to a level last seen in nearly a year. It closed almost 2% down.

Germany's Dax, France's CAC 40 and the European-wide Stoxx all shed more than 1% by the close while the FTSE 100 was just shy of 0.9% lower.

The tech-focused Nasdaq was down by almost 2% when Wall Street opened but later erased many of those losses.

Concerns of a worsening trade war are rising - adding taxes to all goods entering the US would force manufacturers to increase their prices to pay the tariffs, raising the price for American consumers and making the products less competitive.

The UK government has been trying to negotiate an exemption with the US government to prevent UK exports from being hit by the tariffs but has so far been unsuccessful.