Global stock markets under pressure after Trump's latest tariff blow
The FTSE 100 Index fell 0.6% – down 50.2 points to 9082.7 – in mid-morning trade on Friday, while European markets suffered steeper falls as the Cac 40 in France dropped 1.8% and Germany's Dax was off 1.7%.
It follows big drops on Asian indices overnight after the Hang Seng in China fell 1.1% and Japan's Nikkei 225 was 0.7% down.
Mr Trump has signed an executive order setting new tariffs on a raft of US trading partners, which will take effect on August 7.
Big exporters to the US, such as Taiwan, will be hit with steep new levies.
While the latest tariffs are less harsh some of those announced on his so-called Liberation Day on April 2, it still sees many of US trading partners facing sharp rises.
The pound was also lower on Friday, down 0.5% to 1.314 US dollars and 0.3% lower at 1.153 euro.
Derren Nathan, head of equity research at Hargreaves Lansdown, said: 'Countries playing tariff poker with Donald Trump have had their bluff called with new US import tax rates announced for 92 nations shortly before the August 1 deadline came into play, with rates ranging from 10% to 41%.
'Mexico was the only reprieve of note, earning a 90-day extension to agree a deal.
'China already faces a separate deadline of August 12.'
The declines saw the FTSE 100 drop below the 9,100 level, having hit record highs in recent weeks, but Mr Nathan added this was 'to be expected after climbing 4% in July'.
Joshua Mahony, chief market analyst at Rostro trading group, said markets will be concerned over the impact of the tariffs and whether it will send global inflation soaring.
He said: 'Part of the problem for markets is the question of who will pay for these tariffs, with the best-case scenario being that foreign businesses bear the brunt through lower margins.
'However, that is not entirely the case, with US consumers starting to feel the pinch through higher prices, while earnings from the likes of General Motors, Ford and Apple have highlighted the fact that they are expected to lose billions at the hands of Trump's tariffs.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
28 minutes ago
- Daily Mail
Thousands more Britons will be dragged into paying tax on their hard-earned savings
Millions of Britons will be forced to pay tax on their savings this year as soaring numbers of workers are pulled into higher bands for the first time. Rachel Reeves 's decision to keep tax thresholds frozen means many workers receiving wage rises to help combat the cost-of-living crisis will be dragged into paying more tax. In a double blow for many, higher interest rates will also mean around 3.4million people are expected to receive a bill for interest made on their savings in the current tax year, up from 3.1million five years ago. Critics have urged the Chancellor to address the effects of the tax-threshold freeze – known as 'fiscal drag' – as bills go up without income increasing in real terms. She is also facing mounting pressure to maintain the tax-free amount that savers are allowed to put into cash Isas. The Chancellor is understood to have considered lowering the limit to encourage more people to invest in stocks and shares. Harriet Guevara, chief savings officer at Nottingham Building Society (NBS), which studied the latest HMRC figures, said the data showed a 'hidden tax burden for ordinary savers'. She added: 'At a time when families are trying to build financial resilience amid frozen thresholds and rising living costs, the Government should be doing more to reward and protect savers.' Government rules allow people to earn some interest on their savings without paying tax. A person earning less than £17,570 a year can receive up to £6,000 in savings interest tax-free. Basic-rate taxpayers earning between £17,571 and £50,270 have a savings allowance of £1,000. For higher-rate taxpayers, earning up to £125,140, this falls to £500, while additional rate taxpayers over this level receive no tax-free allowance. The allowances have been frozen for nine years, meaning many more people have been dragged into paying tax on savings interest as their incomes have risen in line with inflation. The system is also considered incredibly complicated, which has resulted in many storing their money in Isas, which have a tax-free allowance of £20,000. Ms Reeves reportedly considered cutting the tax-free allowance on cash Isas to encourage more people to invest in shares and boost the economy. But an announcement on the limit was delayed last month following a backlash from building societies and savers. The NBS assessment came as HMRC data compiled by the online investment platform AJ Bell showed that one in every 25 basic-rate taxpayer will receive a bill for interest on their savings this year compared to less than one in 100 four years ago. While rising interest rates have boosted returns for savers, AJ Bell warns that this has now turned into a 'bounty for the taxman' as HMRC is expected to pocket more than £6billion from savers this year.
Reuters
28 minutes ago
- Reuters
White House to target banks as Trump claims discrimination
WASHINGTON/NEW YORK, Aug 5 (Reuters) - President Donald Trump on Tuesday said he believes that banks, including JPMorgan (JPM.N), opens new tab and Bank of America (BAC.N), opens new tab, discriminate against him and his supporters, as he prepares to act against banks for allegedly dropping customers for political reasons. Trump also said the country's top two lenders had previously rejected his deposits, ramping up his attack on the industry. "They totally discriminate against, I think, me maybe even more, but they discriminate against many conservatives," he told CNBC in an interview. Trump made the comments when asked about a report by the Wall Street Journal that said he planned to punish banks that discriminated against conservatives, but did not address the order specifically. The executive order instructs regulators to review banks for "politicized or unlawful debanking" practices, according to a draft reviewed by Reuters. It is likely to be announced on Wednesday, an industry source said. "They did discriminate," Trump said of actions taken by JPMorgan after his first term in office. "I had hundreds of millions, I had many, many accounts loaded up with cash ... and they told me, 'I'm sorry sir, we can't have you. You have 20 days to get out.'" Trump's latest criticism adds pressure on America's largest lenders. The order would likely require banks to conduct sweeping reviews of their businesses to comply with regulations. Trump said, without providing evidence, that the banks' refusal to take his deposits indicated that the administration of former President Joe Biden had encouraged regulators to "destroy Trump." Trump said he subsequently tried to deposit funds with BofA and was also refused, and eventually split the cash. "I ended up going to small banks all over the place," he said. "I was putting $10 million here, $10 million there, did $5 million, $10 million, $12 million," he said, without naming the lenders. "I have them all over the place, the craziest thing, and it's lucky I even had them. They were doing me a favour, and that's because the banks discriminated against me very badly, and I was very good to the banks." In a statement, JPMorgan did not address the president's specific claims about his account. "We don't close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed," JPMorgan said. "We commend the White House for addressing this issue and look forward to working with them to get this right.' BofA also did not address Trump's specific claims. During Biden's administration, regulators were able to scrutinize banks' decisions on the basis of reputational risks, a second source familiar with the matter said. Lenders were under intense scrutiny and pressure to weigh reputational risks when dealing with Trump because of his legal woes, a third source said. JPMorgan continues to have a banking relationship with members of the Trump family that dates back years, and it also banks a number of campaign accounts linked to Trump, the third source said. After Trump took power, the Federal Reserve announced in June it was directing its supervisors to no longer consider reputational risk when examining banks, a metric that had been a focus of industry complaints. The Wall Street Journal reported late Monday that the expected executive order would instruct regulators to investigate whether any financial institutions breach the Equal Credit Opportunity Act, antitrust laws or consumer financial protection laws by dropping customers for political reasons. The order could authorize monetary penalties, consent decrees or other disciplinary measures against violators, according to the draft. The White House had no immediate comment on the reported order. "What the White House is doing is telling the banks not to hide behind regulations to deny loans or banking relationships," said Wells Fargo bank analyst Mike Mayo. "Banks can use their normal underwriting standards and deny services, but not blame regulators or use reputational risk as a justification." BofA said it welcomed the administration's efforts to clarify the policies. "We've provided detailed proposals and will continue to work with the administration and Congress to improve the regulatory framework," the bank said. Trump in January admonished the CEOs of JPMorgan and BofA for denying services to conservatives. At the time, the two banks denied making banking decisions based on politics. Banks have consistently argued that any complaints about "debanking" should be aimed at regulators, as they argue onerous rules and overzealous bank supervisors can discourage them from engaging in certain activities. "The heart of the problem is regulatory overreach and supervisory discretion," the Bank Policy Institute, an industry group, said in a statement. Lenders have held discussions around debanking and weighed scenarios around a potential order, the first source said. Banks are also hopeful the administration may change anti-money laundering laws that they say are outdated and burdensome, the source added.
Daily Mail
28 minutes ago
- Daily Mail
How to work out if YOU can claim £950 from the car finance scandal - and what to do if you can't find the paperwork
It's the scandal dubbed 'PPI on Wheels', but last week five judges at the Supreme Court dealt a blow to millions of drivers hoping for a payout on their car finance deals. There will be no compensation for customers who were simply unaware commission was being paid when they took out car finance, with the judges declaring this was not enough to count as mis-selling.
