Global stock markets under pressure after Trump's latest tariff blow
London's FTSE 100 Index fell 0.6 per cent in mid-morning trade on Friday, while other European markets suffered steeper falls as the Cac 40 in France dropped 1.8 per cent and Germany's Dax was off 1.7 per cent.
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It follows big drops on Asian indices overnight after the Hang Seng in China fell 1.1 per cent and Japan's Nikkei 225 was 0.7 per cent down.
Mr Trump has signed an executive order setting new tariffs on a raft of US trading partners, which will take effect on August 7th.
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 2nd, it still sees many of US trading partners facing sharp rises.
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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 1st deadline came into play, with rates ranging from 10 per cent to 41 per cent.
'Mexico was the only reprieve of note, earning a 90-day extension to agree a deal.
'China already faces a separate deadline of August 12th.'
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Trump signs order imposing new tariffs on a number...
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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.
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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.'
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