FTSE 100 Faces Turmoil After Trump's Tariff Shockwaves as Markets Suffer
The financial world felt a chilling jolt on April 3, 2025, as President Donald Trump's sudden tariff dictate caused chaos in global markets. The FTSE 100 took a hefty hit, suffering its worst single-day slump since the infamous descent of March 2020 during the COVID-19 pandemic. The index nosedived by 4.95%, closing at 8,054.98 points, a stark reminder of the fragile state of trade relations worldwide.
The abrupt tariff changes unveiled by Trump have triggered a wave of concern among investors and businesses alike. Major financial institutions such as Standard Chartered and HSBC felt the squeeze with stock declines of 12.8% and 8.6% respectively. Their substantial engagements with the Asian market, which faces the brunt of new U.S. import taxes, placed them in the eye of the storm.
Meanwhile, energy titans Shell and BP didn't escape the downturn, as ensnared oil prices added fuel to the fire, leading to another setback for already struggling oil sectors. On the retail front, giants like JD Sports Fashion were caught in the crosshairs. An 8.1% decline reflected concerns that tariffs could inflate costs for Nike products sourced from Asia and hit American consumers hard.
Interestingly, not all sectors faltered under the pressure. Defensive stocks became sanctuaries for wary investors. Utilities like SSE and National Grid saw gains of around 4%, a testament to their stable demand during turbulent times. Even supermarkets such as Tesco and J Sainsbury showed upward ticks due to their focus on domestic consumption and unyielding demand.
Clothing retailer Next emerged as a beacon of strength amid the chaos, reporting an impressive £1 billion pre-tax profit in FY25 and raising expectations for 2026, showcasing resilience against the odds in a challenging retail environment.
The global trade landscape became even more precarious as China retaliated with a beefy 34% tariff on U.S. imports, signaling a deepening trade war. The changes didn’t stop there, with the U.S. removing the 'de minimis' duty exemption, hitting low-value Chinese imports like Shein and Temu with 30% duties, compelling fast-fashion retailers to recalculate their strategies.
The situation caught the attention of high-profile figures. Business magnate Richard Branson didn’t hold back, expressing that Trump's policies risk making everyone poorer globally. Meanwhile, former UK Prime Minister Tony Blair suggested caution against retaliatory measures, advising current leader Keir Starmer to tread carefully.
As analysts declare the bull market officially over, attributing the chaotic conditions to 'ideologues and self-inflicted wounds,' the financial world braces for a ripple effect emanating from these tariff tensions. With markets reeling and businesses in a state of uncertainty, many wonder: How much longer will this rollercoaster ride last?