(Reuters) – UK shares fell on Monday after U.S. President Donald Trump signaled that his reciprocal tariffs would cover all countries, intensifying a global trade war.
The blue-chip FTSE 100 fell 1% as of 1011 GMT; the midcap FTSE 250 index dropped 1.9% to a more-than-eleven-month low.
Speaking to reporters late on Sunday, Trump said the tariffs would essentially affect all countries. He is set to announce reciprocal tariffs on Wednesday, followed by auto levies on Thursday, though specifics remain unclear.
British Prime Minister Keir Starmer and Trump discussed “productive negotiations” toward a UK-U.S. economic prosperity deal during a Sunday phone call, according to Downing Street.
Though Trump suggested on Friday he might exempt certain countries from tariffs, weekend reports indicated he was pushing advisers towards more aggressive measures.
On Monday, Bank of England data revealed British mortgage approvals softened in February, with consumer credit growing at a slower pace than the previous month.
Among individual stocks, Associated British Foods dropped 2.7% after the food processing firm said the boss of its Primark clothing business, Paul Marchant, has resigned with immediate effect following an allegation made by an individual about his behaviour towards her in a social environment.
Pets at Home Group fell 11.6% after warning that its fiscal 2026 underlying pretax profit would plunge due to rising costs and weak demand for pet accessories.
Wood Group slumped 29.1% after the oilfield services and engineering firm said it had identified “material weaknesses and failures” in its financial culture within its projects business unit, following an independent review conducted by Deloitte.
On the flip side, Aston Martin rose 9.4% after the carmaker said it would raise over 125 million pounds ($161.9 million) through funding from Chairman Lawrence Stroll’s investment vehicle and the sale of its minority stake in the Formula One team he owns.
($1 = 0.7738 pounds)
(Reporting by Ragini Mathur in Bengaluru; Editing by Sahal Muhammed)
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