FX.co ★ UK Shares Pull Back Over 2%

On Wednesday, the FTSE 100 decreased by over 2%, continuing its downward trend as President Trump's extensive tariffs came into effect. These new measures, which affect approximately 60 countries with trade surpluses with the United States, involve increasing import taxes on certain Chinese products to as much as 104%. This has heightened concerns about a potential global economic slowdown. The losses were mainly driven by cyclical industries such as mining and finance, while pharmaceutical stocks also contributed to the index's decline following Trump's announcement of imminent “major” tariffs on the drug industry. AstraZeneca experienced a drop of over 4%, and GlaxoSmithKline (GSK) fell by 3%. Meanwhile, Deputy Governor Clare Lombardelli of the Bank of England cautioned that the tariffs might hinder economic growth in the UK, with the effects on inflation still being indeterminate.