Market Jitters: U.S. Tariffs Rattle British Equities

British equities dipped, led by mining stocks, following U.S. President Trump's announcement of auto tariffs. The FTSE 350 fell, with Aston Martin at its lowest. British officials negotiate exemptions, while industrial stocks decline amid tariff tensions. Notably, Next and Enquest experienced gains despite market volatility.

British equities experienced a decline on Thursday, influenced predominantly by the downturn in mining stocks. This follows the announcement by U.S. President Donald Trump of new tariffs imposed on all foreign-made vehicles and auto parts.

The market reaction was swift, with the FTSE 350 automobiles and parts stocks dropping 1.4% to a new low. Luxury carmaker Aston Martin was particularly hard hit, with shares falling 6.7%, reaching an all-time low. Finance Minister Rachel Reeves stated that Britain is negotiating with Washington for an exemption from these tariffs, which threaten the second-largest market for British-made cars.

In line with the tariff announcement, industrial metal miners were among the biggest losers on the FTSE 100, as copper prices fell. However, not all was negative, as Next and Enquest saw significant gains due to positive earnings and strategic announcements, offering a bright spot in an otherwise turbulent trading day.

(With inputs from agencies.)