British Stocks Tumble Amid Tariff Fears and Economic Uncertainty

British stocks declined on Monday, marking a one-month low as fear of new U.S. tariffs loomed. The FTSE 100 fell 0.9%, while midcap index dropped nearly 2%. Discussions between U.K. and U.S. leaders suggested hope for a tariff negotiation, but various sectors still felt the economic tremors.

British stocks closed sharply lower on Monday, striking a one-month low, as market fears of new U.S. tariffs under President Donald Trump cast a shadow over investor sentiment.

The flagship FTSE 100 index declined by 0.9%, reversing gains made in February but ultimately enjoying a 5% quarterly rise, indicating a shift from U.S. equities. Meanwhile, the midcap FTSE 250 index plunged nearly 2%, touching a 12-month nadir.

Concerns intensified after Trump revealed plans for broader tariffs on all countries, compounding existing ones on aluminium, steel, and automobiles. The U.K. hopes for concessions, as Prime Minister Keir Starmer expressed in a call with Trump about an economic prosperity deal. Despite these diplomatic efforts, the industrial and airline sectors were notably hit.

(With inputs from agencies.)