UK Stocks Slide as Tariff Concerns and Weak Demand Weigh Heavily

British stocks closed lower, with the FTSE 100 and FTSE 250 indices falling due to tariff concerns and weak demand. Industrial metal miners and airline stocks particularly suffered. A call between UK Prime Minister Keir Starmer and US President Trump highlighted ongoing tariff negotiations, seeking to avoid economic repercussions.

British stocks experienced a significant downturn on Monday, with the benchmark FTSE 100 index reaching its lowest point in a month as investor caution mounted ahead of President Donald Trump's anticipated tariff plans. The blue-chip index fell by 0.9%, closing a challenging March down by 2.6% despite a strong quarterly performance.

Global markets reacted negatively to Trump's announcement that new reciprocal tariffs, set to be revealed on Wednesday, will extend to all nations, compounding current levies on aluminum, steel, and automobiles. In response, UK Prime Minister Keir Starmer engaged in what he described as 'productive negotiations' with Trump, discussing prospects for a UK-U.S. economic prosperity agreement.

Market sectors, including industrial metal miners and travel, were among the hardest hit, as exemplified by a 3.7% decline in mining stock prices and a slowdown in the aviation industry reported by British airline Virgin Atlantic. Stock declines were further exacerbated by strategic changes within companies, such as Primark's leadership shift and cautious fiscal outlooks in company forecasts.

(With inputs from agencies.)