Sterling Surges Amid Global Tariff Tensions

The British pound strengthened against major currencies as global trade tensions heightened following new U.S. tariffs on imported vehicles. Despite UK Finance Minister Rachel Reeves' fiscal update, the impact of auto tariffs was muted in currency markets, affecting auto stocks and car exports, especially to the U.S.

The British pound gained strength against the dollar and euro on Thursday amid increasing global trade tensions. This follows U.S. President Donald Trump's announcement of a 25% tariff on imported vehicles.

The tariff, set to take effect on April 3, is expected to escalate international trade disputes. The pound rose to $1.2922 against the dollar and saw marginal gains against the euro.

Britain, negotiating for a possible exemption, faces potential economic impacts as the U.S. is a significant market for its car exports. In related market reactions, shares of British luxury carmaker Aston Martin plummeted to a record low.

(With inputs from agencies.)