Islamabad/London, April 10: The FTSE 100 experienced a significant surge this morning following President Trump’s reversal, with green across the board.
Barclays emerged as the biggest winner, jumping by 30% at the opening, though it has since settled down to a 14% increase.
JD Sports and Rolls Royce saw gains of 11% and 10%, respectively. However, UK supermarkets faced a tough day. Tesco’s shares dropped 6% following a mention of a price war, while its competitors, Sainsbury’s and Marks & Spencer, saw declines of 4.8% and 2.6%, respectively.
In global news, China has responded sharply to the US’s recent trade moves. The Chinese Foreign Ministry spokesperson Lin Jian criticized the US for acting out of “selfish interests” by using tariffs as a weapon to exert pressure and gain advantages.
He stated that the US is undermining the global rules-based trade system and destabilizing the economic order, predicting the failure of such tactics.
Lin emphasized that China will continue to stand firm against these actions to protect its people’s interests.
In the UK, Home Secretary Yvette Cooper responded to questions regarding the US’s reliability as a trading partner.
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She argued that the last 24 hours reinforce the need for the UK to stay focused on supporting British industries and attracting investment, pointing to the announcement of the Bedfordshire Universal Studios theme park as a positive example.
US-China Trade War
Meanwhile, the ongoing trade war between the US and China has reached new heights. What was initially framed as a historic confrontation has narrowed in on China as the key target.
US President Trump has paused the “reciprocal” tariffs on all countries except China, but Beijing quickly retaliated with its own measures.
The situation escalated rapidly, with Trump’s tariffs jumping from 54% to 125%, and China’s retaliation raising duties on US imports to 84%.
This escalating confrontation has the potential to drastically reshape the global trading landscape.
Experts suggest that it signals a deeper decoupling between the two largest economies, which could have far-reaching consequences for both countries and the global economy.
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Trump’s decision not to grant China the same tariff reprieve as other nations appears to have intensified tensions, with Beijing showing no willingness to yield to what it describes as US “unilateral bullying.”
Chinese leader Xi Jinping, who has long prepared for such a confrontation, is determined not to capitulate.
Analysts believe that China is prepared for a prolonged struggle and is using the trade conflict to strengthen its position on the global stage.
