Last checked at 
(Alliance News) - Stock prices in London closed decidedly lower on Friday, as investors continued to digest US President Donald Trump's new tariffs and were newly rattled after China responded in kind.
Trump ignited a trade war on Wednesday by imposing levies on imports from around the world. The baseline was 10%, but certain trading partners received larger tariffs, including 34% duties against China.
This added to a 20% tariff imposed in March, and China is also under sector-specific tariffs on steel, aluminium and car imports.
China swiftly vowed "countermeasures" to protect its rights and interests, and on Friday said it would slap 34% tariffs on all imports of US goods from April 10. Beijing's Commerce Ministry also imposed export controls on seven rare earth elements, including gadolinium – commonly used in magnetic resonance imaging – and yttrium, which is used in consumer electronics.
Berenberg analysts said the US "is now pursuing exceptionally misguided economic policies...[and] harming its long-term prospects for growth".
"Donald Trump's tariff shock on Wednesday exemplifies these bad policy choices," the analysts continued. "While we had expected Trump to levy serious tariffs on almost all US trading partners, the scale of the additional tariffs, especially on China...and the swift and harsh Chinese response, have gone beyond our previous expectations."
The FTSE 100 index closed down 419.76 points, 5.0%, at 8,054.98. The FTSE 250 ended down 845.16 points, 4.4%, at 18,365.35, and the AIM All-Share closed down 27.13 points, 4.1%, at 640.54
The Cboe UK 100 ended down 4.6% at 803.49, the Cboe UK 250 closed down 4.6% at 16,040.07, and the Cboe Small Companies ended down 2.6% at 14,600.15.
"With markets having suffered their worst week in five years, investors were hiding under their duvet on Friday hoping the pain would go away," AJ Bell's Russ Mould commented that morning. "Unfortunately, the relentless selling continued...There are so many moving parts that getting your head around the situation isn't easy. With countless sectors set to be hit by tariffs, it's difficult to know where to begin to comprehend the situation."
He continued: "Tariffs add complexity to an already tricky situation for the UK. From Sunday, companies are likely to push up prices to offset extra employment-related costs...While firms will be acutely aware that consumers are already under enough financial pressure, most won't be prepared to stomach lower profit margins so these costs will be passed on as much as possible. Sadly, job cuts also look inevitable."
However, AJ Bell also noted that some FTSE 100 companies will be able to circumvent the levies by building more products in the US, with 20 constituents already operating more than 20% of their facilities there.
Also, some FTSE 350 stocks have delivered positive returns over the last two days, Mould said. "It's all about having defensive characteristics, such as providing an essential service that consumers or businesses need week in, week out."
For example, he noted that Currys had, as of Friday afternoon, gained 11% since Trump's 'Liberation Day' speech, while United Utilities was up 6.6% and Severn Trent up 6.5%.
Over Friday alone, Currys lost 2.2%, United Utilities lost 1.6%, and Severn Trent lost 2.9%.
Among large caps, JD Sports - due to release a trading update on Wednesday - was the biggest winner, gaining 2.9%. Rolls-Royce was the FTSE 100's worst performer, down 12%.
On the FTSE 250, Hilton Food - another post-Wednesday winner mentioned by Mould - was the best performer, rising 2.4%. Down the other end, housebuilder Vistry fell 13%.
Among smaller caps, Shuka Minerals jumped 25%.
The Africa-focused mine operator and developer said the availability period for the entire GBP2.0 million in convertible note instruments has been extended to March 31, 2026. The redemption date has been extended by 12 months to March 31, 2027.
Minoan Group plummeted 69%.
The company, which is developing a tourism project in Greece, said it would be unable to finalise its annual results by the April 30 deadline due to "insufficient funds".
Minoan said it was unable to secure a further extension to its loan with DAGG LLP, which currently stands at around GBP1.2 million and has been accruing default interest since January 1 at 12% per annum.
In European equities on Friday, the CAC 40 in Paris ended down 3.7%, while the DAX 40 in Frankfurt ended down 4.4%.
The pound was quoted lower at USD1.2931 at the London equities close Friday, compared to USD1.3114 at the close on Thursday.
The euro stood at USD1.0994 at the European equities close Friday, lower against USD1.1047 at the same time on Thursday.
Against the yen, the dollar was trading lower at JPY145.80 compared to JPY146.11 late Thursday.
Stocks in New York were lower at the London equities close, with the DJIA down 3.7%, the S&P 500 index down 4.3%, and the Nasdaq Composite also down 4.3%.
Berenberg said "downside pressures" on US growth are intensifying, commenting: "Based on Wednesday's reciprocal tariff announcement, a sharp drawdown in the equity market...and persistent levels of elevated uncertainty that hinders businesses' investment and employment plans, we reduce our real GDP growth calls to 1.7% from 2.3% for 2025 and to 1.6% from 2.0% for 2026.
"Due to higher tariffs and elevated near-term inflation expectations, we see US inflation (as measured by the core PCE) reaching 3.0% in 2025 (our previous forecast was 2.7%)."
Brent oil was quoted at USD65.38 a barrel at the London equities close Friday, down from USD69.80 late Thursday.
Gold was quoted lower at USD3,025.91 an ounce at the London equities close Friday against USD3,109.85 at the close on Thursday, having reached a record high of USD3,167.69 late on Wednesday.
In Monday's UK corporate calendar, Ferrexpo releases a trading statement.
The economic calendar for Monday has trade balance and industrial production data from Germany, as well as eurozone retail sales.
By Emma Curzon, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2025 Alliance News Ltd. All Rights Reserved.
