Stocks will fall after the implementation of Trump’s new tariffs

Good morning and welcome back to AM City live blog.

It may be a new year, but the same problems control global markets.

The FTSE 100 closed last week one per cent higher than its initial price of 10,235.29p. But this came about 24 hours before President Donald Trump’s new tariff attack on the UK and other European countries.

In a bombshell Truth Social post, Trump said the UK, along with Denmark, Norway, Sweden, France, the Netherlands, Finland and Germany would be subject to new tariffs of 10 percent for their efforts to defend Greenland’s sovereignty.

The president said the tariffs would come into effect on February 1 and increase to 25 percent from June 1, 2026. He added that the tariffs would remain in effect until “an agreement is reached for the complete purchase of Greenland”.

Trump has framed his desire for Greenland as national security with the White House promising to take over the island the “easy way” or the “hard way”.

The reintroduction of tariffs into the geopolitical landscape is reminiscent of last April when markets were in a tailspin due to Trump’s ‘Deliverance Day’.

The FTSE 100 sank more than 11 per cent in the space of a week amid market carnage to a low of 7679.48p.

But after Trump rolled back the policy, the trade term TACO – ‘Trump Always Chickens Out’ – was quickly adopted, prompting a backlash as markets predicted the policy was just part of the President’s ‘Art of the Deal’.

London’s blue-chip index may be on the rise after hitting 10,000, but could ‘Liberation Day 2.0’ threaten global market stability once again – or will this be another case of TACO trading?

We’ll bring you the top news and analysis as we get it.

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