Tariff Concerns Weigh on British Stocks; Aston Martin Drops
(Reuters) -British equities closed lower on Thursday, with mining stocks leading declines, after U.S. President Donald Trump announced new tariffs on all foreign-made vehicles and auto parts.
Late on Wednesday, Trump announced a 25% tariff on imported cars and light trucks starting next week, widening concerns about the global trade war he kicked off upon returning to the White House this year.
The FTSE 350 automobiles and parts stocks fell 1.4% to their lowest since early January, with luxury carmaker Aston Martin falling 6.7% to an all-time low.
The blue-chip FTSE 100 fell 0.3%, while the midcap FTSE 250 index was down 0.6%.
Finance Minister Rachel Reeves said Britain was working intensely with Washington to secure an exemption from the U.S., the second-biggest importer of British-made cars, on auto tariffs and could review subsidies enjoyed by Elon Musk's Tesla to better support its industry.
Meanwhile, the British pound strengthened against the dollar and the euro, amidst the escalating U.S. tariff tension, which further weighed on the exporter-heavy FTSE 100.
Further, industrial metal miner stocks fell 2.1%, among top sectoral decliners, as copper prices fell on concerns that Trump's auto tariffs could dampen demand for metals. [MET/L]
Anglo American, Glencore, Rio Tinto and Antofagasta were among the top decliners in the FTSE 100, falling between 1.4% and 6%.
On the flip side, Next gained 10.5% after raising its profit forecast for the current year, as the clothing retailer's earnings topped one billion pounds for the first time.
North Sea-focused oil producer Enquest was up 14.7%, its best day in over four years, after reporting an annual profit and declaring its first-ever final dividend of $15 million.
British Airways-owner IAG will consider selling its 20% stake in Air Europa, its CEO told Reuters. The company's shares lost 1.6%.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Anil D'Silva, William Maclean)
