Feb 23 (Reuters) - The UK's FTSE 100 was subdued on Monday, as investors assessed a fresh wave of uncertainty over U.S. trade policy, while Johnson Matthey slumped after the chemical firm accepted a
FTSE 100 Stagnates Amid Uncertainty Over US Trade Tariffs
Feb 23 (Reuters) - The UK's FTSE 100 ended flat on Monday as uncertainty over U.S. trade policy largely stymied trade, although Johnson Matthey slumped after the chemical company accepted a cut to the sale price of its catalyst unit to Honeywell.
The blue-chip index ended 0.02% lower after closing at record highs last week. The domestically focused mid-cap FTSE 250 was down 0.9%.
Impact of US Trade Policy on UK Markets
U.S. President Donald Trump at the weekend said he would implement a new 15% tariff on global imports, following the U.S. Supreme Court's decision on Friday to strike down his emergency-based tariffs.
The British government had negotiated a lower reciprocal tariff rate at 10% after reaching a deal with the U.S. last year, but Trump's promise to reimpose higher levies at 15% means businesses may face higher duties.
Sector-Specific Reactions to Tariff News
MONDI AND JOHNSON MATTHEY BOTH FALL
Britain does not expect the new tariffs to impact the "majority" of a UK-U.S. economic deal, Prime Minister Keir Starmer's spokesperson said.
Tariff concerns weighed on packaging and paper group Mondi, which lost 4.3%, while its U.S. peers also fell.
Johnson Matthey slumped 16.4% to the bottom of the mid-cap index, after it agreed to lower the sale price of its catalyst technologies business to Honeywell following the unit's underperformance in fiscal 2025.
Aerospace and Defence Stocks Performance
British aerospace and defence stocks pulled back after touching a record high on Friday.
Rolls-Royce Holdings dipped 0.2% despite a media report that said the engine maker is expected to launch a share buyback worth as much as 1.5 billion pounds ($2 billion) alongside its annual results this week.
Precious-Metal Miners See Gains
Meanwhile, precious-metal miners rose 5.2% to a record high after gold climbed to a three-week high as investors sought safe-haven assets. [GOL/]
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore and Barbara Lewis)
