- Downing Street has acknowledged that the UK is likely to face tariffs from the US this week
- The UK government had been holding out hope for a “UK-US economic prosperity deal” that would protect British exports from the tariffs
- In the US, Goldman Sachs raised its estimated probability of a recession to 35 percent
- The impact extended to Asian markets, where major benchmarks like Tokyo’s Nikkei and Taiwan’s stock exchange saw losses exceeding 4 percent
Downing Street has acknowledged that the UK is likely to face tariffs from the US this week, as Donald Trump’s threats of a global trade war send shockwaves through international markets.
On Monday, financial markets across the UK, Europe, and Asia took a hit after Trump confirmed his plan to impose steep tariffs on imported goods during his self-proclaimed “Liberation Day” on Wednesday. The news has heightened concerns about a looming global recession.
The UK government had been holding out hope for a “UK-US economic prosperity deal” that would protect British exports from the tariffs. However, on Monday, a spokesperson for Prime Minister Sir Keir Starmer admitted that discussions are unlikely to conclude before the tariffs come into effect. When asked about the prospects of securing a deal before Wednesday, the spokesperson declined to set a timeline, indicating talks would likely continue beyond the deadline.
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— DonCorleone77 (@CorleoneDon77) March 31, 2025
Market Update as of 8:00am:
European stock markets are selling off, as are U.S. futures, amid a spike in risk aversion and fears that Trump tariffs will hurt the global economy. Nikkei closed more than -4% overnight, the Hang Seng closed -1.3% lower and…
The uncertainty rattled London’s FTSE 100, which dropped by over 1 percent, losing around 100 points in morning trading. Germany’s Dax and France’s Cac 40 followed suit, both falling more than 1.7 percent.
In the US, Goldman Sachs raised its estimated probability of a recession to 35 percent, up from 20 percent, citing the risk of escalating trade tensions. The financial giant also warned that Europe could face even greater economic challenges, predicting a potential “technical” recession in the region this year.
The impact extended to Asian markets, where major benchmarks like Tokyo’s Nikkei and Taiwan’s stock exchange saw losses exceeding 4 percent. The sharp decline in investor confidence underscores growing fears of a global economic downturn.
As negotiations between the UK and US continue, businesses on both sides of the Atlantic remain on edge, awaiting clarity on how the tariffs will unfold and their broader implications for the world economy.
