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By DAVID WILCOCK, DEPUTY POLITICAL EDITOR FOR MAILONLINE Published: 08:23 BST, 10 April 2025 | Updated: 08:27 BST, 10 April 2025
The UK’s FTSE 100 soared by more than 6 per cent as stock markets opened in London, after Donald Trump blinked and paused the US tariff offensive.The index was gaining about 475 points in early trading on Thursday, following a significant rally for markets in the US and Asia.The sharp gains come after the US president announced he would be pausing tariffs on most countries, excluding China, for 90 days.In a major climbdown in Washington last night Trump said a blizzard of ‘reciprocal’ tariffs on countries worldwide would be put on hold to allow time for trade talks. He acknowledged that market turmoil had played a part in his decision to back down, telling reporters: ‘People were getting a little bit yippy, a little bit out of line.’He insisted all countries, including China, would eventually agree ‘fair’ trade deals and put the US on a ‘transition to greatness’, but warned: ‘Nothing’s over yet.’The climbdown came after bond-market investors began an unprecedented sell-off of US government debt, driving up borrowing rates for the Trump administration. Britain was also hit by the fallout, with the UK Government’s borrowing costs hitting their highest since 1998, raising the prospect of more tax rises and spending cuts. The sharp gains come after the US president announced he would be pausing tariffs on most countries, excluding China, for 90 days. The climbdown came after bond-market investors began an unprecedented sell-off of US government debt, driving up borrowing rates for the Trump administration.Yvette Cooper has acknowledged there is ‘quite a lot of global instability’, but said the Government would be ‘really steady’ in its approach following Donald Trump’s changes to his tariff policy.The Home Secretary told Sky News: ‘We are seeing changes all the time. We are seeing quite a lot of global instability.’We are seeing that in the economy, we are seeing it also on security, on defence issues.’But I think that just comes back to the approach that we have taken – it’s the plan for change the Prime Minister’s set out, maintaining that stability in the face of the different turbulences.’We are not keeping a running commentary on different trade negotiations, on the different approaches that other governments are taking.’What we are doing is just being really steady about this. We have made clear our principles and our approach. We want to see a reduction of trade barriers and we want to negotiate good arrangements that are in the UK’s interests.’
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FTSE opens up 6% as markets surge after Donald Trump blinks first and orders a 90-day tariff pause – but US trade war with China deepens
