Finance
Tariff Fears Drag FTSE 100 to More Than One-Month Low
Published by Global Banking & Finance Review®
Posted on March 10, 2025
2 min readLast updated: March 1, 2026
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FTSE 100 drops to a one-month low as tariff fears and global equity selloff raise concerns about economic growth and potential U.S. recession.
Tariff fears drag FTSE 100 to more than one-month low
(Reuters) -The British benchmark index fell to a near five-week low on Monday, tracking a global equity selloff as worries about economic growth and uncertainties around U.S. tariffs continued to keep investors on edge.
The blue-chip FTSE 100 fell 0.9%, its fifth straight session of declines, and closed at its lowest since February 4.
The midcap FTSE 250 lost 1.3%, notching its lowest close since January.
Investors remained concerned about an escalating global trade war, after U.S. President Donald Trump declined to predict whether the world's largest economy could face a recession due to tariffs imposed on Mexico, Canada and China over fentanyl.
"Unease about the effect of Trump's tariffs hangs over financial markets at the start of the week," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
"The prospect of a recession in the U.S. is lurking, with consumer confidence falling, companies facing increasing trade complexity and investors turning more nervous."
Global equities fell, with the tech-heavy Nasdaq dropping to a near six-month low, on fears that a tit-for-tat tariff war could spark a slowdown in the world's largest economy.[MKTS/GLOB]
Defence stocks, which have benefited from higher defence spending prospects, continued to give up their gains to fall about 4.5% and lead sector declines.
Clarkson slumped 20.3%, after the shipping services company flagged the impact of geopolitical uncertainty on its near-term outlook.
Assura jumped 14.3% after the British healthcare real estate investment trust said it would consider a 1.61 billion pound ($2.1 billion) offer from U.S. private equity group KKR and Stonepeak Partners.
Shares of Deliveroo rose 0.8% after the meal delivery company said it would exit its Hong Kong operations and sell some assets to Delivery Hero's foodpanda.
Meanwhile, a survey showed that Britain's jobs market cooled in February, with slower hiring and the smallest rise in starting salaries in four years.
(Reporting by Sanchayaita Roy in Bengaluru; Editing by Anil D'Silva)
Key Takeaways
- •FTSE 100 fell to a near five-week low amid global equity selloff.
- •Concerns over U.S. tariffs impact economic growth fears.
- •Recession fears in the U.S. due to trade complexities.
- •Defence stocks lead sector declines, falling about 4.5%.
- •Assura considers a £1.61 billion offer from KKR and Stonepeak.
Frequently Asked Questions about Tariff fears drag FTSE 100 to more than one-month low
1What caused the FTSE 100 to decline?
The FTSE 100 fell due to worries about economic growth and uncertainties surrounding U.S. tariffs, marking its fifth consecutive session of declines.
2How did the midcap FTSE 250 perform?
The midcap FTSE 250 lost 1.3%, closing at its lowest since January, reflecting similar concerns affecting the broader market.
3What impact do tariffs have on investor sentiment?
Investors are increasingly nervous about the potential for a recession in the U.S. due to tariffs, which is contributing to a decline in consumer confidence and market performance.
4Which sectors were most affected by the market decline?
Defence stocks led the sector declines, falling about 4.5%, while other sectors also faced pressure amid escalating trade war fears.
5What recent trends were observed in the UK's job market?
A survey indicated that Britain's jobs market cooled in February, with slower hiring and the smallest rise in starting salaries in four years.
