Published by Global Banking & Finance Review®
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Add as preferred source on GoogleLondon stocks fell as Trump threatened tariffs on Europe, affecting trade deals and market stability. FTSE 100 dropped 0.6%, with broad-based losses.
Jan 19 (Reuters) - London shares fell on Monday as U.S. President Donald Trump's tariff threats against Britain and seven other European nations sent shockwaves through global markets, though a bright spot emerged as insurer Beazley surged to a record high on a sweetened takeover bid from Zurich Insurance.
The blue-chip FTSE 100 finished 0.4% lower. The domestically focused mid-cap index fell 0.9%, marking its steepest one-day decline since late November.
Trump said on Saturday he would impose an additional 10% tariff on goods from Denmark, Norway, Sweden, France, Germany, the Netherlands, Finland and Britain starting February 1. Those tariffs would climb to 25% by June 1 unless the U.S. was allowed to buy Greenland.
The announcement unsettled global markets, with volatility returning to trading floors.
Major EU states condemned the tariff threats as blackmail, and France proposed responding with a range of previously untested economic countermeasures.
British Prime Minister Keir Starmer, meanwhile, called for calm discussions to resolve the stand-off.
The tariff threats also cast a shadow over trade deals the U.S. struck with Britain in May and the EU in July. Both limited agreements have already drawn criticism for their lopsided nature, favouring Washington.
Losses rippled across London's stock market, with automobiles and parts subindex sliding 1.8% lower.
Luxury retailers too bore the brunt, with Burberry and Watches of Switzerland Group leading the losses with falls of 2.8% and 2.3%, respectively.
However, the non-life insurance sector provided a bright spot, cushioning the FTSE 100 from broader investor nerves. Beazley soared 42.9% to a record high after Zurich Insurance Group offered 1,280 pence per share for the British speciality insurer.
Peers Hiscox and Lancashire also rose 9.1% and 4%, respectively.
Moreover, precious-metal miners surged 3.1% as gold and silver hit record highs amid a flight to safety.
Among other movers, WH Smith jumped 11% after the travel retailer named ex-Balfour Beatty chief Leo Quinn as executive chair, replacing Annette Court in a leadership shake-up aimed at reviving the business and restoring investor confidence.
(Reporting by Ragini Mathur in Bengaluru; Editing by Harikrishnan Nair, Aidan Lewis)
The FTSE 100 is a stock market index that represents the 100 largest companies listed on the London Stock Exchange, reflecting the overall performance of the UK stock market.
Market volatility refers to the rate at which the price of securities increases or decreases for a given set of returns, indicating the level of risk in the market.
Blue-chip stocks are shares in large, well-established, and financially sound companies that have a history of reliable performance and stable earnings.
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