Latest impact on UK markets revealed amid fears Trump tariffs will spark all-out trade war – live updates

Published on: April 8, 2025

By JAMIE BULLEN

Updated: 08:28 BST, 8 April 2025

The UK market has opened higher this morning despite the looming threat of an all-out trade war between the US and China over Donald Trump’s tariffs.

London’s FTSE 100 has risen in the first few minutes of trading on Tuesday, as a sense of optimism returned to the financial markets after several days of heavy losses.

Trump has threatened China with an extra 50% tariff on goods imported into the America if Beijing does not withdraw its plans to retaliate.

But China’s Commerce Ministry said any further levies would trigger ‘countermeasures’ as it accused the Trump administration of blackmail and added China would ‘fight to the end’.

Live updates below

Are China and US heading for a trade war? What happened yesterday

TOPSHOT - People are seen on The Bund promenade along the Huangpu River in Shanghai, on April 8, 2025, with the city's financial district is seen in the background. Shares in Hong Kong rose at the open on April 8, clawing back some of the massive losses suffered the day before after China retaliated against US tariffs, though Shanghai dropped further. (Photo by Hector RETAMAL / AFP) (Photo by HECTOR RETAMAL/AFP via Getty Images)

Donald Trump threatened to impose an additional 50% tariff on Chinese goods from Wednesday unless China withdrew the 34% retaliatory tariff announced by Beijing last week.

The US President had already imposed a 20% tariff on China before it was increased by a further 34% on his so-called Liberation Day last Wednesday – meaning the total tariff could reach 104%.

But China’s Commerce Ministry said it would respond with extra “countermeasures” targeting American goods if Trump followed through on his threat.

Accusing the Trump administration of blackmail, it said in a written statement that “if the US insists on this way, China will fight it to the end’.

Asian markets bounce after Monday’s slump

A man walks past an electronic board displaying stock prices at the Indonesia Stock Exchange, in Jakarta, Indonesia, Tuesday, April 8, 2025. (AP Photo/Achmad Ibrahim)

Some stock markets across Asia and the Pacific made gains this morning when trading opened following a dramatic slump yesterday.

However, they were still down in mainland China, Taiwan, and Singapore.

Let’s take a look at how Asia-Pacific major stock markets opened this morning:

Shanghai Composite (China) -0.2%
Nikkei 225 (Japan) +6.6%
Hang Seng (Hong Kong) +1.7%
Kospi (South Korea) +1.5%
ASX 200 (Australia) +1.5%
STI (Singapore) -2.2%
TWI (Taiwan) -3.8%

UK markets open as Trump’s tariff continue to cause turmoil

Good morning and welcome to MailOnline’s live coverage as Donald Trump’s tariff continue to cause economic turmoil across the world.

London’s FTSE 100 has risen in the first few minutes of trading on Tuesday, as a sense of optimism returned to the financial markets after several days of heavy losses.

The index, which tracks the UK’s top 100 listed companies, was up more than 1% shortly after markets opened on Tuesday.

All other indexes on the London Stock Exchange were also in the green.

It follows a more positive session for Asian markets, with some indexes making gains after suffering from steep falls in previous days.

Stick with us as we bring you the latest updates throughout the day