Shares slid again on Friday as markets continued to react to the uncertainty surrounding the economic impact of US tariffs.
European markets saw further falls as trading got under way, with both the UK’s FTSE 100 index and France’s Cac 40 down more than 1%. Asian markets had also declined earlier.
The sweeping new tariffs announced by President Donald Trump on Wednesday triggered a slump in global stock markets, with the US S&P 500 having its worst day since the impact of Covid in 2020.
Traders are concerned the tariffs will increase prices and weigh on growth in the US and abroad.
Trump told reporters on Thursday he thought things were going “very well”, adding: “The markets are going to boom.”
But on Friday markets continued to slide, with Germany’s Dax index down more than 1%.
Trump has said the tariffs will boost US economic growth, but some economists have warned of a slowdown in the US and in the global economy.
The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, has said the new tariffs “clearly represent a significant risk to the global outlook at a time of sluggish growth”.
She said the IMF was still looking into the “macroeconomic implications” of the measures and stressed the need to avoid actions that could do more damage to the global economy.
