British Equities Plummet Amid Escalating Trade War Tensions

British stocks fell sharply due to U.S. tariffs, affecting healthcare and energy sectors. Tariffs strained global trade and economy. Healthcare companies and oil prices dropped, while gold prices rose. The UK economy faces heightened risks, prompting expected Bank of England rate cuts.

British stocks suffered a significant downturn on Wednesday, primarily driven by declines in the healthcare and energy sectors. The dip was exacerbated by the enactment of U.S. tariffs, which dimmed hopes for concessions from President Donald Trump and intensified concerns about potential global economic repercussions.

By 1025 GMT, the blue-chip FTSE 100 index had fallen by 2.8%, while the midcap index saw a 2.7% slide. President Trump's broad tariff measures, including a sweeping 104% duty on Chinese goods, disrupted the longstanding global trading system and escalated economic uncertainty.

Although the UK has the lowest import duty rate of 10%, the Bank of England has raised alarms about increased global economic risks, with the UK being especially vulnerable due to its open economy and substantial financial sector. As a result, healthcare stocks, particularly AstraZeneca, GSK, and Hikma Pharmaceuticals, saw steep declines, coupled with a dramatic 3.2% drop in the energy index due to a continued downturn in oil prices.

(With inputs from agencies.)