UK Stocks Surge Amid Temporary Tariff Exemptions on Tech Goods

UK stocks experienced a rise as President Trump exempted smartphones and computers from high Chinese tariffs, bringing market stability. The FTSE 100 and midcap index both rose, with banks and tech sectors leading. However, Trump announced these exemptions are temporary, sparking future tariff speculation.

UK shares saw a notable rise on Monday, driven by broad-based gains, after U.S. President Donald Trump announced temporary exemptions for smartphones and computers from steep Chinese tariffs. This decision offered a breath of relief to investors following a period of fluctuating markets.

The FTSE 100 index climbed by 2%, while the midcap index rose 2.5% after the White House revealed on Friday that the tariff exemptions would cover 20 categories, accounting for 23% of U.S. imports from China, including crucial tech components.

However, the respite appears temporary as Trump declared on Sunday that new tariffs on semiconductors and potentially smartphones are on the horizon. This ongoing ambiguity continues to unsettle global markets, which have seen significant downturns in recent months.

(With inputs from agencies.)