FTSE 100 rises as Trump puts a 90 day pause on US tariffs

The London Stock Exchange rose by 4% after the US President Donald Trump reversed many of his tariffs for 90 days.

President Trump has suggested the 90 days could be used to strike deals over claims by the White House some 75 countries have been pleading to hold talks over the levies.

The French Cac 40 was up 5.42%, Germany’s Dax 40 has risen by 5.71%, the Spanish IBEX 35 rose 5.49%.

The pan-European STOXX 600 increased 5.9% after losing 12.5% since Trump imposed the tariffs on 2 April.

In a statement, the European Commission president Ursala von der Leyen said the EU would like to hold trade talks and will “step up work to lift barriers in our own single market,” that will be “our anchor of stability and resilience.”

She wrote on X, “I welcome President Trump’s announcement to pause reciprocal tariffs.

“It’s an important step towards stabilizing the global economy.

“Clear, predictable conditions are essential for trade and supply chains to function.

“Tariffs are taxes that only hurt businesses and consumers.

“That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States. The European Union remains committed to constructive negotiations with the United States, with the goal of achieving frictionless and mutually beneficial trade.

“At the same time, Europe continues to focus on diversifying its trade partnerships, engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas.

“Finally, we are stepping up our work to lift barriers in our own single market. This crisis has made one thing clear: in times of uncertainty, the single market is our anchor of stability and resilience. My team and I will continue to work day and night to protect European consumers, workers and businesses. Together, Europeans will emerge stronger from this crisis.”

Michael Field, chief equity strategist for investment research firm Morningstar, said, “The news of Trump backing down from tariffs is a big positive for markets, with many saying that the worst-case scenario is now off the table.

“But the overhang of the trade war is likely to persist for some time.

“Markets have already responded positively to the news, but investors remain weary of increasing tensions with steep tariffs remaining for China.”