UK markets have been pummelled by US president Donald Trump’s newly-introduced tariffs, with JD Sports and miners hit particularly hard on the FTSE 100.
JD Sports has been pushing a rapid expansion into the US, which is now its largest region by revenue, but is set to be hit by the 10 per cent tariff on all UK goods going to the US, as well as higher tariffs for clothing made in other countries.
The sports fashion retailer, which is due to release a trading statement next week, has seen its share price fall almost five per cent today. It is down almost 30 per cent since the start of the year.
Similar movements have been seen in the futures trading of US clothing retailers like Nike (-8.8 per cent) and Lululemon (-11.2 per cent).
Some of the hardest hit companies on the FTSE 250 have been Vietnam-focused investment trusts, thanks to the 46 per cent tariffs implemented on the country.
Vietnam has recently begun to flourish as a manufacturing hub, focusing on making clothing, furniture and toys as companies attempted to diversify their supply chains from China.
“Dr Martens is one of the many companies reliant on Vietnam for a lot of its products and it will now be looking hard at alternative sources,” noted Hargreaves Lansdown analyst Dan Coatsworth.
The shoe manufacturer’s share price is down 3.7 per cent today, and more than 30 per cent since the start of 2025.
Despite being seen as defensive stocks, FTSE 100 miners like Antofagasta and Anglo American have both fallen more than four per cent this morning, likely due to fears that commodity pricing will be impacted by the tariffs.
Finally, luxury brands like Burberry and Watches of Switzerland have been hit badly, with share prices falling 7.2 per cent and 12.4 per cent respectively.
“The biggest risk for luxury sector are not the tariffs applied to goods, as luxury has pricing power and luxury consumers are global travellers, but the impact of those on economic growth and consumer sentiment,” explained Jelena Sokolova, senior equity analyst at Morningstar.
“Poor performance of the US stock market this year is a negative read-across to luxury demand and some companies have started seeing slowdown in this market after very strong fourth quarter.”
Stocks to escape Trump’s tariffs
In response to the tariffs, investors have been rapidly pivoting their portfolios to try and take advantage of the change in global trade dynamics.
“What we are witnessing is fundamental re-ordering of the global economy, from which there will be significant investment opportunities,” explained Mike Fox, head of equities at Royal London Asset Management.
“Understanding this re-ordering and the economic framework which will come out from it will be critical,” he added.
Investors have immediately flocked to FTSE 100 defensive stocks like National Grid, Haleon and British American Tobacco as a result.
In addition to being defensive, pharmaceutical firms such as GSK have surged due to Trump’s decision to exempt pharmaceuticals and semiconductors from the tariffs.
Guinness owner Diageo also saw its shares rise more than two per cent after tariffs imposed on the UK came in lower than expected.
However, gold has been the biggest winner of the day, hitting a fresh high briefly of $3,225 following Trump’s speech, before returning to $3,125.