Asian stocks slide as Trump hits more than 80 countries with new tariffs – business live

Rolling coverage of the latest economic and financial news It is a mixed bag for European stock markets this morning – the Stoxx Europe 600 is down by 0.1%, led by losses in its energy sector. But the UK’s blue chip FTSE 100 index has ticked up 0.2%, with the private equity company 3i Group its best performer, up 3.5%. hipping containers stacked at the Rhine-Neckar commercial port in Mannheim, Germany, 29 July 2025 Wittek/EPA From 1h ago Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Asian stock markets have taken a beating overnight as investors come to terms with Donald Trump imposing a fresh round of sweeping trade tariffs. The US president announced a tariff of between 10% to 12.5% on dozens of countries, including the United Kingdom, Mexico, Canada, Australia, India, China and the 27 countries that make up the European Union. It effectively replaces the blanket 10% tariff that Trump imposed in February, right after the US supreme court declared that many of his earlier tariffs were illegal.

The Japanese Nikkei 225 has shed 3.1% today, while the Chinese SSE Composite is down 1.4%. Hong Kong’s Hang Seng index has also dropped 11.4%, and the South Korean Kospi, which is heavily influenced by its huge chip companies, has taken a brutal 6.2% hit. The new levies are expected to fall under section 301 of the Trade Act of 1974, which is aimed against countries that engage in forced labor.

Trump had said his administration would investigate unfair trading practices to impose permanent tariffs as soon as the February supreme court decision was announced. US trade representative Jamieson Greer said in a statement: The United States has had a forced labour import ban for nearly a century, and rigorously enforces it; it’s well past time for our trading partners to do the same. I am encouraged by the trading partners who have moved quickly to adopt forced labor import prohibitions, and look forward to ensuring their effective enforcement. No doubt a higher oil price is also not helping the Asian stock market, with Brent crude hitting $100 a barrel yesterday after a fresh escalation of the Middle East conflict threatened to compound disruption to global oil supplies.

Many investors too have likely been spooked by a sell-off in some major US tech names yesterday, amid worries about AI spending and after Tesla reported lower than expected profits. It is a mixed bag for European stock markets this morning – the Stoxx Europe 600 is down by 0.1%, led by losses in its energy sector.

The fintech Wise is however falling sharply this morning, down 9% after it told investors it has been denied a US banking licence. The London-based company, which just a few months ago switched its primary listing to New York, said the US Office of the Comptroller of the Currency rejected its application for a national trust bank charter. Wise said the decision would not affect its normal operations in the US and that it will submit a new application.

View image in fullscreen Pedestrianised high street, Bromley, London Balfour Evans/Alamy Some more upbeat news this morning – there was a strong rise in UK retail sales in June, helped by sunny weather and the World Cup. The total volume of goods sold in stores and online rose 1% in June, according to the Office for National Statistics, following a 1.2% rise in May. However, it compared very favourably with expectations of a 0.3% decline.

More shopping also took place online, with the share of internet sales rising to its highest level since April 2021 at 29.4%. And a survey by GfK found that consumer confidence in the UK economy and in their personal finances has recovered back to pre-Iran war levels. However, Harvir Dhillon, lead economist at the British Retail Consortium, warns that the next few months look difficult for the industry. While retailers have been enjoying the boost to sales, there are challenges ahead, particularly as hostilities in the Middle East resume.