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The FTSE 100 saw a strong rally on Monday morning, joining a broader global rebound in stock markets—even as the U.S. issued warnings that its recent exemptions on tech-related tariffs may be short-lived.
London’s primary stock index jumped by 1.97%, gaining 157 points to reach 8,121 in early trading.
Investors appear hopeful that tech giants like Apple will benefit from temporary exclusions from former President Trump’s latest round of so-called “reciprocal” tariffs, which notably include a steep 145% import tax on Chinese goods.
However, that optimism was dampened after several U.S. officials suggested the exemptions might not last. Commerce Secretary Howard Lutnick told ABC on Sunday that while some electronics are exempt from one set of tariffs, they remain subject to upcoming levies on semiconductors expected within the next couple of months.
Former President Trump added confusion with a social media post saying the items weren’t truly exempt—they were simply being reassigned to a different tariff category. He stated they would still face a 20% tariff as part of broader measures targeting China’s alleged involvement in fentanyl trafficking.
Meanwhile, markets in Asia also rebounded: Japan’s Nikkei 225 climbed 1.2%, and Hong Kong’s Hang Seng Index rose 2.2%. In Europe, Germany’s DAX increased by 1.9% and France’s CAC 40 advanced by 1.8%.
Interactive Investor analyst Richard Hunter noted that while UK markets have recently been volatile due to global uncertainties, Monday’s gains suggest sustained investor interest in the UK as a stable investment choice.
British companies with stronger ties to China, such as Prudential and Standard Chartered, posted early gains of 3% and 3.5%, respectively. Barclays, with significant U.S. exposure, also rose 4%.
The Trump administration announced late Friday that it would temporarily exclude electronics from its broader reciprocal tariffs—measures originally aimed at keeping the cost of imported tech products like smartphones under control.
China’s commerce ministry cautiously welcomed the move, calling it a positive, albeit minor, step and urging the U.S. to lift remaining trade restrictions.
The tariff pause is expected to benefit major global tech players including Apple, Samsung, and chipmakers like Nvidia.
This marks the latest adjustment in Trump’s shifting trade policy, which has seen multiple reversals in his push to impose widespread tariffs on imports from many nations.
Investors are now looking to U.S. markets for further signals, especially after the recent turmoil heavily impacted major tech stocks known as the “Magnificent Seven”: Apple, Microsoft, Nvidia, Amazon, Tesla, Alphabet (Google’s parent company), and Meta (Facebook’s parent).
These seven firms collectively lost $2.1 trillion—or 14% of their market value—since Trump first revealed his sweeping tariff plan on April 2. That loss was reduced to $644 billion, or 4%, after Wednesday’s announcement sparing electronics (except those from China).
