"It's getting a bit messy..." Stock markets continue to slide following Trump's tariffs

As the New York Stock Exchange opens, Shelagh Fogarty hears from financial expert David Charter.

Donald Trump's tariffs have sent global markets into chaos, with sell-offs continuing on Monday in Asia, Europe and the US.

The FTSE 100, the UK's benchmark stock index, fell 2.64% as it opened.

The value of US stocks also dropped sharply, minutes after markets opened in Wall Street on Monday. The S&P 500 index, which tracks the country's leading listed companies, was tumbling by about 200 points, or 4%, shortly after opening. The Dow Jones index was down about 3.7%, and Nasdaq fell around 4.4%.

Keir Starmer and Rachel Reeves were speaking at Jaguar Land Rover. One of the tariffs that Trump announced was a 25% import tax on cars. Starmer said he thought EV targets were "a good thing".

"They’re good for the climate, good for business certainty and investment, good for British manufacturing," Starmer said.

“But I accept that those targets have to work for British manufacturers and I don’t want British firms like this one put in a position where you have to pay a hefty fine or buy credits from foreign EV companies.

“So today we’re going to introduce much more flexibility into EV mandates, we’re going to help companies based in Britain reach the targets in a way that supports growth. We’re going to cut down any fines which I don’t want or expect to see by 20%, and any money that’s raised will be invested directly back into support for the British car industry.

He praised the “engineering brilliance” of Jaguar Land Rover.

“That is our industrial heritage but also in my strongly-held view it is our industrial future, not just our heritage.

“These are challenging times but we have chosen to come here because we are going to back you to the hilt... [This] is a statement of intent about how important this is for you, for us, for the country.”

Starmer also pledged to slash the number of days it takes to set up a clinical trial from "over 250" to 150.

And the PM announced new investment of "up to £600 million" in new health data research services.

Reeves, the Chancellor, insisted: "There are huge opportunities despite the challenges that we face for the future,” she said.

“When it comes to high-quality design and engineering, you, all of you, are gold standard. The skill, the expertise that Keir and I have seen here today demonstrate why that is and why every year you produce hundreds of thousands of cars for export right across the globe, from China to Europe to India and of course the United States of America.

“Your success and those of companies like you is integral to the success of our whole British economy. But as I set out in the Spring Statement less than two weeks ago, the world is changing. We can see that before our eyes.

“The global economy has become more uncertain, and new trade barriers are impacting global trade.”

She added: "We will still feel the overall effects of tariffs elsewhere and particularly in the auto sector.

“What I want all of you to know is that this Government, this Prime Minister and with me as Chancellor, we have your back. The choice that we now have is how to respond to that changed world.

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