UK stocks slip as Trump reignites tariff worries

British equities slipped on Friday, as renewed trade tensions after US President Donald Trump recommended a 50 per cent tariff on goods from the European Union overshadowed positive UK economic data.

Sterling traded at its highest in over three years, adding pressure to the UK’s export-heavy benchmark share index. The FTSE 100 slipped 0.2 per cent, though it notched a second weekly gain.

However, the blue-chip index fell less sharply than its European peers as Britain is no longer an EU member following the Brexit referendum in 2016 and the country also clinched a limited bilateral trade deal with the United States earlier this month. The domestically-focussed midcap index fell 0.4 per cent, posting its first weekly decline in seven weeks. Stocks came under pressure earlier this week as concerns over rising debt in the United States and a higher-than-expected UK government budget deficit dampened investor sentiment.