Investing.com -- British stocks experienced a decline on Thursday, with the FTSE 100 falling by 0.6% to 8,636.04 by 11:37 GMT.
The luxury carmaker Aston Martin Lagonda (LON:AML) saw its stock price hit a record low, falling 5.6% to 76.05, following an announcement by U.S. President Donald Trump on new tariffs affecting foreign-made vehicles and auto parts.
The President’s announcement came late on Wednesday, stating a 25% tariff on imported cars and light trucks would be implemented starting next week.
This move has expanded concerns about the ongoing global trade war initiated by Trump earlier this year.
In response to the U.S. tariff, Britain’s Finance Minister Rachel Reeves stated that the country is actively working with Washington to secure an exemption. The U.S. is the second-largest importer of British-made cars.
Reeves also suggested that the subsidies currently enjoyed by Tesla (NASDAQ:TSLA), Elon Musk’s company, could be reviewed to better support the British auto industry.
In related news, recent industry data indicates a decrease in Britain’s vehicle output for February, including electric and hybrid automobiles.
The FTSE 350 automobiles and parts stocks also fell 1.3% in response to the new tariffs and global economic conditions.