UK shares fall after Trump signals tariff escalation

March 31 (Reuters) - UK shares fell on Monday after U.S. President Donald Trump signaled that his reciprocal tariffs would cover all countries, intensifying a global trade war.

The blue-chip FTSE 100 fell 1% as of 1011 GMT; the midcap FTSE 250 index dropped 1.9% to a more-than-eleven-month low.

Speaking to reporters late on Sunday, Trump said the tariffs would essentially affect all countries. He is set to announce reciprocal tariffs on Wednesday, followed by auto levies on Thursday, though specifics remain unclear.

British Prime Minister Keir Starmer and Trump discussed "productive negotiations" toward a UK-U.S. economic prosperity deal during a Sunday phone call, according to Downing Street.

Though Trump suggested on Friday he might exempt certain countries from tariffs, weekend reports indicated he was pushing advisers towards more aggressive measures.

On Monday, Bank of England data revealed British mortgage approvals softened in February, with consumer credit growing at a slower pace than the previous month.

Among individual stocks, Associated British Foods ABF.L dropped 2.7% after the food processing firm said the boss of its Primark clothing business, Paul Marchant, has resigned with immediate effect following an allegation made by an individual about his behaviour towards her in a social environment.

Pets at Home Group PETSP.L fell 11.6% after warning that its fiscal 2026 underlying pretax profit would plunge due to rising costs and weak demand for pet accessories.

Wood Group WG.L slumped 29.1% after the oilfield services and engineering firm said it had identified "material weaknesses and failures" in its financial culture within its projects business unit, following an independent review conducted by Deloitte.

On the flip side, Aston Martin AML.L rose 9.4% after the carmaker said it would raise over 125 million pounds ($161.9 million) through funding from Chairman Lawrence Stroll's investment vehicle and the sale of its minority stake in the Formula One team he owns.

($1 = 0.7738 pounds)

 For related prices, Reuters users may click on -  UK stock report     .L     FTSE index:         0#.FTS6  techMARK 100 index: .FTT1X         FTSE futures:     0#FFI:  Gilt futures:       0#FLG:         Smallcap index:    .FTSC  FTSE 250 index:     .FTMC          FTSE 350 index:    .FTLC  Market digest:      .AD.L          Top 10 by vol:     .AV.L  Top price gainers:  .NG.L          Top % gainers:     .PG.L  Top price losers:   .NL.L          Top % losers:      .PL.L 
     For related news, click on - UK hot stocks:      HOT and GB     Wall Street:          .N Gilts report:       GB/            Euro bond report GVD/EUR Pan European stock report: .EU Tokyo stocks:       .T             HK stocks:           .HK Sterling report:    GBP/           Dollar report:      USD/
     For company prices, click on - Company directory:  UKEQ          By sector:          FTAX 
     For pan-European market data, click on - European Equities speed guide................ EUR/EQUITY  FTSE Eurotop 300 index........................... .FTEU3  DJ STOXX index................................... .STOXX  Top 10 STOXX sectors........................ .PGL.STOXXS  Top 10 EUROSTOXX sectors................... .PGL.STOXXES  Top 10 Eurotop 300 sectors.................. .PGL.FTEU3S  Top 25 European pct gainers.................... .PG.PEUR  Top 25 European pct losers..................... .PL.PEUR