LIVE MARKETS-Trump tariffs: will the UK earn a free pass?

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TRUMP TARIFFS: WILL THE UK EARN A FREE PASS?

The world is bracing for the worst on "Liberation Day" but London stocks might navigate the tariff storm relatively better compared to their continental peers.

Ambiguities in trade data - both the UK and the US report trade surpluses with each other - could work in favour of an exemption, and US President Donald Trump himself has suggested the UK may be able to avoid tariffs.

While uncertainty prevails, there is hope that Britain might escape the worst of it.

"The UK has taken a more considered approach in hope that a long-standing strong relationship with the US will help it avoid the worst", writes Russ Mould, investment director at AJ Bell.

"Keir Starmer has focused a lot of his energy on keeping the conversation going with Trump. If that approach doesn't prove fruitful, we could see heightened volatility".

Mould warns that companies in the pharma, food and drink, aviation, chemical and auto sectors could be particularly vulnerable if Trump does not give the UK special treatment.

He mentions stocks such as drugmakers GSK GSK.L and AstraZeneca AZN.L, along with industrial group Melrose MRON.L, which all have an over 40% revenue exposure to the US.

For context, the internationally oriented FTSE 100 .FTSE has a 25% revenue exposure to the US, while the domestically focused FTSE 250 .FTMC has around 15%, according to Citi.

(Danilo Masoni)

EARLIER ON LIVE MARKETS:

HEALTHCARE LEADS EUROPE LOWER CLICK HERE

EUROPE BEFORE THE BELL: FUTURES DIP AHEAD OF LIBERATION DAY CLICK HERE

MORNING BID: MARKETS AT A STANDSTILL BEFORE TARIFF DRAMA CLICK HERE