UK shares rise as US exempts Britain from additional metal tariffs

By Ragini Mathur

June 4 (Reuters) - London shares edged higher on Wednesday after Britain secured an exemption from the United States' doubled tariffs on steel and aluminum imports, easing ongoing trade tensions that have unsettled markets throughout much of the year.

As of 0932 GMT, the blue-chip FTSE 100 .FTSE was up 0.3%, and the midcap FTSE 250 .FTMC rose 0.5%.

The U.S. announcement, which exempts British steel and aluminum from a doubling of tariffs to 50%, came in a proclamation signed by U.S. President Donald Trump on Tuesday that raises metals tariffs for other countries from June 4.

"UK markets have made another step in the right direction this morning...as investors look eager to shrug off U.S. trade drama," said Matt Britzman, senior equity analyst, Hargreaves Lansdown.

Miners of both industrial .FTNMX551020 and precious .FTNMX551030 metals gained over 1% as gold and copper prices stabilised on the day. GOL/MET/L

DiscoverIE DSCV.L topped the midcap index with 11.2% gains after the designer and manufacturer of customised electronics posted a 4% rise in 2025 preliminary adjusted pretax profit.

On the flip side, discount retailer B&M BMEB.L fell 6.2% to the bottom of the midcap index after reporting annual sales below expectations, as waning consumer demand and persistent inflation hampered its UK operations.

Meanwhile, the S&P Global PMI data showed that Britain's services sector returned to tepid growth in May after fears about Trump's tariffs caused it to shrink in April.

Investors kept their focus on the pace of trade negotiations and the lack of significant progress, as Wednesday is the deadline for U.S. trading partners to submit their proposals to avoid Trump's "Liberation Day" tariffs taking effect in early July.

Nonetheless, British equities have rebounded from their April lows after the country clinched a limited trade agreement with the U.S. earlier in May. The blue-chip FTSE 100 is now sitting about 1% away from its all-time highs.

"The premier index is seemingly gathering an array of international investor admirers, given the stability and maturity of its constituents," said Richard Hunter, Head of Markets at interactive investor.

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