(Reuters) -The FTSE 100 edged lower on Monday as market pessimism resurfaced due to fresh strains in global trade relations, following U.S. President Donald Trump’s pledge to double steel and aluminium import tariffs.
As of 0954 GMT, the blue-chip FTSE 100 was down 0.1%, while the domestically focussed FTSE 250 fell 0.03%.
Trump announced on late Friday his plans to increase tariffs on imported steel and aluminium to 50% from 25%, prompting the European Union to warn of potential retaliation.
U.S.-China negotiations also appeared strained after Trump accused Beijing of violating a bilateral tariff reduction agreement. China dismissed these claims as “groundless” on Monday, vowing to take forceful measures to protect its interests.
The industrial sub-index shed 0.5%.
Luxury goods makers Burberry Group and Watches of Switzerland Group dropped 1% and 2%, respectively.
On the flip side, the aerospace and defence sub-index gained 1%…
