FTSE 100 flat as Trump sends out tariff letters, warns of 70% levies

The FTSE 100 ( ^FTSE ) and European stocks were jittery on Friday, moving lower as US markets were closed for 4 July, while investors look to movement in US tax and tariff policy for clues on the direction of the economy.

Ahead of a 9 July deadline, letters will start going out to countries to notify countries of the tariff rates they will face on exports to the US, Trump told reporters, to go into effect on 1 August. The first 10 or 12 letters sent out will be followed by similar batches.

“By the ninth they’ll be fully covered,” Trump said in reference to the deadline, per Bloomberg. “They’ll range in value from maybe 60% or 70% tariffs to 10% and 20% tariffs.”

Late on Thursday, Trump also secured the passage of his much-discussed tax and spending bill. He told reporters there was “no better birthday present for America” than the so-called "big, beautiful" bill's passing.

The House of Representatives passed the bill by a vote of 218 to 214 on Thursday afternoon. It was approved in the Senate on Tuesday by one vote.

Estimates were made by the Congressional Budget Office that the bill may add $3.3tn (£2.4tn) to federal deficits in the next decade.