FTSE 100 Breaks New High as Tariffs Fail to Deter Investors

The FTSE 100 has reached a new high, following a strong session on Wall Street. Despite fresh trade tariffs imposed by US President Donald Trump, investors remain optimistic, as the "TACO" thesis suggests Trump always backs down. The main UK index rose 1.2% to 8,970, while the Nasdaq also hit a new record high.

The FTSE 100 has reached a new high, climbing 1.2% to 8,970 points on Thursday, July 10, 2025. This significant milestone follows a strong session on Wall Street, with the Nasdaq also hitting a new record high. Despite fresh trade tariffs imposed by U.S. President Donald Trump, investors remain optimistic, as the "TACO" thesis suggests Trump always backs down [1].

The rally was led by mining stocks, with Rio Tinto (NYSE:RIO) (LON:RIO), Glencore (OTC:GLNCY) (LON:GLEN), Anglo American (JO:AGLJ) (LON:AAL), Fresnillo (LON:FRES), and Endeavour among the top performers. These stocks benefited from rising prices for iron ore, copper, and gold [1].

The FTSE 100 has risen 9.5% year-to-date, benefiting from a rotation out of U.S. assets amid fears that Trump's trade actions could weigh on the American economy. The U.K.'s early trade agreement with the U.S. has also added to London’s appeal [1].

President Donald Trump intensified trade tensions on Tuesday by announcing a 50% tariff on imported copper and signaling that long-discussed levies on semiconductors and pharmaceuticals are imminent. The copper tariff announcement triggered a sharp market reaction, with U.S. Comex copper futures surging more than 12% to an all-time high. U.S. Commerce Secretary Howard Lutnick said the measure is expected to take effect by August 1 [1].

The market’s apparent indifference to escalating trade tensions is notable. Chris Beauchamp, chief market analyst at IG, said, “Perhaps most notable is the market’s apparent indifference to escalating trade tensions. Trump’s 50 percent tariff on copper imports and threats toward Brazil triggered little reaction. Many now view such announcements as political posturing, summed up by TACO: Trump Always Chickens Out” [1].

The FTSE 100's performance is a testament to the resilience of global markets in the face of geopolitical uncertainty. While the trade war continues to be a significant risk, investors seem to believe that the U.S. administration's actions are more posturing than substance.

References:
[1] https://www.investing.com/news/stock-market-news/uks-ftse-100-index-hits-record-high-led-by-strong-miners-performance-4129280
[2] https://www.usatoday.com/story/money/markets/2025/07/10/us-stocks-thursday-tariff-trump/84527678007/
[3] https://www.theguardian.com/business/live/2025/jul/10/royal-mail-scrap-second-class-post-saturdays-stamps-stock-markets-trade-war-business-live