The British pound has reacted strongly to Donald Trump's sweeping tariffs, which were unveiled on Wednesday. Sterling was up by 0.7% this morning (April 3) to $1.3097 after the US President announced the UK would be charged 10% on US imports of British goods and 25% on foreign cars.

The pound has been trading above $1.30 for the first time since October. Before Mr Trump's bombshell announcement it was at $1.298. Sterling was trading about level with the euro at €1.1964. The euro rose against the dollar almost one percent today to a two-week high of $1.0950.

Meanwhile, London's FTSE 100 Index dropped sharply on opening, falling 122.4 points or 1.4% to 8486.09 in the first few minutes of trading.

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