Record High for FTSE 100 as Investors Call Trump’s Tariff Bluff

The FTSE 100 has climbed to an all-time high of 8,979 points, as investors appear to be calling Donald Trump’s tariff bluff. The London stock market’s impressive surge, now nearing the 9,000-point milestone and surpassing its previous record of 8,908, is underpinned by a widespread belief that the former President will ultimately retract his aggressive trade threats.
This record-breaking performance in London mirrors a broader wave of confidence sweeping through global markets. Traders are strategically wagering that Trump will either postpone the scheduled tariffs or successfully negotiate trade deals that prevent a full-scale trade war from erupting. This expectation of a diplomatic resolution is fueling bullish sentiment across various asset classes.
The rally has been particularly advantageous for the mining sector, with leading companies like Anglo American, Glencore, and Rio Tinto all recording gains of nearly 4%. This strong showing in mining stocks is further supported by a general rise in global commodity prices, notably for copper and gold, which have also benefited from a weakening US dollar, making them more attractive to international buyers.
Despite Trump’s recent announcement of new tariffs slated to take effect on August 1st, the market has remained remarkably upbeat. Analysts widely attribute this resilience to what they refer to as the “Taco trade”—a market phenomenon where investors anticipate that Trump’s initial aggressive trade postures are often followed by a tempering of rhetoric or a full withdrawal of the threatened measures, a pattern they are now heavily factoring into their strategies.