Astrazeneca, BP, HSBC: The FTSE 100 stocks hit by Trump and China’s trade war
The global trade war has kicked into a new gear and it’s bad news for some of the FTSE 100’s biggest firms.
Numerous giants on the UK’s flagship index have significant exposure to Asia and more importantly one of Trumps biggest targets – China.
The White House has been relentless in its trade offensive on China and Beijing have hit back just as hard.
As of Wednesday, China’s total import tax to the US reached 104 per cent. The Asian superpower also ramped up its rate on the US to 84 per cent.
And now FTSE 100 companies are caught in the crosshairs.
HSBC’s plunged four per cent driven by its significant exposure to Asia.
The lender’s shares have fallen over 15 per cent in the last five-days. Its downturn deepened in its dual-listing in Hong Kong, where stock has dropped nearly 20 per cent.
William Howlett, financial analyst at Quilter Cheviot, said: “The outsized tariffs are seen against Asian economies and in that context, it is understandable that the Asian banks (HSBC and Standard Chartered) have sold off the most.”
US and China will have ‘major influence’ on global markets
Meanwhile, shares in British drugmaker Astrazeneca plummeted over six per cent during mid-day trading on Wednesday.
Astrazeneca has significant operations in China, which is one of the largest pharmaceutical markets in the world. Its activity in region pocketed $1.36bn (£1bn) in revenue for the fourth quarter of 2024.
The firm also faces a threat as Trump narrows his target on pharma imports.
The President reiterated plans for tariffs on all “major” imports from drugmakers during an event with the National Republican Congressional Committee yesterday.
In China’s energy sector, FTSE giant BP has become a key player.
The firm has significant partnerships with Chinese state-owned enterprises (SOEs) in oil and gas ventures.
It has also started investing in electric vehicle charging infrastructure as the market in China rapidly expands.
The total destruction of global trade flow has become a stock-sinking headache for BP and investors have quickly sold-off. Shares dropped over six per cent midday on Wednesday.
Dan Coatsworth, investment analyst at AJ Bell, said: “What happens between the US and China in the coming days will have a major influence on the direction of markets.
“A deal could be positive for stocks and shares, but China standing firm could be the opposite.”