As a day of reckoning plays out in across global markets, some companies listed in the FTSE 100 (^FTSE) will be glad they hedged their bets in the US ahead of US president Donald Trump's sweeping tariff decisions. As widespread so-called "reciprocal tariffs" were brought in by Trump on Wednesday, many companies doing business with the US will be thinking of how to restructure deals and the products they produce. The UK received a comparably more lenient 10% levy, while EU countries face a 20% import tax to the US. Meanwhile, China was slapped with a 34% tariff which it said on Friday it would reciprocate. As countries scramble to renegotiate their terms with one of the world's biggest trading nations, companies are right to be worried. “UK companies selling into the US could see a slowdown in sales if US customers deem goods too expensive under the new tariff regime," said Dan Coatsworth, investment analyst at AJ Bell. Read more: How Trump's tariffs will impact your finances and the UK economy "It means companies need to assess all their options to keep their engines ticking over smoothly and not spluttering." He added: “One way for UK companies to get around tariffs is to build more products in the US. Investing in factories or offices creates jobs for Americans and could bring significant investment to industrial heartlands, something that would please Trump no end." AJ Bell looked into the FTSE (^FTSE)-listed companies with the biggest proportion of their operations in the US. Some UK companies have already planted flags Stateside. There are 20 companies in the FTSE 100 (^FTSE) index with more than 20% of their facilities in the US, according to AJ Bell analysis of Bloomberg data. This suggests that markets might have over-exaggerated the tariff hit to certain stocks. If a big chunk of goods are made and sold on US soil by UK companies, there are no tariffs to pay. International equipment hire company Ashtead (AHT.L) topped the charts, with 90% of its facilities located in the US. Meanwhile food service company Compass (CPG.L) clocked 68% of its sales across the pond. Credit ratings agency Experian (EXPN.L) also collects just under half of its sales from US markets, with 59% of its facilities based in the US. Here's the data: As defence has become increasingly important in recent months, it's notable that BAE Systems' (BA.L) operations are mostly Stateside. Calculations show 59% of its facilities are in the US, with the manufacture of armoured vehicles, ship repair and explosive materials geared to supply the US Department of Defense. Story Continues Meanwhile, approximately two thirds of aerospace tech firm Melrose’s (MRO.L) sales come from America and 29% of its facilities are in the country. Last December Melrose-owned GKN Aerospace opened a $55m repair facility for aero-engine components in San Diego, which was a major financial commitment. It doubles the company’s maintenance, repair and overhaul capacity in the region, AJ Bell added. “The fact many UK companies are already in the States is important on another level. Having an existing presence makes it easier to press the button on adding more, rather than starting from scratch in the country," said Coatsworth. By 3.30pm on Friday in London, the FTSE 100 (^FTSE) was down around 4.7%, with all component parts of the index in decline, according to Yahoo data. The top fallers were mining companies, which are typically vulnerable to trade disputes, and financial services firms and banking stocks. Read more: What Trump's tariffs could mean for UK mortgage rates Will Trump's tariffs change Bank of England's interest rate plan? How and when Trump's tariffs could impact UK inflationDownload the Yahoo Finance app, available for Apple and Android. View Comments
The FTSE 100 companies that could come out best after Trump's tariffs
You are reading a free article with opinions that may differ from the recommendation given by Kalkine in its paid research reports. Become a Kalkine member today to get access to our research reports, in-depth technical and fundamental research.
Start Your Free Trial Now!Not sure where to invest today?
Kalkine’s latest research highlights three companies identified through in-depth analysis and market insights.
Explore these research reports to learn about companies currently being tracked by our analysts and make more informed investment decisions.
View 3 Research ReportsThis information, including any data, is sourced from Unicorn Data Services SAS, trading as EOD Historical Data (“EODHD”) on ‘as is’ basis, using their API. The information and data provided on this page, as well as via the API, are not guaranteed to be real-time or accurate. In some cases, the data may include analyst ratings or recommendations sourced through the EODHD API, which are intended solely for general informational purposes.
This information does not consider your personal objectives, financial situation, or needs. Kalkine does not assume any responsibility for any trading losses you might incur as a result of using this information, data, or any analyst rating or recommendation provided. Kalkine will not accept any liability for any loss or damage resulting from reliance on the information, including but not limited to data, quotes, charts, analyst ratings, recommendations, and buy/sell signals sourced via the API.
Please be fully informed about the risks and costs associated with trading in the financial markets, as it is one of the riskiest forms of investment. Kalkine does not provide any warranties regarding the information on this page, including, without limitation, warranties of merchantability or fitness for a particular purpose or use.
Please wait processing your request...