GE, DuPont Stocks Caught In Trump’s Trade War. The Pain Is Spreading Far.
Story by Al Root
Investors are entering the fog-of-war phase of President Donald Trump’s tariffs. Shares of companies with businesses in China, like DuPont and GE Aerospace, fell Friday.
Many stocks were slipping falling as investors continue to digest headlines. The impact of Trump’s plans—and the retaliatory measures it could provoke—is proving difficult to project.
China announced 34% retaliatory tariffs against the U.S. after the president’s evening announcement of 34% so-called reciprocal tariffs on China. The levies on China were much higher than investors expected, with reciprocal tariff rates adjusted for “currency manipulation and trade barriers.”
Shares of petrochemical maker Dow fell 10.4% on Friday, while the S&P 500 and Dow Jones Industrial Average dropped 6% and 5.5%, respectively.
“The U.S. exports more polyethylene to China than to any other country,” wrote J.P. Morgan analyst Jeffrey J. Zekauskas on Friday. He cut his Dow rating to Hold from Buy and lowered his price target to $31 a share from $40.
DuPont stock fell 12.8%. The company has significant operations in the Asia Pacific region, which includes China, and Asia Pacific sales accounted for about 43% of the company’s 2024 total.
GE Aerospace stock lost 11.1%. It, along with its partner Safran, supplies the engine for the Chinese-built C919 jetliner. It also supplies Boeing engines too. Boeing stock dropped 9.5% on Friday and 21% for the week.
GE HealthCare Technologies shares fell 16% in Friday trading after reports that China would open up an anti-dumping trade case looking into CT machine parts. In 2024, China accounted for about 11% of its revenue.
The individual stock impacts are too numerous to list. Investors can expect a period of more pain while Trump’s tariff shock waves reverberate around the globe.
https://www.msn.com/en-us/money/topstocks/ge-dupont-stocks-caught-in-trump-s-trade-war-the-pain-is-spreading-far