FTSE shares have reacted in each constructive and unfavorable methods to Trump profitable the US presidency. Nevertheless, whereas some have loved features, many are down as markets battle to evaluate the implications of the information.

General, the FTSE All Share index is down 1% since 5 November, with the FTSE 100 hitting a three-month low final week.

Many UK corporations depend on gross sales to the US and the potential for brand spanking new tariffs imposed on international imports might spell catastrophe.

Whereas the rhetoric appears largely centered on China and Mexico, tariffs of some type are prone to be imposed on all international items. A number of UK corporations are additionally uncovered to Asian markets, which might endure if China’s gross home product (GDP) declines.

I’ve recognized two FTSE shares particularly that could possibly be damage by strict import tariffs.

Prudential

Insurance coverage big Prudential (LSE: PRU) is closely uncovered to Asian markets, having shifted focus in direction of the area in recent times. Solely a month in the past, the inventory rose on information of Chinese language stimulus measures. These features have been short-lived after the measures failed to fulfill market expectations.

Then, after Trump’s win was introduced, the inventory crashed 10%.

It appears Prudential can’t catch a break. However the underlying firm’s nonetheless stable. New enterprise revenue elevated 11% within the newest third-quarter outcomes, with gross sales up 10% in comparison with Q3 2023.

Earnings are forecast to develop 28% a 12 months going ahead, with a ahead price-to-earnings (P/E) ratio of 8.44. These figures counsel the inventory has good progress potential — however that will change if Trump’s tariffs come to gentle.

The tariffs — and Trump’s victory — weren’t totally sudden, so I think Prudential already has a plan. If that’s the case, it might be able to keep away from vital losses. Nonetheless, it’s a inventory I’d keep away from till the eventual final result of the state of affairs’s clearer.

Anglo American

Anyone watching markets will know this week has been devastating for European mining shares. This was a two-fold hit coming from each US greenback progress and China’s disappointing stimulus measures.

Anglo American (LSE: AAL), together with fellow miners Rio Tinto, Antofagasta and Glencore, fell practically 10% up to now week. With mineral gross sales closely depending on Chinese language commerce, the mixed risk of low stimulus and commerce tariffs took its toll.

Gold and silver didn’t escape the sell-off, falling 4.4% and a pair of.8% respectively. Platinum, Anglo’s greatest cash spinner, additionally took a 2.8% fall.

It’s not all doom and gloom. Anglo just lately bought off £850m price of steelmaking coal property, serving to to shore up its stability sheet. With additional gross sales deliberate, it might claw its means again to profitability. Earnings are forecast to show constructive within the coming months.

The falling price might reignite curiosity from Australian mining big BHP, which tried a takeover of Anglo American earlier this 12 months. A contemporary supply might enhance share price progress.

For traders in search of a discount, the present low price could possibly be a superb alternative to think about. However till Trump takes workplace on 20 January, the precise final result of his tariff plans is unclear.