On Monday (14 April), the US introduced new semiconductor and pharmaceutical import probes. That is seemingly a precursor to sector-specific tariffs from the Trump administration. Though precise particulars on tariff sizes are but to be confirmed, some UK shares could possibly be negatively affected. Listed below are two which are on the prime of my record.

Provide chain points

AstraZeneca (LSE:AZN) is among the most distinguished world gamers within the pharmaceutical area. The inventory is down 14% within the final month and down 7% up to now 12 months. The short-term transfer already displays some concern from traders concerning the influence of the brand new US commerce insurance policies.

Briefly, the US is AstraZeneca’s largest market. The corporate manufactures and exports a spread of medicine to the US, together with remedies for most cancers and respiratory ailments. Subsequently, President Trump’s proposed tariffs on pharmaceutical imports might immediately have an effect on income.

Traditionally, medication have been exempt from world tariffs attributable to their life-saving nature. But this doesn’t seem to use proper now, with chatter over the previous week indicating that import levies are positively going to occur for this sector.

The corporate does certainly have US manufacturing amenities, similar to in Maryland and Delaware. It might reply by increasing home manufacturing to restrict import prices. Additional, it might look to soak up the tariff prices, that means that client demand stays excessive. Nevertheless, I believe it’s going to be a tricky 12 months forward for the corporate to navigate the availability chain workarounds.

Penny inventory woes

A second firm within the highlight is IQE (LSE:IQE). The penny inventory has a market cap of £92m and has misplaced 66% of worth up to now 12 months. IQE is a number one provider of semiconductor elements utilized in varied digital gadgets.

The corporate has important operations and buyer bases within the US, together with partnerships with main tech companies. For instance, it provides merchandise on to corporations, which then add elements and promote to Apple. So, the influence that Apple is feeling proper now, with tariff complications with China, might filter down to decrease demand for IQE.

Except for this, the tariffs will influence the corporate extra immediately from its exports to the US. It’s not a big enterprise, so I battle to see it having the ability to spend money on making a brand new manufacturing facility in America (it at the moment is predicated in Cardiff).

Then again, the share price might rally sooner or later because the merchandise are in demand for varied AI initiatives. That is the longer term, so some important contract wins might trigger traders to get excited. Nevertheless, proper now I believe the import levy issues are entrance of thoughts for a lot of.

Total, I’m staying away from each corporations given the present headline information and really feel there are higher investing choices elsehwere.