The Barclays (LSE: BARC) share price has slumped 13% since President Trump imposed his punitive import tariffs on the world.

It comes after the FTSE 100 fell greater than 3% over the identical interval. It’s again down to the place it was as way back as… oh, solely January. Possibly not such a large deal. It’s a smaller fall than the S&P 500, which misplaced 4.8% on the day after the announcement. And the Nasdaq fell 6%.

The price actions I discuss listed here are as I write on 4 April, and are more likely to change even because the minutes go by.

Panic, or what?

What would billionaire investor Warren Buffett do? He’d at the very least be capable to present a quote to make us assume:

Each decade or so, darkish clouds will fill the financial skies, and they’re going to briefly rain gold. When downpours of that kind happen, it’s crucial that we rush open air carrying washtubs, not teaspoons.

Letter to Berkshire Hathaway shareholders, 2016

The query is, do Barclays shares appear like the bathe of gold he’s speaking about? Properly, the dramatic fallout from Trump tariffs seems to be fairly torrential to me.

Why Barclays?

Barclays isn’t the one FTSE 100 financial institution to fall prior to now couple of days.

With these elevated import levies being imposed on items, it’s not instantly apparent why banks ought to undergo. Not less than circuitously. However when different companies hit a downturn, the banks behind their financing actually can’t escape a number of the ache.

NatWest Group is down 8.9%. And the Lloyds Banking Group share price has dropped 8.8%, regardless of a concentrate on UK enterprise.

Barclays was the one notable exception after the 2008 banking disaster to take care of its worldwide banking enterprise. Near a 3rd of its revenues come from the US. So it’s hardly stunning that sentiment has shifted towards it greater than the opposite UK excessive avenue banks.

In perspective

Earlier than we get too shaken by this sudden share price droop, we actually ought to take a look at the larger image. Barclays shares have nonetheless climbed 33% prior to now 12 months. They usually’ve greater than trebled over 5 years.

Even after that, have been a trailing price-to-earnings (P/E) ratio of about 7.4, solely round half the FTSE 100 common. It means earnings in 2025 might take a big knock and nonetheless depart the shares in what I see as good-value territory.

Forecasts see rising earnings pushing the Barclays P/E down to six.7 in 2025, and as little as 5.3 by 2026. They’ll little doubt be up to date quickly. However I nonetheless see a good bit of security margin in such meagre valuations.

Snap it up?

Barclays must be value contemplating for any investor who thinks that Donald Trump, like numerous others who’ve tried earlier than him, will be unable to buck the market over the long run.

The truth is, I believe the identical about a lot of fallen UK shares proper now. And a few US ones. The place’s my washtub?