The ASX companies exposed to Trump's trade war — and the names that could benefit
From Bluescope to Resmed to WiseTech and Cettire, an unfolding global trade war will have far reaching implications for some of the biggest names on the ASX.
Australian institutional investors are frantically calculating how exposed the ASX – and their portfolios – are in the brave new world of Donald Trump's tariffs and an escalating global trade war.
The ASX fell 2% in early trade on Monday before bouncing slightly after Trump unleashed 25% import duties on Canada and Mexico and a 10% levy on China. Overnight, Trump delayed tariffs on Mexico for a month, offering welcome relief for US stocks. Even before that, fund managers said the local market looked oversold as investors reacted to the speed of their original planned implementation.
"There are some quality companies that are looking interesting," Ten Cap chief investment officer Jun Bei Liu told Capital Brief. "Companies with pricing power will be able to pass this on to consumers while price takers are going to struggle."
Liu, who recently launched a new $1.5 billion hedge fund, estimated that soaring steel prices alone could push Bluescope Steel to issue a "double digit earnings upgrade".
