US asset managers fall after China's retaliatory tariffs extend market downturn

Shares of U.S. asset managers fall in early trading after China's finance ministry said on Friday it will respond to President Donald Trump's tariffs with additional tariffs of 34% on all U.S. goods from April 10

Apollo APO.N down 8.4%, Blackstone BX.N and BlackRock BLK.N drop 6%, and Charles Schwab SCHW.N slips 4.5%

Janus Henderson JHG.N falls 6.8% and AllianceBernstein AB.N falls 1.9%

Asset managers could see a drop in fees, which is often tied to the value of assets under management, if trade war fears, economic uncertainty and inflationary pressures from tariffs cause a prolonged downturn in the markets

"After a strong finish to 2024, the escalating trade war and federal spending cuts have increased the risk of stagflation," BofA analysts said in a note

Brokerage said that management fees will be up in Q1 2025 since correction occurred in month 3 of the quarter, but also flagged that fees should be down in Q2 if markets don't rebound