Rolls-Royce Holdings PLC (LSE:RR.) and BAE Systems PLC (LSE:BA.) are among those most likely to feel the effects if Donald Trump wins the US presidential election.
The duo sit as the most exposed to the US market, XTB analyst Kathleen Brooks noted on Tuesday, leaving them vulnerable to likely isolationist measures under a Trump presidency.
“We think a win for the former president could have a long-term impact on global financial markets due to his plans for tariffs,” she said.
“A US system of import tariffs would reorder global trade flows and hurt global growth.”
Trump has pledged to stick a universal tariff of 10% on all imports, alongside 100% on imported vehicles and 60% on Chinese goods.
Brooks noted energy firms were also at risk were Trump to win given exposure to global growth trends, alongside car makers such as Jaguar Land Rover.
“In 2022, the Land Rover Defender was the most popular car exported to the US,” Brooks said, with tariffs likely to leave the company struggling to find a replacement market.
“The US is the UK’s largest export market. 25% of all manufactured UK exports went to the US in 2023, which totalled more than £56 billion. Thus, it is important to the UK export industry to maintain strong links with the US.”