US asset managers fall after Trump slaps reciprocal tariffs

** Shares of U.S. asset managers fall in premarket trading after U.S. President Donald Trump announced tariffs

** Trump said on Wednesday he would impose a 10% baseline tariff on all imports to the U.S. and higher reciprocal duties on some of the country's biggest trading partners, including China

** Apollo APO down 6.4%, Blackstone BX falls 4.5%, BlackRock BLK drops 4.3%, and Charles Schwab SCHW slips 4%

** 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 an elongated downturn in the markets

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

** Brokerage says asset managers see risk from flows and beta if the US equity market correction were to deepen