This week’s announcement of 10% trade tariffs on UK goods to the US has sent shockwaves through British markets. With transatlantic trade under pressure, several UK shares could feel the impact — particularly those with significant exposure to the American market.
Although many UK businesses deal with the US, three in particular stand out due to their high sales in the region. These companies that appear to be most exposed are Ashtead Group (LSE: AHT), Compass Group (LSE: CPG), and Experian (LSE: EXPN).
Let’s see how the new tariffs could affect the performance of these stocks going forward.
Ashtead Group
Ashtead Group is a British equipment rental company that has achieved tremendous success in America. It now generates 92% of its sales through its US-based Sunbelt Rentals division. If tariffs are extended to machinery or parts sourced from the UK, the company may encounter higher costs that could squeeze margins.
The stock is already down 11% since tariffs were announced, almost double the 5.7% drop of the FTSE 100. At £37.24, it’s now at its lowest level in almost three years.
The company has already planned to move its primary listing to the US and may now choose to fully relocate there. In the long run, such a move could be highly beneficial for the company but I think it’s wise to hold off until there’s more clarity.
Compass Group
As the world’s largest catering firm, Compass Group operates extensively across schools, hospitals, and corporate campuses worldwide. The extensive number of contracts it holds in the US accounts for 68% of its sales. While much of the firm’s US sourcing is domestic, any UK-supplied speciality goods or services could be impacted, raising concerns about cost management and potential contract renegotiations.
The shares suffered only a minor 2.5% drop when the tariffs were announced, reflecting confidence among investors. They remain up 134% over the past five years. Since tariffs largely target automotive, electronics, consumer goods, and agriculture, I don’t think Compass will be badly affected.
However, it already has a high price-to-earnings (P/E) ratio of 41.3, so growth could be slow. I’ll consider the stock only if earnings increase considerably in the next results.
Experian
Experian is one of the world’s largest consumer credit reporting firms, deriving 66% of its income from North America. Fortunately, most of its services are digital and data-based, meaning direct exposure to tariffs is limited. However, any deterioration in UK/US relations could have indirect effects on regulation, data-sharing agreements, and cross-border operations.
The shares are down 8.3% since the announcement, slightly above the FTSE 100. But like Compass, I don’t expect Experian to be hard hit by the tariffs. The biggest risk may be competition from US-based rivals like Equifax and TransUnion. At the same time, UK-based firms that use these rivals may choose to switch to Experian as a result of the tariffs.
Price targets still look good, with analysts expecting a 30% price increase in the coming 12 months. Overall, I like its prospects and think it’s still worth considering, despite the tariffs.
