Bunzl, the UK’s largest listed business, has seen its market value plummet by £2 billion due to growing uncertainty from Donald Trump’s tariffs. The company has revised its growth projections and paused its share buyback programme amidst a challenging trading environment.
Bunzl’s £2bn Market Value Hit Amid Trump Tariff Uncertainty
Challenges in North America
Growing uncertainty from Donald Trump‘s tariffs has had a significant impact on one of the UK’s biggest listed businesses, Bunzl. The company, which provides everyday goods for other firms, has seen its shares plummet more than 25% due to concerns over macroeconomic uncertainty.
Bunzl is a leading international distributor of specialty business products, operating in over 25 countries worldwide.
Founded in 1854 by Sir Alfred Ernest Bunzel, the company has grown significantly through strategic acquisitions and expansions.
Today, Bunzl supplies a wide range of products to various industries, including food service, healthcare, and janitorial services.
The company is headquartered in London, UK, with over 200 locations globally.
Bunzl warned about soft sales in its North American operation, with the chief executive, Frank van Zanten, expressing disappointment with the performance in the first quarter of a challenging trading environment. The company is taking decisive action to improve performance, particularly in its largest business in North America.
Revised Growth Projections
The news has led to revised growth projections for Bunzl, with moderate revenue growth and operating margin expected to end the year below 8%, compared to 8.3% in 2024. The company had previously forecast robust revenue growth this year and an operating margin in line with 2024.
Share Buyback Programme Suspended
Bunzl has also paused its share buyback programme for the remainder of 2025, having already spent £115m on repurchasing its own shares this year. This decision was made in response to the growing uncertainty surrounding Trump‘s trade war and its impact on corporate confidence.
Market Impact
The news has had a significant impact on Bunzl‘s market value, with £2bn wiped off its value on Wednesday. The company’s shares are now the worst performer across the FTSE 100, reflecting the growing concerns over Trump‘s tariffs and their effect on the global economy.
Industry Implications
This development mirrors warnings from other companies in the industry, including recruiter Hays and rival Robert Walters, which have expressed concerns over the impact of US tariffs on hiring markets. The news also follows a similar trend seen with PageGroup, which withheld its financial forecast and implemented cost-cutting measures due to increasingly unpredictable conditions as a result of the trade war.
The United States imposes tariffs on imported goods to protect domestic industries and generate revenue.
Tariffs are taxes levied on foreign-made products, typically expressed as a percentage of the product's value.
The US government uses tariffs to address trade imbalances, enforce trade agreements, and support specific industries.
For instance, steel tariffs were imposed in 2018 to safeguard 'American steel production'.
Tariff rates vary depending on the country of origin and type of goods.
Understanding US tariffs is crucial for businesses, policymakers, and consumers alike.
Global Market Impact
The uncertainty surrounding Trump‘s tariffs has had far-reaching implications for global markets, with European markets opening lower on Wednesday. Asian shares also sold off overnight, with markets in Taiwan, Hong Kong, and South Korea worst hit, falling between 1.2% and 2%.
A global market refers to a network of buyers and sellers from various countries that engage in the exchange of goods, services, and capital.
It encompasses various sectors, including finance, trade, and industry.
According to the World Trade Organization (WTO), international trade accounts for over 25% of global GDP.
The growth of global markets has been driven by technological advancements, increased mobility, and economic integration.
