The 25th President of the United States, William McKinley, led the country during the Spanish-American war and created an empire stretching from the Philippines to Puerto Rico. But he is best known as a fierce advocate of tariffs.
That enthusiasm lasted from 1890 to 1901, when, on the eve of his assassination, McKinley had a change of heart.
Donald Trump is a McKinley fan, calling him the ‘tariff king.’ However, it took the current US President just seven days to change his tune on tariffs, introducing a 90-day reprieve for many nations in the face of financial mayhem.
Markets bounced back as Trump recanted but the relief was temporary, as the White House upped the ante on China and its president, Xi Jinping, unleashed a raft of tariff missiles in response.
It took Donald Trump just seven days to change his tune on tariffs, introducing a 90-day reprieve for many nations in the face of financial mayhem
There are, however, some London-listed businesses that are better placed than most to withstand the ups and downs of Trump’s tariff tantrums.
And our selection below look like bargains at current prices.
With a significant presence in the US, they are either sheltered from onerous new import taxes or embedded in American corporate life.
Spectra Systems
Spectra Systems is based in Rhode Island on America’s East Coast. Founded by former Nasa scientist Nabil Lawandy, it helps central banks, customs officers and government agents to detect whether banknotes and passports are genuine.
The group, listed on the junior Aim market, developed a powder that is inside banknotes and can be spotted only with its highly sophisticated sensors.
Known as a Level III covert feature offering the highest level of security, this is the most reliable way to spot fake cash – a crucial tool to combat criminal gangs, terrorists and money launderers.
Lawandy has been sworn to secrecy by most customers, but they include some of the best-known financial institutions in the world and business is brisk.
Spectra sensors can authenticate up to 40 banknotes per second, significant contracts have been signed in recent months and more are under way.
Spectra cut its teeth in the paper note market but has now pioneered a way of incorporating Level III security into plastic notes as well, an area that should yield substantial growth.
Brokers expect Spectra profits to double this year to $25 million and dividends are rising too, with 11.7 cents pencilled in for 2025, up from 11.6 cents last year.
Despite robust prospects and a business that is barely touched by tariffs, Spectra shares have fallen more than 10 per cent to £2.16 since Trump’s inauguration. They should recover from here, making the stock a canny buy for long-term investors.
Traded on: Aim
Ticker: SPSY
Contact: spsy.com
Public Policy Holding Company
Public Policy Holding Company is another Aim-listed business whose roots and operations are firmly based in the US.
Headquartered in Washington DC, the group specialises in public affairs – helping companies and industries to navigate the US political maze. Right now they need all the help they can get, and PPHC boss Stewart Hall is upbeat about the future.
The company joined Aim in 2021 with a view to expanding in America and abroad. Over the past few years, Hall and his team have done just that, growing both organically and through acquisition, to create a business with 1,200 customers, including a quarter of America’s Fortune 500 top firms.
Only this month, PPHC bought Texas-based TrailRunner, an expert in corporate advice, reputation and crisis management.
Further deals are likely, as public affairs is a fragmented market and there are opportunities aplenty to snap up small firms.
Brokers expect a 21 per cent increase in revenues to $182 million this year, rising to $200 million in 2026. Profits should rise around 18 per cent to $41 million this year, with further strong growth down the line and decent dividends too.
Hall is determined to build a business with $500 million revenues, and analysts are confident that he will achieve his ambition over the coming years.
PPHC is bipartisan, focused on helping companies to negotiate with whoever is in the White House. Tumultuous times should be good for business, however.
PPHC is the top lobbying firm in the US, Hall is ambitious and the stock looks attractive at £1.32.
Traded on: Aim
Ticker: PPHC
Contact: pphcompany.com
With a significant presence in the US (New York City, pictured), these London-listed businesses are either sheltered from onerous new import taxes or embedded in American corporate life
4imprint
4imprint shares have almost halved since Trump took office, slumping from £60 to £31.45 in little more than three months.
Founded in Manchester selling promotional goods via catalogue, the business is now based in Oshkosh, Wisconsin, and most of its revenues come from 100,000 customers in North America.
Orders topped 2.1 million last year, from mugs to pens and caps. Firms use this kit to reward employees, suppliers and customers. Prices are low, quality is sound and service is speedy. Many goods are made in Asia, fuelling fears 4imprint will suffer from rising costs coupled with falling demand from cash-strapped customers.
Chief executive Kevin Lyons-Tarr has been here before. A 4imprint veteran, the 60-year-old has been at the helm for a decade, during which time sales have more than tripled, profits have soared five-fold and the dividend has risen from 32.4 cents to $2.50, with a $1.93 special payout added to the mix last year.
Brokers predict a resilient performance this year, with sales barely changed at $1.37 billion and profits slightly down at $150 million and a core dividend of around $2.30. But the company has spent years working with suppliers and should be able to mitigate at least some of the curveballs lobbed from Capitol Hill.
Lyons-Tarr admits it is too early to gauge the full impact of tariffs on his business, but City brokers are in agreement – the share price woefully undervalues 4imprint’s past record and future prospects. Investors who take the plunge now, at £31.45, should be rewarded.
Traded on: Main market
Ticker: FOUR
Contact: 4imprint.com
National Grid
National Grid owns the pylons, cables and substations that distribute electricity in England and Wales. But it is a major US business too, supplying power to more than 20 million homes in New York and Massachusetts.
Big changes have been delivered on both sides of the Atlantic, which should contribute to a step-change in growth over the next five years.
Here, a £60 billion investment plan is expected to create a business better placed to deal with future energy needs. There, upgrades are under way and non-core offshoots are being let go.
Focus and expansion should drive sustained dividend growth, and 46p is expected for the year to March 31, rising to 47p next year. With the shares at £10.16, the stock is yielding 4.5 per cent, making this a solid, all-round investment.
Traded on: Main market
Ticker: NG
Contact: nationalgrid.com
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