Shares of biotechnology company Illumina (ILMN) experienced a significant 5.11% drop in pre-market trading on Tuesday, February 4th. This sharp decline appears to be driven by escalating trade tensions between the United States and China.
In retaliation against the U.S. government's imposition of a 10% tariff on Chinese goods, China swiftly announced its own tariffs targeting various American exports. These include a 15% levy on U.S. coal and liquefied natural gas (LNG) exports, as well as a 10% tariff on crude oil and agricultural machinery.
More significantly for Illumina, China's Commerce Ministry announced that it had added the biotechnology company, along with apparel firm PVH Corp., to its "unreliable entity list". This decision was based on allegations that these companies had taken "discriminatory measures against Chinese enterprises" and "damaged" the legitimate rights and interests of Chinese companies.
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