UK Investors Poured Billions into US Stocks Ahead of Trump Tariff Shock
UK investors heavily increased their exposure to U.S. stocks in March, just before President Donald Trump’s surprise announcement of sweeping trade tariffs sent markets tumbling, according to new data from funds network Calastone.
LONDON, April 8 — UK investors heavily increased their exposure to U.S. stocks in March, just before President Donald Trump’s surprise announcement of sweeping trade tariffs sent markets tumbling, according to new data from funds network Calastone.
North American equity funds, primarily focused on U.S. stocks, saw £1.8 billion ($2.3 billion) in net inflows from UK investors—marking the third-best month in a decade. The surge was partly driven by a seasonal uptick in investing ahead of the UK tax year-end on April 5, and by investors attempting to "buy the dip" after a weak start to the year for U.S. equities.
However, the rally came just before Trump’s tariff announcement last Wednesday, which led to sharp declines in global markets.
“There’s a contradiction in strong UK demand for U.S. equities while global flows are moving away from the U.S. and into regions like Europe and the UK,” said Edward Glyn, Head of Global Markets at Calastone.
Retail investors have been quick to respond to market dips. On Thursday alone, they purchased $4.7 billion worth of stocks—the highest one-day amount in over a decade, according to JPMorgan.
Calastone noted unusually high trading volumes both into and out of U.S. stocks in March, reflecting investor uncertainty about the market’s direction. While overall equity funds attracted £1.4 billion in net inflows, UK-focused equity funds saw net outflows of £1.2 billion.
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