Shares of Blackstone Group LP (BX) plunged 6.42% in pre-market trading on Thursday, as the asset management sector faced multiple headwinds. The steep decline comes in the wake of U.S. President Donald Trump's announcement of new tariffs and amid ongoing uncertainties surrounding potential deals and market conditions.

The primary catalyst for the selloff appears to be Trump's declaration of a 10% baseline tariff on all U.S. imports, with higher reciprocal duties planned for major trading partners, including China. This move has sparked fears of an escalating trade war and potential economic instability, putting significant pressure on asset managers whose fees are often tied to the value of assets under management. Analysts at Bank of America warned of increased risks of stagflation due to the escalating trade tensions and federal spending cuts.

Adding to Blackstone's woes, Goldman Sachs adjusted its price target for the company to $153 from $160, while maintaining a neutral rating. This adjustment, coupled with the broader market concerns, has likely contributed to investor unease. Furthermore, ongoing uncertainty surrounding Blackstone's potential involvement in the TikTok deal, amid reports of new competitors like Amazon entering the fray, may be adding to the downward pressure on the stock. As the deadline for TikTok's U.S. operations looms, the complex nature of the negotiations and associated risks appear to be weighing heavily on investor sentiment towards Blackstone.