Blackstone Group LP (BX) saw its shares plummet 5.34% in pre-market trading on Thursday, as the escalation of the US-China trade war rattled investors and hit asset managers particularly hard.

The decline in Blackstone's stock price comes amid a broader selloff in the asset management sector. Other major players in the industry also experienced significant drops, with KKR down 3.8%, Apollo Global Management falling 2.8%, and Franklin Resources declining 2.3% in pre-market trading.

The primary catalyst for this downturn appears to be the latest developments in the ongoing trade dispute between the United States and China. Despite a temporary reprieve announced by President Trump on Wednesday, which involved lowering tariffs on dozens of countries, he simultaneously increased tariffs on China to 125% from 104%. This escalation has fueled uncertainty in the markets, potentially leading to an extended downturn that could directly impact asset managers' fees, which are often tied to the value of assets under management.