By Mackenzie Tatananni

Illumina stock slid Tuesday after China banned imports of the biotech's gene- sequencing machines as part of a broader retaliatory response to U.S. tariffs.

Shares of Illumina slipped 3.5% to $81.29 in early trading.

President Donald Trump's 10% tax on Chinese imports went into effect today, compounding the 10% tariffs imposed in February. China swiftly reacted, with the country's finance ministry announcing 15% tariffs on imports of certain agricultural products.

In other measures, which include the ban on imports of gene sequencers, China placed 15 U.S. firms on its export control list and added 10 more companies to its unreliable-entity list.

Beijing placed the San Diego-based biotech, which makes machines that allow researchers to study genetic variations associated with disease, on its list of unreliable entities last month.

Illumina said at the time that it was working to find a solution. "We respect and abide by Chinese laws and regulations," the company said in a statement, adding that it appreciates "the Chinese government's long-term support for foreign investors, including Illumina. "

Revenue attributed to China has declined for the past three years, falling 6% in 2022, 18% in 2023, and, most recently, 20% in 2024.

Shares of the biotech were hammered in February after Trump proposed sweeping cuts to federal funding for medical research.

Illumina stock closed down 10% on Feb. 7, the day the National Institutes of Health announced that it would cap payments for the indirect costs of research, which includes lab equipment.

Shares has only fallen further since then. As of premarket trading Tuesday, Illumina was down 28% since the NIH's announcement.

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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March 04, 2025 09:38 ET (14:38 GMT)

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