Shares of Blackstone Group LP (BX) plummeted 6.90% in pre-market trading on Friday, as the alternative asset management giant faced multiple headwinds. The sharp decline comes amid an escalating trade war between the US and China, which has sent shockwaves through the financial sector, particularly affecting asset managers.

China's finance ministry announced retaliatory tariffs of 34% on all US goods, set to take effect from April 10. This move has sparked fears of a prolonged market downturn, which could significantly impact asset managers like Blackstone. The company, along with its peers in the industry, is vulnerable to potential drops in management fees, which are often tied to the value of assets under management.

Adding to the pressure, Bank of America Global Research cut its price objective on Blackstone from $219 to $207, signaling potential challenges ahead for the company. Furthermore, reports emerged that Blackstone is considering the sale of two AirTrunk data centers in Australia, each valued at approximately 2 billion Australian dollars ($1.24 billion). While asset sales are common in Blackstone's business model, the timing of this potential move may have contributed to investor uncertainty.

As the market grapples with the implications of the escalating trade war and its potential impact on global economic growth, Blackstone and other asset managers find themselves at the forefront of investor concerns. The company's stock performance in the coming days will likely depend on further developments in the US-China trade negotiations and any additional company-specific news.