Shares that were hit the most from Trump’s tariffs before Mexico Reprieve

The US stock market was shaken Monday after President Donald Trump started a possible global trade war. Shares of companies that span car, industrial, retail and beverage industry with international supply chains were affected in particular.

Trump on Saturday, a 25% duty on goods from Mexico and Canada escaped while adding a 10% tax on imports from China. The president said on Monday he pauses the Mexico tariffs for a month after Mexican President Claudia Sheinbaum immediately agreed to send 10,000 soldiers to his country’s border to prevent drug trafficking. Trump also increased his customs threats against the European Union.

Tariffs could not only increase the cost of transporting goods across borders, they could also interfere with supply chains and shrink business. Goldman Sachs warned that Trump’s recent action could cause a 5% sale in US equities due to hit to company earnings. Here are some of the most affected industries and shares:

Car manufacturers

These tariffs can have a significant impact on the global automotive industry, which has a great deal of dependence on manufacturing operations throughout North America.

Detroit’s large three car manufacturers – General MotorsAt Fordand Stellantis – Could feel the pain of disturbed supply chains as a result of customs and may be forced to change production from foreign factories to the United States.

Food and drink

Constellation marksA major importer of alcohol from Mexico, leads a sale among liquor stocks.

Canada has threatened to pull US alcohol from its government -driven spirits of spirits in response to Trump’s 25% duty.

Restaurant chain Chipotle Mexican grill and Avocado Company Calavo breeders Could feel the pain of more expensive supplies as these companies import the avocado from Mexico.

Retailers

Sports clothing marks Nike and Lululemon May be vulnerable to Trump’s tariffs because of their heavy dependence on Chinese imports, including drugs. Their significant business in China could also be injured by the negative mood of the trade war.

Discount dealers such as Five below and Dollar general Could be among the hardest affected companies, as imports from China usually make up a significant portion of their sales. Another victim could be Canada GooseA Canada-based luxury outerwear company.

Railways

Tariffs can be harmful to rail operators as heavy tasks could slow down the flow of goods transported to the United States, which damages their income and profits.

Union Pacific Corporation Moves shipping to and from the Atlantic coast, Pacific coast, southeast, southwest, Canada and Mexico. Norfolk Southern and Canadian Pacific Kansas City are also exposed to the tariffs.

Chinese e-commerce

Trump’s tariffs also targeted a trade provision that helped burn the explosive growth of budget online dealers, including TEMU. The orders against China, Canada and Mexico all stop a trade exemption, known as “de minimis”, which allows exporters to send packages worth less than $ 800 to the US duty free.

PDD Holdings-owned Temu and Alibaba’s AliExpress may no longer be able to take advantage of the loophole to sell cheap clothes, household items and electronics.