Stocks from automakers to retailers feel pressure from tariff threats
Companies in a wide range of industries are seeing their stocks come under pressure on Wall Street because of tariff threats from President Donald Trump
NEW YORK — Companies in a wide range of industries are seeing their stocks come under pressure Monday on Wall Street because of tariff threats from President Donald Trump.
Automakers, technology companies and retailers all fell as the U.S., Mexico, Canada and China wrangled over tariffs. Trump said over the weekend that 25% tariffs on imports from Canada and Mexico would go into effect Tuesday, along with 10% tariffs on imports from China. But the tariffs against Mexico have been delayed for a month to allow for negotiations.
Here's a look at the sectors of the stock market most affected by a trade war:
The automotive sector faces a bumpy road ahead. The industry’s production processes are heavily intertwined throughout the nations impacted by tariffs.
General Motors fell 3.3% and Ford slipped 2%. Stellantis slipped 3.9% and Tesla fell 6.1%.
In 2024, 22% of all light vehicles sold in the U.S. were imported from Mexico, according to S&P Global Mobility. General Motors sources about 22% of its vehicles and Ford sources 15% of its vehicles from Mexico.
The tariff threat is also dragging down auto parts companies. Visteon, which has significant business relationships with Ford, General Motors and Volkswagen, fell 4.2%. Aptiv fell 3.7% and Goodyear Tire fell 3.8%.
Liquor, beer and alcoholic beverage makers are under pressure from potential tariffs. Authorities in several Canadian provinces are already retaliating by planning to remove American liquor brands from government store shelves.
Constellation Brands fell 2.6%. The company is particularly sensitive to trade issues.
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