NEW YORK (AP) — Stocks across various industries are declining on Wall Street today due to President Donald Trump’s threats of imposing tariffs. Automakers, technology companies, and retailers are all experiencing losses as trade tensions persist between the U.S., Mexico, Canada, and China. Trump recently announced plans for 25% tariffs on imports from Canada and Mexico as well as 10% tariffs on imports from China. However, the tariffs on Mexico have been postponed for a month to facilitate further negotiations. Let’s take a closer look at the sectors most impacted by the ongoing trade disputes:
Automotive Industry:
The automotive sector is facing significant challenges ahead due to the interconnected production processes among nations affected by tariffs. Companies like General Motors, Ford, Stellantis, and Tesla have all seen declines in their stock prices. For instance, in 2024, 22% of all light vehicles sold in the U.S. were imported from Mexico. General Motors and Ford source a significant portion of their vehicles from Mexico. This uncertainty is also affecting auto parts companies like Visteon, Aptiv, and Goodyear Tire.
Alcoholic Beverage Makers:
Liquor, beer, and alcoholic beverage manufacturers are feeling the pressure from potential tariffs. Constellation Brands, Molson Coors, Brown-Forman, and Diageo are among the companies experiencing stock declines. Constellation Brands, in particular, is sensitive to trade issues as it imports beer brands from Mexico to the U.S.
Technology Sector:
Big Tech companies are facing additional pressure as tariffs impact their operations. Nvidia and Apple, which rely on China for production and sales, have seen drops in their stock prices. For example, Nvidia generates nearly 39% of its revenue from China, while Apple derives about 16% of its revenue from the country.
Retail Industry:
Clothing and other retailers heavily reliant on imports from China, Mexico, and other countries are vulnerable to tariffs. Companies like Nike and Best Buy have experienced stock declines as they rely on overseas production and sales for their products.
Construction Sector:
Homebuilders are grappling with higher costs if building materials like wood become more expensive due to tariffs. Companies like Lennar and Toll Brothers have seen their stock prices decline amid concerns about rising construction costs.
Overall, the market is reacting to the uncertainties surrounding trade negotiations and the potential impact of tariffs on various sectors.
