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US President Donald Trump is holding an executive order, “leting the prosperity release by Deregulation”, which he signed on January 31, 2025 in Washington, DC in the Oval Office, while also spoke with reporters about rates against China, Canada and Mexico.
Chip Somodevilla | Getty Images News | Getty images
The US stock market was turned upside down on Monday after President Donald Trump started a possible global trade war. Shares of companies that span the car, industrial, retail and beverage industry with international supply chains were struck particularly hard.
On Saturday, Trump hit a rate of 25% on goods from Mexico and Canada, while adding a 10% levy on import from China. The president said on Monday that he pauses the Mexico rates for a month after the Mexican President Claudia Sheinbaum agreed to immediately send 10,000 soldiers to the border of her country to prevent drug trafficking. Trump also raised his tariff threats for the European Union.
Rates could not only increase the costs of transporting goods across the borders, they can also disrupt the supply chains and disrupt the trust of companies. Goldman Sachs warned that Trump’s newest action could cause a sale of 5% in US shares because of the hit for the income of the company. Here are some of the most affected industries and shares:
Car manufacturers
These rates can have a material impact on the global car industry, which has a heavy dependence on production activities in North America.
Detroit’s Big Three Car Makers – General Motors” FordAnd Stellantis – Could feel the pain of disturbed supply chains as a result of rates and it is possible to be forced to move the production of foreign factories to the United States.
Automakers are crushed
Eat and drink
Constellation brandsA large importer of alcohol from Mexico, leads a sale between drink stocks.
Canada has threatened to extract American alcohol from his government -run drink shelves in response to Trump’s 25% rates.
Restaurant chain Chipotle Mexican grill and avocado company Calavo -Tellers Could feel the pain of more expensive supplies, because these companies import avocados from Mexico.
Retailers
Sportswear -brands Nike And Lululemon Could be vulnerable to Trump’s rates because of their heavy dependence on Chinese import, including substances. Their considerable activities in China can also be hurt by the negative sentiment of the trade war.
Discount Retailers such as Five below It can be one of the most difficult companies, because the import from China usually makes a significant part of their turnover. Dollar general Shares were initially sold on tariff news but ended up in the Green on Monday. Dollar General has set its direct import percentage to 4% in 2023. Another victim could be Canada GooseA luxury outerwear in Canada.
Railways
Rates can be harmful to rail operators, because heavy tasks can delay the flow of goods to the US and harm their income and profit.
Pacific
Union Pacific Corporation Move freight to and from the Atlantic coast, the Pacific coast, the southeast, the southwest, Canada and Mexico. Norfolk Southern And Canadian Pacific Kansas City are also exposed to the rates.
Chinese e-commerce
Trump’s rates were also aimed at a trade supply that helped feed the explosive growth of online retailers of budget, including Temu. Orders against China, Canada and Mexico all stop a commercial exemption, known as “De Minimis”, with which exporters can send packages worth less than $ 800 in the American tax -free.
PDD holding property Temu and Alibaba’s AliExpress may no longer be able to benefit from the Maas in the Maas to sell cheap clothing, household items and electronics.
PDD Holdings
Clarification: This story has been updated to clarify that Dollar General set its direct import percentage to 4% in 2023.