US President Donald Trump’s tariffs on Mexico, Canada, and China have created a challenging situation for American companies that rely heavily on imports from these countries. The levies are expected to negatively impact the US economy, pushing inflation upward.
Goldman Sachs estimates that the tariffs will increase core prices by 0.7% and hit gross domestic product by 0.4%. This could affect major industries such as fashion, where retailers like Boot Barn face risks due to its imports from China and Mexico. Additionally, automakers are concerned about the impact of tariffs on their business strategies.
Ford Motor and General Motors are among the companies that will be “extremely challenged” by the tariffs, according to Bank of America analyst John Murphy. The 25% tariff on Mexican and Canadian imports could result in an additional $50 billion in costs for the auto industry.
The spirits industry is also at risk, with Mexico accounting for 83% of US beer imports and nearly half of spirits imports by volume. Analysts warn that tariffs could lead to margin compression for companies like Constellation Brands, which relies heavily on its Mexican import portfolio. The company’s beer sales are expected to be particularly affected.
The potential impact on inflation is further downside risk for these industries, as widespread use of import tariffs could lead to stronger US inflation and pressure on the already fragile US consumer.
Source: https://www.cnbc.com/2025/02/01/here-are-the-stocks-that-will-be-hurt-the-most-from-trumps-new-tariffs.html