Trump threatens China, Mexico and Canada with new tariffs

Given the announcement of new tariffs, companies with significant exposure to imports from Mexico, Canada, and China might experience increased costs, potentially leading to decreased profitability. Stocks in sectors like manufacturing, retail, and consumer goods may face negative pressure due to higher prices for goods. Additionally, while companies reliant on exports to Mexico and Canada might see trade disruptions, those in the commodity sector, particularly energy, might benefit from reduced competition as domestic suppliers take precedence.

Conversely, companies such as domestic manufacturing firms or local suppliers may benefit from the tariff situation as it could drive demand for locally produced goods, resulting in potential growth opportunities. Investors might consider looking into stocks associated with domestic production and manufacturing, which could outperform in a protective trade environment.