Live: Trump tariffs on Canada, Mexico paused for a month, China duties set to take effect Tuesday

The imposition of tariffs is likely to have a negative impact on companies that are heavily reliant on imports from affected countries, particularly those in the automotive and tech sectors. Tariffs could increase costs and reduce margins, leading to lower stock performance in the affected areas. Companies such as General Motors (GM) and Ford (F) are likely to be impacted negatively, and a broader technology sector downturn could affect stocks like Qualcomm (QCOM) and Nvidia (NVDA). The risk of retaliatory tariffs is also significant, which could further hurt revenues for U.S. companies that rely on international trade.

Despite the tariffs causing uncertainty, some companies like Tyson Foods (TSN) are prepared to mitigate short-term disruptions and leverage adjustments in their guidance due to tariffs being priced in. Companies that can pass on costs to consumers may fare better in this environment. However, overall, the sector might still be negatively affected depending on the breadth of the tariffs and any retaliatory measures that follow.

Retail and consumer goods companies sourcing heavily from the impacted regions may face increased costs, which they might pass onto consumers. This could lead to decreased demand for some products if consumers are sensitive to price increases. Companies like Constellation Brands (STZ) and Mission Produce (AVO) could see a negative impact as costs escalate due to the tariffs, which may lead to reduced earnings projections impacting stock performance.