Threat of Mexican tariffs, US companies in the crossfire
(AP) – The surprise announcement by President Donald Trump of an escalating tariff regime against Mexico is sending ripples through almost every economic sector in the U.S., pulling at the shares of companies that make cars, operate railroads, or sell anything with produce.
And whether it’s avocadoes on a taco or a new Chevrolet Blazer SUV in the driveway if the tariffs go into effect, Americans could feel it.
Shares of General Motors, which imports more vehicles into the U.S. than any other U.S. automaker, tumbled more than 5% Friday. Kansas City Southern operates a commercial corridor of the Mexican railroad system and owns a track between Mexico City and Laredo, Texas. It gets almost half its revenue from Mexico each year. Its shares are down 6%.
Chipotle shares are falling, too.