Trump plans to raise tariffs to 15%, trade-sensitive stocks collectively plummet, with the retail and industrial sectors leading the decline
Trump stated that he would raise the U.S. global tariff rate to 15%, causing market risk sentiment to rapidly escalate. UBS Global Trade Exposure stock basket once fell by 4.1%, with retail stocks such as Gap, American Eagle, and Wayfair leading the decline, while the industrial and automotive sectors also weakened. COMEX gold futures surged by 3%, and gold and silver stocks collectively strengthened
U.S. retail and industrial stocks fell on Monday after President Trump announced plans to raise the U.S. global tariff rate to 15%.
Media reports indicated that a basket of stocks with high exposure to global trade compiled by UBS fell 4.1%, marking the largest intraday drop since November 6. The biggest losers included Gap, which dropped 9.1%, American Eagle down 8.7%, and Wayfair down 9.2%.
Last Friday, after the U.S. Supreme Court rejected Trump's large-scale global tariff policy, the stock basket had risen by 1.3%. Just hours after the ruling, Trump initially imposed a 10% global tariff on foreign goods, attempting to maintain what he believes are crucial tariff measures for the economy and national security.
On Monday, the S&P 500 index fell 1.16%, and the Nasdaq 100 index dropped 1.32%. In the apparel and activewear sector, Nike fell 4.9%, Victoria's Secret dropped 8.6%, Abercrombie fell 6.8%, Lululemon dropped 4.9%, and Under Armour fell 6.9%.
In the home decor, flooring, and furniture retail sector, aside from Wayfair, RH fell 7.2%, and Floor & Decor Holdings dropped 4.3%.
Among industrial companies heavily impacted by tariffs in the industrial and automotive sectors, Stanley Black & Decker fell 4.9%, and CNH Industrial dropped 2.5%.
Although Trump imposed tariffs on automobiles based on another law not under review by the Supreme Court, and the new round of tariffs has not directly affected the automotive industry, the related rulings and new tariff measures could have a ripple effect on auto parts suppliers.
On Monday, among automakers, General Motors fell 3.6%, Ford dropped 3%, and Stellantis fell nearly 2%. In the auto parts sector: Sonic Auto fell 6.8%, Aptiv dropped 3.9%, Group 1 Auto fell 3.6%, and Asbury Auto dropped 3.6%.
In the precious metals sector, due to rising concerns over the uncertainty of U.S. trade policies, the dollar weakened, and gold and silver prices increased. COMEX gold futures rose 3%, with New York gold increasing by 3.0%, reported at $5,233.9 per ounce In terms of related stocks, Silvercorp Metals rose by 6.3%, Equinox Gold rose by 4.9%, Agnico Eagle Mines rose by 4.6%, Barrick rose by 4.2%, and Kinross rose by 4%
