Trump’s threatened tariffs on Mexican goods put these 11 highly exposed stocks at risk, Goldman Sachs says

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Ford Focus Electric Car
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Ford

Wall Street’s warnings about President Donald Trump’s newly proposed tariffs on imports from Mexico are pouring in.

As strategists and economists warn investors that the proposed duties pose a major threat to the US stock market, Goldman Sachs strategists are pinpointing which names could be particularly vulnerable.

In a new report, the firm broke out the 25 companies in the Russell 1000 index, comprised of large-cap US-listed stocks, that explicitly report assets in Mexico. As a result, they could face larger-than-average headwinds if the tariffs take effect on June 10.

The list is unsurprisingly skewed toward companies that manufacture auto parts, electric equipment, and building products. Skyworks Solutions tops the list, with a whopping 39% of its reported assets in Mexico. Nearly 14% of new passenger-vehicle imports and just over 37% of auto parts shipped to the US last year came from Mexico, according to the Department of Commerce.

Notably, the largest companies on the list – Pepsi and AT&T – are among the companies in the index that report some of the smallest portions of their assets in Mexico. Smaller companies like the $3 billion Sensata Technologies report much higher percentages.

“Investors have been quick to price the risk to some companies exposed to the newly-proposed tariffs on Mexico imports,” the strategists led by Ben Snider wrote on Friday.

Goldman includes the caveat that not all the firms will be affected by the proposed tariffs, and many firms that face risk from the tariffs are absent from the list. Still, the average stock on the list lagged the index by 200 basis points on Friday, they said. Skyworks, for its part, fell 2.4% while the S&P 500 shed 1.3%.

“Autos and auto components, which represent the largest US import from Mexico, have suffered even more, lagging the broad market by nearly 300 bp today,” the strategists said on Friday.

Here’s a breakdown of the top 11 stocks on Goldman’s list, ranked by the companies’ percentage of assets reported in Mexico:


Skyworks Solutions

source
Justin Sullivan

Ticker: SWKS

Sub-industry: Semiconductors

Percentage of assets in Mexico: 39%

Market cap: $12 billion

Source: Goldman Sachs


Kansas City Southern

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zhengxu/Flickr

Ticker: KSU

Sub-industry: Railroads

Percentage of assets in Mexico: 38%

Market cap: $12 billion

Source: Goldman Sachs


Sensata Technologies

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Westend61/Getty Images

Ticker: ST

Sub-industry: Electrical components and equipment

Percentage of assets in Mexico: 26%

Market cap: $7 billion

Source: Goldman Sachs


Lear Corporation

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Wang He/Getty Images

Ticker: LEA

Sub-industry: Auto parts and equipment

Percentage of assets in Mexico: 24%

Market cap: $8 billion

Source: Goldman Sachs


Regal Beloit

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MilanMarkovic78/Shutterstock

Ticker: RBC

Sub-industry: Electrical components and equipment

Percentage of assets in Mexico: 23%

Market cap: $3 billion

Source: Goldman Sachs


Lennox International

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Terravivos.com

Ticker: LII

Sub-industry: Building products

Percentage of assets in Mexico: 21%

Market cap: $11 billion

Source: Goldman Sachs


Pilgrim’s Pride

Ticker: PPC

Sub-industry: Packaged foods and meats

Percentage of assets in Mexico: 14%

Market cap: $6 billion

Source: Goldman Sachs


Fortune Brands and Home & Security

Ticker: FBHS

Sub-industry: Building products

Percentage of assets in Mexico: 13%

Market cap: $7 billion

Source: Goldman Sachs


Crown Holdings

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Flickr/frankieleon

Ticker: CCK

Sub-industry: Metal and glass containers

Percentage of assets in Mexico: 12%

Market cap: $8 billion

Source: Goldman Sachs


Adient

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REUTERS/ Nacho Doce

Ticker: ADNT

Sub-industry: Auto parts and equipment

Percentage of assets in Mexico: 10%

Market cap: $2 billion

Source: Goldman Sachs


Johnson Controls International

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REUTERS

Ticker: JCI

Sub-industry: Building products

Percentage of assets in Mexico: 9%

Market cap: $35 billion

Source: Goldman Sachs


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Eugene Hoshiko/Getty; Reuters

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