Finance

Stocks that are getting hit the most from Trump’s tariffs Monday include GM, Chipotle and Canada Goose

Published

2 months ago

February 3, 2025

U.S. President Donald Trump hold up an executive order, “Unleashing prosperity through deregulation,” that he signed in the Oval Office on January 31, 2025 in Washington, D.C., while also speaking to reporters about tariffs against China, Canada and Mexico.

Chip Somodevilla | Getty Images News | Getty Images

The U.S. stock market was rocked as President Donald Trump kicked off a possible a global trade war. Shares of companies spanning the auto, industrial, retail and beverage industries with international supply chains were hit particularly hard.

Trump on Saturday slapped a 25% tariff on goods from Mexico and Canada, while adding a 10% levy on imports from China. Canada responded with retaliatory tariffs of its own, while Mexico said it would explore levies on U.S. imports. Trump also ramped up his tariff threats to the European Union.

Tariffs could not only increase the cost of transporting goods across borders, they could also disrupt supply chains and crimp business confidence. Goldman Sachs warned that Trump’s latest action could cause a 5% sell-off in U.S. stocks due to the hit to corporate earnings. Here are some of the most affected industries and stocks:

Automakers

These tariffs could have a material impact on the global automotive industry, which has a heavy reliance on manufacturing operations across North America.

Detroit’s big three car makers — General Motors, Ford, and Stellantis — could feel the pain from disrupted supply chains as a result of tariffs and may be forced to shift production from foreign factories to the United States.

Automakers getting crushed

Food and beverage

Constellation Brands, a large importer of alcohol from Mexico, is leading a sell-off among booze stocks. Also Canada has threatened to pull American alcohol from its government-run liquor shelves in response to Trump’s 25% tariffs.

Restaurant chain Chipotle Mexican Grill and avocado company Calavo Growers could feel the pain from more costly supplies as these companies import avocados from Mexico.

Retailers

Sportswear brands Nike and Lululemon could be vulnerable to Trump’s tariffs because of their heavy reliance on Chinese imports, including fabrics. Their sizable business in China could also be hurt by the negative sentiment from the trade war.

Discount retailers like Five Below and Dollar General could be among the hardest hit businesses as imports from China usually make up a significant portion of their sales. Another victim could be Canada Goose, a Canada-based luxury outerwear firm.

Railroads

Tariffs could be damaging to railroad operators as heavy duties could slow the flow of goods being transported to the U.S., hurting their revenue and profits.

Union Pacific

Union Pacific Corporation is a railroad company that moves freight to and from the Atlantic Coast, the Pacific Coast, the Southeast, the Southwest, Canada and Mexico. Norfolk Southern, and Canadian Pacific Kansas City are also exposed to the tariffs.

Chinese e-commerce

Trump’s tariffs also targeted a trade provision that helped fuel the explosive growth of budget online retailers, including Temu. The orders against China, Canada and Mexico all halt a trade exemption, known as “de minimis,” which allows exporters to ship packages worth less than $800 into the U.S. duty free.

PDD Holdings-owned Temu and Alibaba‘s AliExpress may no longer be able to take advantage of the loophole to sell cheap apparel, household items and electronics.

PDD Holdings

Finance

Digital bank Bunq accelerates US expansion effort as profit jumps

Published

2 hours ago

April 15, 2025

Business Finance News

Dutch digital bank Bunq is plotting re-entry into the U.K. to tap into a “large and underserved” market of some 2.8 million British “digital nomads.”

Pavlo Gonchar | Sopa Images | Lightrocket | Getty Images

Dutch digital bank Bunq on Tuesday said it’s filed for broker-dealer registration in the U.S. as it looks to further expand across the Atlantic.

Bunq CEO Ali Niknam said the broker-dealer application will be an initial step toward securing a full banking license. He couldn’t offer a firm timeline for when Bunq will secure this authorization in the U.S. — but said he’s excited for its growth prospects in the country.

Obtaining a broker-dealer license will mean Bunq “can offer our users who have an international footprint — which is the user demography we’re aiming for — a great number of our services,” Niknam told CNBC. Bunq mainly caters for “digital nomads,” individuals who can live and work from anywhere remotely.

Bunq will be able to offer most of its services in the U.S. with the exception of a savings account after securing broker-dealer authorization, Niknam added.

Bunq, which touts itself as a bank for “digital nomads,” currently has a banking license in the European Union. It has applied for an Electronic Money Institution (EMI) in the U.K. Bunq previously had operations in Britain but forced to withdraw from the country in 2020 due to Brexit.

Bunq initially filed for a U.S. Federal bank charter in April 2023. However, it withdrew the application a year later, citing issues between its Dutch regulator and U.S. agencies. The company plans to resubmit its application for a full U.S. banking license later this year.

65% jump in profit

Beyond the update on international expansion, Bunq also on Tuesday reported a 65% year-over-year jump in profit to 85.3 million euros ($97.2 million). That jump was primarily driven by a 55% increase in net interest income, while net fee income also grew 35%.

Similarly to fintech peers such as N26 and Monzo, Bunq has benefited from a high interest rate environment by pocketing yields on customer deposits sat at the central bank.

Bunq’s CEO told CNBC that, while high interest rates have certainly helped, more generally Bunq is seeing increased usage of the platform and has been focused on cost efficiency from an operational perspective.

“Because we are so lean and mean, and because we have set up all of our systems from scratch … we have been able to not only increase our profits, but also offer very good interest rates in the European market in general, and in the Netherlands specifically,” Niknam said.

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More recently, central banks in the EU and U.K. and U.S. have moved to slash interest rates in response to falling inflation and concerns of an economic slowdown, which can bite into bank earnings.

Niknam said he’s not concerned by the prospect of rates coming down and expects potential declines in interest income to be offset by a “diversified” revenue mix that includes income from paid subscription products, as well as new features. Bunq recently launched a tool that lets users trade stocks.

“This is different in continental Europe to the U.K. We had negative interest rates for long,” Niknam told CNBC. “So as we were growing, actually our cost base was also growing because we had to pay for all the deposits that people deposited a Bunq so I think we’re in a great position in 2025

Bunq is coming up against heaps of competition, especially in the U.S. market. America is already served by established consumer banking giants, including JPMorgan Chase, Bank of America, Wells Fargo and Citigroup. It’s also home to several major fintech brands, such as Chime and Robinhood.