Investing during a trade war is a moving target even in the best of times, and straight-up impossible at the worst. But there are some early winners and losers from the latest round of US vs. China: Tariff Showdown.
Over the past decade, many of the US’s most popular consumer brands have moved into the Chinese market. But now, that strategy looks like it may not pay off as much as originally thought.
Names like Nike (down 1.05% today), Starbucks (down 2.08%), and Apple (down just 0.19%), are particularly vulnerable to the trade war worsening, especially since they already face cutthroat competition from domestic Chinese brands, according to the Wall Street Journal.
Today, Bloomberg reported that the Chinese government told airlines to stop taking further deliveries of Boeing aircraft, sending the stock dropping 2.36%.
Another loser is Dow, which fell 4.10% after Bank of America analysts downgraded the chemical company, noting that it is caught in a “perfect storm” that includes a slowing economy and tariffs.
However, there are some names that have gotten a boost from the trade war. Rare-earth minerals miner MP Materials soared over 20% yesterday on reports that President Trump plans to stockpile critical materials to offset Chinese trade war retaliation.
And some analysts see gains ahead for diversified energy companies, even as they cut their price targets for oil. UBS, for example, pointed to Exxon Mobil and Conoco Phillips as their trade war era picks.
It’s not just publicly traded companies that are being divided by international trade spats. Seasonal fireworks sellers are suffering as business slows down, while an Amish fire-pit maker is poised to topple industry leader Solo Stove thanks to its domestic manufacturing.
But the biggest loser of all? Us, given we run the daily risk of having to rewrite our entire newsletter based on one stray Truth Social post.—LB
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