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

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  • President Donald Trump's proposed tariffs on goods imported from Mexico pose a risk to a basket of Russell 1000 stocks that are highly exposed to the country, Goldman Sachs says.
  • The automobile and electrical-equipment industries dominate the list of companies in the index that report a meaningful percentage of their assets in Mexico.
  • Since Trump's surprise announcement last week, experts have warned the proposed tariffs could have a significant negative impact on the US stock market.
  • Visit Markets Insider's homepage for more stories.

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:
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Skyworks Solutions

Skyworks Solutions

Ticker: SWKS

Sub-industry: Semiconductors

Percentage of assets in Mexico: 39%

Market cap: $12 billion

Source: Goldman Sachs

Kansas City Southern

Kansas City Southern

Ticker: KSU

Sub-industry: Railroads

Percentage of assets in Mexico: 38%

Market cap: $12 billion

Source: Goldman Sachs

Sensata Technologies

Sensata Technologies

Ticker: ST

Sub-industry: Electrical components and equipment

Percentage of assets in Mexico: 26%

Market cap: $7 billion

Source: Goldman Sachs

Lear Corporation

Lear Corporation

Ticker: LEA

Sub-industry: Auto parts and equipment

Percentage of assets in Mexico: 24%

Market cap: $8 billion

Source: Goldman Sachs

Regal Beloit

Regal Beloit

Ticker: RBC

Sub-industry: Electrical components and equipment

Percentage of assets in Mexico: 23%

Market cap: $3 billion

Source: Goldman Sachs

Lennox International

Lennox International

Ticker: LII

Sub-industry: Building products

Percentage of assets in Mexico: 21%

Market cap: $11 billion

Source: Goldman Sachs

Pilgrim's Pride

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

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

Crown Holdings

Ticker: CCK

Sub-industry: Metal and glass containers

Percentage of assets in Mexico: 12%

Market cap: $8 billion

Source: Goldman Sachs

Adient

Adient

Ticker: ADNT

Sub-industry: Auto parts and equipment

Percentage of assets in Mexico: 10%

Market cap: $2 billion

Source: Goldman Sachs

Johnson Controls International

Johnson Controls International

Ticker: JCI

Sub-industry: Building products

Percentage of assets in Mexico: 9%

Market cap: $35 billion

Source: Goldman Sachs

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