The prospect of a trade war between the U.S. and key trade partners put the outlook of a slew of companies in doubt, according to JPMorgan. President Donald Trump over the weekend issued a 25% tariff on Canadian and Mexican imports, along with a 10% levy on goods from China. The duties on Canada and Mexico were then halted for 30 days on Monday, while China retaliated with tariffs of up to 15% on select U.S. products. The back and forth on the trade front has sparked concern over how certain industries could suffer, sparking volatility in equity markets around the world. In an effort to navigate ongoing “trade turbulence,” JPMorgan strategist Dubravko Lakos-Bujas listed several U.S. companies that the firm thinks will likely be sensitive to escalating tariffs from the U.S. against imported goods coming from several regions — including China, Mexico, Canada and Europe. “Most market participants have been preparing for such tariff headlines since the U.S. election and intuitively understand that Tariffs 2.0 will be used by the Trump Administration for policies beyond just trade (e.g., immigration, national security, foreign policies),” Lakos-Bujas said in a note to clients. “As such, we expect sudden bouts of volatility followed by recovery … with high stock dispersion to be an ongoing feature for markets in 2025.” The stocks were derived from dozens of JPMorgan analysts covering roughly 1,000 companies with high geographic revenue exposure to the affected areas. Here are the companies they found to be under the most threat from tariffs: Automakers and auto suppliers have been hit hard due to concerns tied to new tariffs, particularly as many electric and autonomous vehicle companies do business in China and rely on imports from foreign countries to meet domestic consumer demand. JPMorgan listed EV maker Tesla , auto parts supplier Aptiv and commercial truck and auto retailer Penske Automotive as names in the industry that could languish in this environment. Tesla and Aptiv are primarily exposed to China, while Penske’s top line is closely tied on Europe. Tesla has lost more than 5% this week, while Aptiv has shed more than 1%. Penske dipped 1% on Monday but has since recovered and is now up more than 3% for the week. Other so-called Magnificent Seven stocks are also at risk from tariffs, including Apple and Amazon, according to JPMorgan. Apple has been considered potentially the most vulnerable of the megacap tech basket given that the iPhone maker assembles the majority of its products in China . Amazon’s advertising business benefits from China-based sellers and many of its third-party sellers are in China. Several consumer giants and retailers, including toothpaste maker Colgate-Palmolive, Ebay and Estee Lauder are also at risk.
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