Trump plans to raise tariffs to 15%, trade-sensitive stocks plummet collectively, with retail and industrial sectors leading the decline

U.S. retail and industrial stocks declined on Monday, after President Trump announced plans to raise the U.S. global tariff rate to 15%.

Media reports indicated that a basket of stocks with high exposure to global trade, compiled by UBS, fell as much as 4.1%, marking the largest intraday decline since November 6. Leading the declines were Gap, which dropped 9.1%, American Eagle down 8.7%, and Wayfair down 9.2%.

Last Friday, after the U.S. Supreme Court rejected Trump’s broad global tariff policy, the stock basket rose 1.3%. Just hours after the ruling, Trump initially imposed a 10% global tariff on foreign goods, attempting to maintain tariffs he believes are crucial to the economy and national security.

On Monday, the S&P 500 index fell 1.16%, and the Nasdaq 100 index declined 1.32%. In the apparel and athletic wear sector, Nike dropped 4.9%, Victoria’s Secret fell 8.6%, Abercrombie declined 6.8%, Lululemon decreased 4.9%, and Under Armour dropped 6.9%.

In home decor, flooring, and furniture retailers, excluding Wayfair, RH declined 7.2%, and Floor & Decor Holdings fell 4.3%.

Among industrial and automotive companies affected by tariffs, Stanley Black & Decker dropped 4.9%, and CNH Industrial declined 2.5%.

Although Trump is applying tariffs based on another law not currently under Supreme Court review, and the new round of tariffs has not directly impacted the auto industry yet, related rulings and new tariff measures could trigger a chain reaction among auto parts suppliers.

On Monday, automakers saw declines: General Motors fell 3.6%, Ford dropped 3%, and Stellantis declined nearly 2%. Auto parts companies also declined: Sonic Automotive down 6.8%, Aptiv down 3.9%, Group 1 Automotive down 3.6%, and Asbury Automotive down 3.6%.

In the precious metals sector, concerns over U.S. trade policy uncertainty and a weakening dollar pushed gold and silver prices higher. COMEX gold futures rose 3%, with intraday gains of 3.0% in New York, closing at $5,233.9 per ounce.

Related stocks included Silvercorp Metals, which rose 6.3%, Equinox Gold up 4.9%, Agnico Eagle Mines up 4.6%, Barrick up 4.2%, and Kinross up 4%.

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