Why UPS, Forward Air, and FedEx Stocks All Tumbled Today

After months of threatening to levy tariffs on imports from countries he blames for facilitating the flood of fentanyl into the U.S., on Saturday, President Donald Trump did just that. He announced the imposition of new 25% tariffs on imports to the U.S. from its top two trading partners, Mexico and Canada. The country's third biggest trading partner, China, got hit with a 10% increase in its tariffs as well. U.S. stock markets are reacting as you might expect they would, with the Dow Jones Industrial Average down more than 600 points (1.4%) as of 10:20 a.m. ET, and the broader S&P 500 off 1.9%. Transportation stocks in particular were taking it on the chin this morning: United Parcel Service (NYSE: UPS) stock is down 3.5% as I write this, Forward Air Corporation (NASDAQ: FWRD) is off 6.3%, and FedEx shares (NYSE: FDX) are doing worst of all -- down 6.6%. Trump later put a hold on the Mexico tariffs.The new tariffs are expected to go into immediate and full effect just after midnight tonight, although energy imports from Canada will get a slight reprieve, being taxed at only 10%. CNBC notes that combined, U.S. trade with the three countries named is worth $1.6 trillion annually, so you might think this means, the tariffs would generate about $400 billion in additional annual revenue for the U.S.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool