Hey Snackers,
As traders scramble to figure out which stocks might be immune to tariff exposure, there’s one surprising company that looks like it won’t roll over: Chewy. The reason? While people are willing to buy cheap stuff for themselves, when it comes to their beloved pets, quality and safety standards go way up. (Check out our Markets Editor’s dog reviewing a fishy product.)
Stocks rebounded yesterday as many areas of the market most bedeviled by the imposition of tariffs on Mexico and Canada saw large relief rallies after the White House issued a one-month exemption for auto imports. We’ll dig more into that below.Â
The S&P 500 rose 1.1%, the Nasdaq 100 gained 1.4%, and the Russell 2000 was up 1%. Every S&P 500 sector ETF finished higher besides energy and utilities. Materials led the way higher, while healthcare, communication services, tech, consumer discretionary, and industrials all rose by more than 1%.
Planes, trains, ships, and especially automobiles reverse course
On Tuesday, President Trump’s tariffs hit the shares of just about every mode of transportation, sending prices spiraling down. From cruise lines to automakers to airlines, the stocks all flashed red as investors braced for a bumpy ride.Â
Auto stocks really took a beating, as much of America’s car stock is imported from other countries ($279 billion worth last year). Specific companies heavily rely on foreign production, like GM, America’s largest automaker, which made about 900,000 vehicles in Mexico last year. Consumers also didn’t like hearing the news that a new car might cost $12,200 more.
But Wednesday, those stocks made a complete U-turn after Commerce Secretary Howard Lutnick said “it could well be autos” that could soon see some tariff relief. This sent shares of GM, Stellantis, and Ford speeding up even before an official confirmation came later in the day that cars compliant with USMCA regulations would receive a one-month exception. All ended the day more than 5% up, with Stellantis notching a hefty 9% bump.Â
Lutnick also said “it could be others as well,” and it seems one of those others may be airlines, which took off on possible tariff relief. Cruise ships? Also back in the green Wednesday, as well as ship maker Huntington Ingalls, which rode the rising tide of Trump’s vow to Congress Tuesday night to “resurrect” domestic shipbuilding.
The Takeaway
Even with the reversal, most American automaker shares are still down or flat in 2025, and it’s worth repeating that this exemption buys the industry only another month before the process rinse and repeats again. Trump has said he’s planning auto-specific tariffs as early as April 2, with across-the-board reciprocal tariffs slated to be pushed through that day.Â
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Tariffs on Mexican goods are getting ready to hit you right in the avocados
Yesterday we looked at a day in the life through the lens of how Canadian tariffs would affect an average American, and today we bring you the Mexican edition.Â
Mexico is, after all, America’s largest trading partner. The US imported $506 billion worth of goods from Mexico last year, and Mexico imported $334 billion worth of American goods. So let’s see what this weekend might look like...
You worked hard and eggflation be damned, you’re treating yourself to a nice home-cooked omelette. You whip up some eggs and chop some vegetables. That’s when you realize you’re out of avocados, because their price was outrageous at the supermarket this week.Â
🥑 90% of avocados imported to the US come from Mexico. The US imported $3.4 billion worth in 2024.Â
After breakfast, you head to the marina, where you meet a friend for an outing on their boat. As you speed across the water, you think about how nice it would be to have a really nice boat of your own. But last time you looked, prices had shot up 25%, making them further out of reach.
🚤 85% of outboard motorboats, rowboats, and canoes imported to the US came from Mexico last year. The US imported $568 million of these watercraft in 2024.
While out on the boat, you open your cooler and pop open a frosty beer. But you only picked up a six-pack, as they’ve gotten so expensive recently.
🍺 83% of beer imported to the US comes from Mexico. The US imported $6.2 billion worth of beer from Mexico in 2024.Â
It’s getting late! You need to run to the grocery store to pick up some things for the barbecue dinner you’re hosting tonight.Â
THE BEST THING WE READ TODAY
US weed companies got leaner in 2024. The only thing investors care about is cannabis reform.
The question on everyone’s mind remains: will it be legalized or treated differently by the government and banks?
OFF THE CHARTS
MOVES
Abercrombie & Fitch shares took a dive after the mall retailer gave chilly expectations for the year
CrowdStrike slumped after its outlook for this year was far worse than any Wall Street analyst anticipated
Moderna rose after $6 million in insider purchases was revealed and a German court ruled that Pfizer violated Moderna’s Covid vaccine patent
What Else We're Snackin'
European defense stocks have soared this year. Today, EU leaders will discuss the $840 billion defense plan
Sweetgreen has been losing millions selling $16 salads — maybe fries will help it turn a profit?Â
More Americans are breaking into their 401(k) accounts to cover financial emergencies
Get ready to stay up late next week to catch the “Blood Moon” total lunar eclipse
Snack Fact
According to a recent national poll, almost half (48.5%) of all Americans surveyed hadn’t read a single book in over a year.
Thursday's Events
Fourth-quarter US productivityÂ
Earnings expected from Broadcom, Costco, JD.com, Kroger, Gap, Macy’s, and Hewlett-Packard Enterprise
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