As tariffs roil the markets, here's why some sectors are faring worse than others

Alexandra Mae Jones · CBC News

· Posted: Apr 08, 2025 4:00 AM EDT | Last Updated: 10 minutes ago

Stock markets sank for the 3rd time Monday after U.S. President Donald Trump announced sweeping planetary tariffs past week, and nary 1 is coming retired unscathed — but immoderate sectors are seeing much volatility than others.

All 3 large U.S. indexes touched their lowest levels successful much than a twelvemonth successful aboriginal trading connected Monday, earlier rebounding somewhat, with the S&P 500 and the Dow Jones closing little and the Nasdaq gaining 0.10 per cent. 

Here's a speedy look astatine however immoderate of the market's sectors are faring. 

Tech stocks spot plummets and rises

Technology stocks person been immoderate of the hardest deed successful the marketplace sell-off.

The Magnificent Seven — a radical of 7 high-performing tech stocks including Apple, Microsoft and Nvidia — have seen $2 trillion US of their combined worth wiped retired successful the market's caller slide.

WATCH | Trump rejects thought of a tariff intermission arsenic markets proceed to slide: 

On Monday, a rebounding of tech stocks helped to rise the S&P 500. Chip shaper Nvidia recovered from a much than 7 per cent stumble successful greeting trading and was up 3.5 per cent astatine market's close.

But overall, sectors similar tech that trust connected planetary proviso chains are going to beryllium much heavy affected by tariffs, according to Sebastien Betermier, an subordinate prof of concern successful the Desautels Faculty of Management astatine McGill University. 

Apple, for instance, mislaid 3.67 per cent of its worth by market adjacent connected Monday after dropping much than 5 per cent earlier successful the day.

A batch of Apple's hardware accumulation takes spot successful China, and Betermier told CBC News that due to the fact that of each the tariff action — Trump placed a 34 per cent tariff connected China past week, connected apical of those announced earlier successful the year, and China retaliated by announcing a matching 34 per cent tariff connected U.S. goods — Apple is getting deed by "a spot of a treble whammy."

Though the institution has made efforts successful caller years to diversify its proviso concatenation beyond China, different countries that marque Apple products are besides being targeted by the U.S. tariffs, with India and Vietnam facing tariffs of 26 per cent and 46 per cent, respectively. 

And further blows to the tech manufacture fuelled by the U.S.-China feud could beryllium connected the mode as Trump threatened Monday to spot an further 50 per cent tariff connected China if Beijing does not retreat its retaliatory tariffs connected the U.S. 

Consumer staples somewhat much stable

One assemblage that's seen little terrible drops successful marketplace worth during the caller turmoil is user staples specified arsenic groceries. 

"You tin look astatine the apical performing stocks connected the Toronto speech implicit the past period oregon so," said Barry Schwartz, main concern serviceman astatine Baskin Wealth Management, pointing to grocers and utilities specified as Hydro One and Toronto Hydro. "People person to wage for those things oregon your lights spell out. You person to [buy] groceries oregon you don't eat."

He told CBC News that the necessity of user staples means that they "tend to bash good successful choppy markets."

For instance, Costco roseate into the green, then dipped again repeatedly passim Monday, earlier closing down by 0.91 per cent, a acold little aggravated driblet than immoderate of the tech stocks.  

Although it's a much "resilient" sector, Betermier noted that retail is inactive impacted by proviso concatenation disruptions. 

"A batch of what we devour yet is made abroad." 

Outlook for retail, proscription shaky

Betermier says sectors with precise thin-profit margins, similar retail, are often immoderate of the astir impacted by tariffs. 

"When you person a tariff, either you support the aforesaid prices and ultimately, due to the fact that of that other tax, the user pays more, oregon you bring down the price [and] eat into your nett borderline to effort to marque it inactive accessible to the consumers," helium explained.

"But if you don't person overmuch of a nett borderline to statesman with, you person little country to manoeuvre."

Retail is besides different assemblage wherever proviso concatenation concerns are huge. Nike, which dropped 4 per cent connected Monday successful 1 of the larger losses successful the market, makes overmuch of its shoes and apparel successful China, wherever it besides sells a batch of product. 

WATCH | How Canadian investments could beryllium impacted by this commercialized war: 

Although proscription isn't a assemblage straight impacted by tariffs, Betermier says continued hostility betwixt the U.S. and Canada means radical might cut down connected question betwixt the 2 countries, which could effect successful a downturn.

"If the tariffs bash so pb to reduced request for these sectors, similar successful transportation, good past that's going to beryllium a nonaccomplishment down the roadworthy successful presumption of aboriginal gross for those firms," helium said.

Some hose stocks person been falling for months. United Airline Holdings, for instance, is presently trading astatine about half of what it was successful January.

Larry Fink, chief enforcement of BlackRock, the world's largest plus manager, says he's already proceeding from U.S. hose executives who say they're seeing immense impacts from the diminution successful question demand. 

"Most CEOs I speech to would accidental we are astir apt successful a recession close now," Fink said in an interrogation Monday astatine the Economic Club of New York.

"We're seeing, successful precise antithetic sectors, a existent downturn."