Who Profits from Mexico Trade Tarrifs?

This is a flash update. More to come…

President Trump yesterday announced a 5% tariff on all goods coming from Mexico starting on June 10th. This will increase to 10% on July 1st and then an additional 5% on the first of each month thereafter until a maximum of 25%. Can any US companies benefit from this?

Let’s dig in a bit further. Top US imports from Mexico include:

Avocados
Beer
Sugar
Tomatoes

Investors in our Main Trading Lounge which can be found here, scoured US companies to see who may benefit. So far, 3 possible investments have been found:

LMNR, CZZ, and TAP

LMNR is a microcap US pure play on Avocados, Lemons, and Oranges with just 17.77M shares outstanding
CZZ sells sugar from Argentina which could take some market share from Mexico [with a great technical setup to boot]
TAP is a US and Canada beer company which could benefit with no Mexico exposure which could see increased sales.

As of the time of publishing this post, LMNR is up 1%, CZZ is up 0.4%, and TAP is down 1.3%. These 3 stocks so far are far out-performing their peers today. More to come as our group researches the opportunity further.

 

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