By David Uberti and Owen Tucker-Smith

Shares in firms that transport and store goods across North America are falling in anticipation of President Trump's wide-ranging tariffs on America's top trading partners.

Investors on Monday sold off stocks in logistics giant FedEx, rail operator Union Pacific and warehousing firm GXO Logistics. Canadian Pacific Kansas City, which runs railways stretching from western Canada through the Midwest and into Mexico, fell by as much as 9.4% before clawing back some of those losses.

The moves are an early indication of how Wall Street is weighing the potential fallout from trade wars-and the ways new trade barriers could pressure the companies that ship both finished goods as well as commodities like lumber across the Canadian and Mexican borders.

Union Pacific in recent quarters has touted strong demand for the American-grown grain that it transports south of the border. Analysts fear retaliatory tariffs by Mexico could target such supplies, though the Mexican president and Trump agreed to put tariffs on Mexico on hold for a month, adding to the uncertainty.

Union Pacific Chief Executive Jim Vena noted on an earnings call last month that the company is planning "for the worst." "I don't think the consumers in the U.S. would love to have an increase in prices because of a dispute," Vena added.

This item is part of a Wall Street Journal live coverage event. The full stream can be found by searching P/WSJL (WSJ Live Coverage).

(END) Dow Jones Newswires

February 03, 2025 11:36 ET (16:36 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.