By Emily Dattilo

Airline stocks were trading lower on Tuesday, one of many sectors getting punched after President Donald Trump's tariffs on Mexico, Canada, and China took effect.

United Airlines dropped 7.5%, Southwest Airlines lost 3.7%, American Airlines slid 5.7%, Delta Air Lines was down 7.4%, JetBlue Airways was off 8.7%, and Frontier Group plunged 7%.

The U.S. Global Jets exchange-traded fund is down 4.5%, on track for its largest daily percentage decrease since August, according to Dow Jones Market Data.

The declines shouldn't be surprising, considering tariffs are mentioned as a risk in the latest 10-K from United. "Any deterioration in global trade relations, such as increased tariffs or other trade barriers, could result in a decrease in the demand for international air travel," the filing reads.

Deutsche Bank analysts led by Michael Linenberg highlighted a different concern in a research report Monday, cutting their ratings on Jet Blue and Frontier to Hold from Buy.

"We entered 2025 with high hopes that the supply/demand backdrop would drive solid profit growth, building on 2024's results which were strong for the industry's profit leaders," they wrote. "And while we continue to remain constructive on the supply backdrop -- which we still believe is favorable -- our attention has shifted to what appears to be an emerging economic 'soft patch.' "

Write to Emily Dattilo at emily.dattilo@dowjones.com

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March 04, 2025 12:00 ET (17:00 GMT)

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