10 Companies That Should Fear Donald Trump’s “America First” Plans
Slide Show

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans

iStockphoto

Advertisement

Right or wrong, there’s no denying President-elect Donald Trump’s “America First” policies are making an impact on U.S. companies’ plans to move jobs from U.S. soil to foreign lands.

In mid-November, Ford Motor Company (F) announced it had changed its mind and wouldn’t be moving production of the Lincoln MKC from Louisville, Kentucky. That line was otherwise headed to Mexico until, arguably, Trump was clearly going to shame the company into submission. In early December — under pressure from Donald Trump — Indiana-based HVAC equipment maker Carrier opted to keep a few hundred jobs at home rather than move those positions to Mexico.

Advertisement
Advertisement

Point being, the “America First” mantra wasn’t just a campaign slogan. Donald Trump clearly has every intention of creating or preserving as many American jobs as he can, no matter how it gets done.

This mindset and mission poses potential problems for some companies that rely heavily on overseas manufacturing. These 10 major corporations are particularly vulnerable.

Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 2 of 11

Ford

iStockphoto

Advertisement

While Trump’s “victory” over Ford’s plans in mid-November was a little anemic (the word is that no jobs were going to be lost even if the Lincoln MKC’s production was moved south of the border), it’s tough to deny Ford hasn’t taken notice of, and responded to, Trump’s rhetoric.

Just last week, the carmaker canceled plans to build a new $1.6 billion plant in Mexico. Ford CEO Mark Fields made a point of saying the decision had nothing to do with Trump’s policies, but rather were driven by market conditions. The timing of the decision is uncannily coincidental, though.

And yet, as compelling as the last few weeks of headlines have been, the reality is that Ford along with its peers would still love to transplant more production of its vehicles to locales outside of the United States … where costs are considerably lower.

SEE ALSO FROM KIPLINGER: 5 Sin Stocks for Dividend Investors

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 3 of 11

General Motors

Courtesy GM

Advertisement

Whereas Ford was at least willing to extend an olive branch to Donald Trump by throwing him a couple of bones, General Motors Company (GM) has been publicly more resistant to the President-elect’s America First initiatives.

Granted, Trump’s tweet that criticized GM for making the hatchback version of the Cruze was a bit misleading — most of those Mexican-made Cruze’s aren’t sold to U.S. consumers.

But, with General Motors planning more than a thousand layoffs at a Lordstown, Ohio, plant in the shadow of record-breaking auto sales in the United States, it makes GM an easy target for criticism.

SEE ALSO FROM INVESTORPLACE: 7 Cheap Stocks to Buy That Could Double in 2017

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 4 of 11

Mondelez

Mike Mozart via Flickr (Modified)

Advertisement

Snack food company Mondelez International Inc. (MDLZ) — the maker of Oreos, Tang and Trident gum, just to name a few — was called out by Donald Trump during his campaigning after the company moved a few hundred jobs from Chicago to Mexico.

Mondelez has managed to remain out of the spotlight since then, but clearly it’s one of the companies that’s on his radar.

SEE ALSO FROM KIPLINGER: The Best Dividend Stocks in the Dow Averages

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 5 of 11

Cognizant Technology

Cognizant Technology Solutions via Flickr (Modified)

Advertisement

It has been one of the less-discussed nuances of Trump’s “America First” push, but his policies would effectively cut back on immigration, curtailing the inflow of qualified IT workers, and limiting some U.S. technology companies’ ability to grow.

Cognizant Technology Solutions Corp. (CTSH) could feel that pain more than any other tech outfit, in that it’s the biggest employer of foreign workers within the technology sector.

Last year, it employed 15,680 H-1B (a U.S. work authorization) individuals.

SEE ALSO FROM INVESTORPLACE: 7 Cheap Stocks to Buy That Could Double in 2017

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 6 of 11

Accenture

Courtesy Accenture

Advertisement

Along those same lines, Accenture Plc. (ACN) could find relatively the same amount of trouble hiring qualified workers as Cognizant does.

Accenture employed 5,793 H-1B workers last year. If immigration and work-authorization rules tighten, Accenture’s business could be crimped.

SEE ALSO FROM KIPLINGER: Great Dividend Stocks in the Russell 2000 Index

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 7 of 11

Amazon

Courtesy Amazon

Advertisement

Amazon.com, Inc. (AMZN) was another U.S. company Trump criticized during his campaigning. Although his criticism was aimed more at Amazon CEO Jeff Bezos’ ownership of The Washington Post, the President-elect has cited antitrust concerns about Amazon.

While the e-commerce giant doesn’t have any sort of actual monopoly on the market, there’s no way of denying its business has been largely built on the sale of goods mostly made outside of the United States.

Trump’s proposed import tariffs could make life very difficult for Amazon.

SEE ALSO FROM INVESTORPLACE: 7 Cheap Stocks to Buy That Could Double in 2017

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 8 of 11

Qualcomm

Kārlis Dambrāns via Flickr

Advertisement

Should Trump’s proposed import tariffs start a much-feared trade war with China, chipmaker Qualcomm, Inc. (QCOM) could be among the hardest hit.

More than half of its revenue comes from China alone, and retaliatory tariffs could put the kibosh in that business in a hurry.

SEE ALSO FROM KIPLINGER: 10 Great All-Weather Stocks

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 9 of 11

Kansas City Southern

Justin Smith via Wikipedia

Advertisement

Even within the railroad industry’s social circle, Kansas City Southern (KSU) isn’t exactly a name that turns heads. So why is the company finding itself in the spotlight now?

It’s the one railroad with the most to lose as Donald Trump turns his “America First” philosophy into policy.

If trade between Mexico and the United States is stymied, demand for the usage of a key piece of its rail lines will be hurt. Nearly half of the company’s revenue comes from deliveries to or from Mexico.

SEE ALSO FROM INVESTORPLACE: 7 Cheap Stocks to Buy That Could Double in 2017

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 10 of 11

General Electric

Courtesy General Electric

Advertisement

Giving credit where it’s due, it was Jim Cramer who first floated the idea back in March 2016, well before Donald Trump was elected.

The impact of an “America First” mindset may not just be an trade policy, but a political one. Those countries adversely impacted may choose to retaliate against U.S. companies by refusing to buy our goods.

That puts a whole slew of corporations at risk like the aforementioned Qualcomm, but perhaps none as much as General Electric Company (GE). Not only are 70% of its orders from foreign customers, GE purchases a lot of foreign-made supplies that could soon become much more expensive.

SEE ALSO FROM KIPLINGER: 27 Best Stocks for 2017

Advertisement
Advertisement
Advertisement
Advertisement

Practical Advice from

10 Companies That Should Fear Donald Trump’s “America First” Plans | Slide 11 of 11

Walmart

Courtesy Walmart

Advertisement

Finally, while most U.S. companies only have to worry about the “America First” initiative from Donald Trump for one reason or another, retailer Wal-Mart Stores, Inc. (WMT) may find itself fending off the impact on several fronts.

First, if Trump successfully spurs new American jobs, that could force Walmart to pay higher wages to its workers.

Second, as was the case with Amazon, tariffs on foreign-made goods will increase the company’s inventory costs.

And third, as was potentially the case with General Electric and others, a political backlash could make business very difficult to conduct outside of the United States. Roughly one-fourth of Walmart’s revenue is generated outside of the U.S.

This article is from James Brumley of InvestorPlace. As of this writing, he held none of the aforementioned stocks.

Advertisement
Advertisement

More From InvestorPlace

Advertisement
Advertisement