Trump says 'not ready' to making a trade deal with China; threatens tariffs on Mexico

Catch up on the top industries and stocks that were impacted, or were predicted to be impacted, by the comments, actions and policies of President Donald Trump and his administration with this weekly recap compiled by The Fly:

1. MEXICO THREAT: On Thursday night, President Trump announced that starting on June 10, the U.S. will impose a 5% tariff on all goods imported from Mexico, which will be raised to 10% on July 1 if Mexico has not taken action to "dramatically reduce or eliminate the number of illegal aliens" crossing into the United States. Tariffs will be increased steadily to 25% by October, Trump has threatened. U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steve Mnuchin are opposed to President Trump's Mexico tariffs plans, according to CNBC's Kayla Tausche, citing a source close to the White House. Following the news, many of the worst performers in the S&P 500 on Friday were companies and sectors with outsized exposure to Mexico, including Kansas City Southern (KSU), Constellation Brands (STZ-B) and a number of automakers and auto parts suppliers like General Motors (GM) and Delphi Technologies (DLPH).

2. U.S.-CHINA TRADE TALKS: At a press conference in Tokyo on Tuesday, President Trump said that he's "not ready" to make a trade deal with China. He added that tariffs could "go up substantially." Later in the week, the President noted that tariffs are having a "devastating effect" on China and that the country "would love to make" a trade deal with the U.S. During the Bernstein Strategic Decisions Conference, General Electric's (GE) CEO Larry Culp said he was "hopeful" that a U.S.-China trade resolution will come soon, while noting that some concerns around access in trade are real. The executive also added that he hasn't really seen negative impact on businesses from the trade war beyond some pressure from tariffs.

3. RARE EARTH METALS SALES TO U.S.: A China state planner commented that the Chinese people "would be unhappy" if anyone were to use products made with rare earth metals that the country exports to "curb the development of China," potentially a threat by Beijing to withhold sales of such materials to gain leverage in trade talks with the U.S., CNBC's Eunice Yoon reported on Wednesday. Analysts told Yoon that China could restrict sales of such rare earth metals to the U.S. in the name of "national security."

4. AUTO TARIFFS: The U.S. will find it "very difficult" to defend President's Trump's proposed car tariff against any challenge at the World Trade Organization, Reuters' Tom Miles reported earlier this week, citing a veteran trade adjudicator who has ruled on a related case. The car tariff of up to 25%, applying to vehicles and components from everywhere else in the world, would be automatically illegal were it not for a WTO exception granted in cases of national security, the report notes. Publicly traded companies in the space include Daimler AG (DDAIF), Fiat Chrysler (FCAU), Ford (F), General Motors, Honda (HMC), Nissan (NSANY), Toyota (TM) and Volkswagen (VWAGY).