US Railroad Operator Stocks Pare Losses After Trump Halts Mexico Tariffs: Retail’s Still Concerned

Union Pacific, Norfolk Southern, and CSX Corp pared their morning losses but traded nearly 1% lower on Monday afternoon.

Shares of U.S. railroad operators pared Monday morning losses after U.S. President Donald Trump announced a pause on the 25% import tariffs on Mexico. The decision followed President Claudia Sheinbaum’s agreement to deploy 10,000 troops to the U.S.-Mexico border.

Union Pacific, Norfolk Southern, and CSX Corp rebounded slightly on Monday afternoon but traded lower by nearly 1%,

Brokerage Loop Capital downgraded many railroad stocks due to concerns over tariffs, according to TheFly.

The firm said that even if tariffs work, the benefits are all back-end loaded, while the pain is upfront and immediate.

The report added that the resulting inflation reduces sales and transportation demand. It noted that the transportation sector has already been in a "freight recession" for the last two years, and the tariff policy will extend it.

Retail sentiment on Stocktwits on United Pacific moved to ‘bearish’ (40/100) territory from ‘bullish’(64/100) a day ago, while retail chatter remained ‘low.’ 

One user said the decline of Union Pacific was an overreaction. 
https://stocktwits.com/taurus_bullish/message/602609279

In 2023, the U.S. shipped $28.3 billion of agricultural products to Canada, making it the third-largest destination for U.S. exports behind China and Mexico.

Over the past year, United Pacific stock has fallen about 1% and CSX has fallen about 10% while Norfolk Southern has gained marginally.

Union Pacific and Norfolk Southern had topped profit estimates in January while CSX posted earnings in line with Wall Street's projections.

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