What Happened?

A number of stocks fell in the afternoon session after the U.S. threatened to impose "massive increases" to tariffs on China in response to new export controls from Beijing. The potential countermeasures follow China's decision to place new restrictions on the export of strategic minerals and related products, including rare earths, which are critical for the defense, semiconductor, and manufacturing industries. This escalation in the economic competition between the two largest global economies is fueling investor anxiety. The new tariff threats raise concerns about disruptions to global supply chains, increased material costs for manufacturers, and a potential drag on an already sluggish economy. Industrial companies are particularly sensitive to these developments as they are often cyclical and heavily reliant on international trade.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Ground Transportation company Knight-Swift Transportation (NYSE: KNX) fell 5.5%. Is now the time to buy Knight-Swift Transportation? Access our full analysis report here, it’s free for active Edge members.
• Ground Transportation company Universal Logistics (NASDAQ: ULH) fell 7.4%. Is now the time to buy Universal Logistics? Access our full analysis report here, it’s free for active Edge members.
• Marine Transportation company Genco (NYSE: GNK) fell 3.7%. Is now the time to buy Genco? Access our full analysis report here, it’s free for active Edge members.
• Custom Parts Manufacturing company Stratasys (NASDAQ: SSYS) fell 4.7%. Is now the time to buy Stratasys? Access our full analysis report here, it’s free for active Edge members.
• Ground Transportation company Werner (NASDAQ: WERN) fell 5.3%. Is now the time to buy Werner? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Universal Logistics (ULH)

Universal Logistics’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 5.1% on the news that the Trump administration announced a new 25% tariff on imported trucks. 

President Trump announced via his Truth Social platform that a 25% tariff will be levied on all medium and heavy-duty trucks imported into the United States, effective November 1st, 2025. This move is poised to have a significant impact on truck manufacturers, particularly those based in neighboring countries that export to the U.S. The new tariff could increase costs for foreign manufacturers, potentially altering the competitive landscape within the heavy-vehicle industry. Investors are now watching to see how this will affect supply chains, pricing, and the stock performance of both domestic and international truck makers.

Universal Logistics is down 55.8% since the beginning of the year, and at $19.32 per share, it is trading 63% below its 52-week high of $52.28 from November 2024. Investors who bought $1,000 worth of Universal Logistics’s shares 5 years ago would now be looking at an investment worth $835.64.

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