4 Popular Brand Stocks Expected To Plummet in Value in 2025

The 2025 stock market is shaping up to be a battlefield for companies reliant on global supply chains. With President Trump's aggressive trade policies now in full force—including 145% tariffs on Chinese imports and retaliatory duties from allies—the consumer goods and retail sectors are facing a perfect storm. Tariffs are no longer abstract policy debates; they are concrete cost drivers eroding margins and reshaping corporate strategies. For investors, now is the critical moment to reassess exposure to brands that lack the pricing power or supply chain agility to weather this new reality.

The Tariff Tsunami: Why Consumer Goods and Retail Are Vulnerable

The U.S. trade war has created a ripple effect across industries. Apparel, medical devices, automotive parts, and retail are particularly exposed because their operations depend on low-cost manufacturing hubs in China, Vietnam, and Mexico. The Yale Budget Lab estimates that the average household will lose $3,800 in purchasing power annually due to tariffs, while companies face margin compression from inflated import costs. Apparel and footwear prices are already rising by 10–20%, and retailers like Walmart and Target are scrambling to diversify supply chains. But not all companies can adapt quickly.

1. VF Corporation (VFC): The Apparel Sector's Poster Child for Tariff Pain

VF Corporation, owner of The North Face, Timberland, and Vans, has seen its stock plummet 30% in 2025. This is no accident: 70% of its supply chain is tied to China and Vietnam, both now under Trump's tariff microscope. A 34% duty on Chinese goods and even higher rates on Vietnamese imports have forced VF to absorb costs or raise prices—neither of which is ideal for a brand competing in a price-sensitive market.

Analysts project VF's earnings to contract by 12–15% in 2025, with gross margins shrinking by 200 basis points. The company's recent pivot to Vietnam was supposed to hedge against China risks, but Vietnam's 36% tariff on U.S. imports has backfired. Investors should watch for further margin warnings and potential divestitures in its slower-growing segments.

2. GE Healthcare (GEHC): Medical Tech's Tariff Quagmire

GE Healthcare, a leader in imaging and diagnostics, has seen its stock drop 19% amid supply chain disruptions. The company relies on imported components from China and India, both now subject to Trump-era tariffs. Its revised 2025 earnings guidance—from $4.61 to $4.75 per share to $3.90 to $4.10—reflects a $500 million revenue hit from tariffs, with 75% of that coming from U.S.-China bilateral duties.

The company's mitigation efforts, including USMCA compliance and logistics route optimization, will only offset half the damage. Worse, the full impact is skewed toward the second half of 2025, meaning investors should brace for further downgrades. For a sector that prides itself on precision, GEHC's current chaos underscores the fragility of globalized medical tech supply chains.

3. Polaris (PWR): Automotive's Forgotten Casualty

Polaris, a manufacturer of ATVs, snowmobiles, and side-by-sides, has lost 18% of its market value in 2025. Its largest factory in Monterrey, Mexico, was once a cost-efficient hub under NAFTA, but new tariffs have erased those advantages. The company now faces 25% duties on parts imported from Mexico and Canada, with retaliatory tariffs from those countries adding insult to injury.

Polaris's 2025 earnings are expected to decline by 8–10% as it struggles to shift production to U.S. or Southeast Asian plants. Unlike Tesla or Rivian, Polaris lacks the scale to absorb these costs. With consumer demand for discretionary vehicles softening, the company's margin compression could trigger a vicious cycle of lower sales and deeper price cuts.

4. Best Buy (BBY): Retail's Tariff-Driven Margin Meltdown

Best Buy's 17% stock drop in 2025 highlights the retail sector's vulnerability. While the company only directly imports 2–3% of its inventory, its complex supply chain is intertwined with vendors in China and Southeast Asia. Tariffs have pushed up the cost of components like semiconductors and batteries, squeezing gross margins by 110 basis points.

The company's attempts to pass costs to consumers—via modest price hikes—have been met with resistance in a recessionary environment. Best Buy's 2025 earnings are now projected to fall 5–7% short of initial forecasts. For a retailer already battling Amazon, this margin pressure could force painful concessions, including store closures or inventory markdowns.

The Bigger Picture: Why These Stocks Are a Warning Bell

The struggles of VF, GEHC, Polaris, and Best Buy are not isolated. They reflect a broader trend: companies with rigid, globalized supply chains are now at the mercy of political whims. The “Magnificent Seven” tech giants, insulated by their pricing power and domestic-centric operations, continue to outperform. Meanwhile, the S&P 500's 493 other companies are grappling with a 3–4% earnings slowdown, with tariffs accounting for a significant chunk of that drag.

Investment Advice: Reassess Exposure Now

For investors, the lesson is clear: avoid brands that cannot adapt their supply chains or pricing strategies to a protectionist world. The four stocks above are red flags for 2025. Instead, consider companies with:
1. Diversified supply chains (e.g., those shifting production to Mexico or Vietnam before tariffs spiked).
2. Strong pricing power (e.g., premium brands like Apple or Nike, which can offset cost increases).
3. AI-driven logistics tools (e.g., Walmart's use of Suplari's Tariff Insights to optimize sourcing).

The market's reaction to tariffs is far from over. As Trump's policies escalate and allies retaliate, 2025 could see more margin carnage. For now, cutting exposure to vulnerable brands is the most prudent move.

The time to act is now. The next tariff shock could be just a trade negotiation away.