Shares of Kansas City Southern (KSU) - Get Kansas City Southern Report were backsliding 4.20% to $81.29 in Tuesday afternoon trading after Ford (F) - Get Ford Motor Company Report announced that it would no longer build a $1.6 billion factory in Mexico and instead expand one of its plants in Michigan.
Ford CEO Mark Fields insisted in TV interviews that the decision to cancel the Mexico plant was not the result of a deal with President-Elect Donald Trump, who has taken an aggressive stance on trade policies with the U.S.' southern neighbor. Trump spoke of renegotiating or outright exiting the North American Free Trade Agreement (NAFTA) between the U.S., Canada and Mexico while on the campaign trail.
Kansas City Southern - which derives roughly half of its revenue from operations in Mexico - is particularly exposed to any new trade policies that Trump may elect to pursue. Its stock fell by 10.8% on the first trading day after Trump's victory.
The railroad's competitors were all feeling the pain on Tuesday, though. Norfolk Southern (NSC) - Get Norfolk Southern Corporation Report , CSX Corp. (CSX) - Get CSX Corporation Report , Union Pacific (UNP) - Get Union Pacific Corporation Report and Canadian National (CNI) - Get Canadian National Railway Company Report were all trading lower.