Pro Analysis

Here are the potential winners and losers from GOP's border tax, UBS says

US-Mexican border
Justin Sullivan | Getty Images
US-Mexican border

The border tax provision that may end up being a part of the bigger tax reform plan from President Donald Trump and the Republican-led Congress could disrupt global trade and hurt shares of many retailers, according to UBS.

It will leave some winners in its wake as well, the firm said.

"The pricing impact is complicated by the ability of companies to absorb or pass on the tax reform pricing impacts to customers as well as by the potential foreign exchange reaction. Both factors can mitigate or amplify the valuation impacts of the reform," analyst Geoff Robinson wrote in a research note on Tuesday.

Robinson says the proposed border tax adjustment, which aims to curtail imports and promote exports of U.S.-made goods, will impact semiconductor makers and auto and apparel manufacturers, among others that rely on foreign labor and products.