Goldman Sachs: Autos to hurt the most if Trump pulls out of NAFTA

An employee works on a Ford Expedition sports utility vehicle on the assembly line at the Ford Kentucky Truck Plant in Louisville, Kentucky.
Luke Sharrett | Bloomberg | Getty Images

Goldman Sachs warned investors that holding stocks with Mexico exposure could backfire if President Donald Trump decides to pull the U.S. out of NAFTA.

"Stocks with high Mexico exposure have lagged the S&P 500 by 500 basis points since November alongside rising trade uncertainty," David Kostin, Goldman Sachs chief U.S. equity strategist, wrote Friday. "Among industries, autos appear to face the largest risk from NAFTA withdrawal. Autos make up the largest portion of trade with Mexico by a wide margin and face high tariffs outside of trade agreements."

While automobiles may be uniquely vulnerable to a departure from the North American Free Trade Agreement, Kostin listed other major industries that could fall victim to such a withdrawal.