Low-Cost Retail Investors Could Be Waking Up To Trump's Protectionism

Shares of Wal-Mart Stores Inc WMT, Dollar General Corp. DG and Dollar Tree, Inc. DLTR plummeted as much as 2 percent Friday morning, and traders attributed the activity to continued concern on proposed border taxes.

President Donald Trump’s emphasis on domestic job growth and proposal of a 20-percent tariff on Mexican goods could shake retailers reliant on low-cost imports.

Investors, it seems, are growing increasingly aware of how changes to the U.S.-Mexico relationship would impact their portfolios.

Throughout the last month, the blue-chip Wal-Mart stock sunk 8 percent as traders considered the policy implications. They plunged Friday on high volume in a matter of seconds.

So did the values of multiple other companies in the retail sector.

Target Corporation TGT and Costco Wholesale Corporation COST fell in amounts equivalent to their peers, while Sears Holding Corp SHLD plunged a full 8.2 percent.

SPDR S&P Retail (ETF) XRT last traded at $42.69.