Why PepsiCo Stock Withered on Wednesday

Core Viewpoint - The ongoing trade dispute between the U.S. and key trading partners is disproportionately affecting certain companies, particularly those facing tariffs, such as PepsiCo [1]. Group 1: Company Impact - PepsiCo has been negatively impacted by the current tariffs, resulting in a nearly 3% decline in its share price on a day when the S&P 500 index gained 0.5% [2]. - A group of major American food and drink manufacturers, including PepsiCo, has formally requested exemptions from tariffs on certain ingredients not available from U.S. sources, such as cocoa and fruit [3][4]. - Jefferies has downgraded PepsiCo's rating from buy to hold, citing general weakness and market share losses as reasons for the delayed turnaround [5]. Group 2: Industry Response - The letter from food and drink manufacturers to President Trump emphasizes the need for a targeted removal of tariffs on specific inputs to protect domestic manufacturers and mitigate consumer inflation [4]. - The potential fallout from the trade dispute raises concerns about the overall health of the food and beverage industry, suggesting that PepsiCo may be a stock to avoid for the time being [6].