01:40 PM EDT, 04/04/2025 (MT Newswires) -- Consumer stocks were sharply lower Friday afternoon, with the Consumer Staples Select Sector SPDR Fund (XLP) and the Consumer Discretionary Select Sector SPDR Fund (XLY) each dropping 2.6%.

In sector news, President Donald Trump's new tariffs could negatively impact demand and result in significant margin declines for discretionary retailers, Oppenheimer said in a Friday note.

Separately, building products companies and homebuilders in the US face "significant" earnings headwinds through 2026 as Trump's new tariffs could exacerbate existing challenges for an already weak housing market, RBC Capital Markets said in a note emailed Friday.

In corporate news, Stellantis ( STLA ) offered employee-discount pricing to the public across its brands as Trump's tariffs triggered concern that car prices will increase, Bloomberg reported. Stellantis ( STLA ) shares fell more than 5%.