What are protectionist policies and how do they affect stocks?

Protectionist policies are government measures designed to shield domestic industries from foreign competition. These typically include tariffs (taxes on imported goods), quotas, and other trade barriers. For stocks, these policies can create winners and losers: companies that produce goods domestically may benefit from reduced foreign competition and higher pricing power, while companies that rely heavily on global supply chains or international sales might face increased costs and market challenges.

What is the IMF and why does their outlook matter for these stocks?

The IMF (International Monetary Fund) is a global organization that works to foster economic stability and growth. Their economic forecasts are widely respected indicators of global economic trends. When the IMF signals concerns about trade barriers slowing global growth, it suggests an environment where domestically-focused companies might outperform those with significant international exposure. These forecasts help investors understand potential shifts in economic conditions that could affect stock performance.

Why focus on steel companies in this stock group?

Steel producers feature prominently in this group because they're often among the first and most direct beneficiaries of protectionist policies. When tariffs are placed on foreign steel, domestic producers like Nucor and US Steel can charge higher prices without losing business to cheaper imports. Additionally, steel is considered strategically important for national security and infrastructure, making it a frequent target for trade protection measures.

What does "onshoring" mean in the context of these stocks?

Onshoring refers to the process of bringing manufacturing and production back to the domestic market (in this case, the United States) after previously moving operations overseas. Rising trade barriers, supply chain disruptions, and national security concerns have accelerated this trend. Companies that facilitate onshoring or have maintained strong domestic production capabilities stand to benefit as more businesses seek to reduce their dependency on international suppliers.

What is a dividend yield and why is it listed for these stocks?

Dividend yield is the annual dividend payment expressed as a percentage of the current share price. For example, if a $100 stock pays $3 in dividends per year, its dividend yield is 3%. Many companies in this group are established manufacturers that may pay regular dividends to shareholders. The dividend yield helps investors understand the income component of these stocks, which can be particularly attractive during periods of market uncertainty brought on by changing trade policies.

14 handpicked stocks

The Protectionist Pivot

A carefully selected group of US companies positioned to benefit from rising trade barriers and tariffs. These stocks represent businesses with strong domestic operations that may gain advantages as protectionist policies reshape global trade.

Han Tan | Market Analyst

Published on July 2

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Nucor Corporation

NUE

Current price

$138.71

As the largest US steel producer, Nucor is a primary beneficiary of tariffs on imported steel, which limits foreign competition and supports domestic ...

As the largest US steel producer, Nucor is a primary beneficiary of tariffs on imported steel, which limits foreign competition and supports domestic pricing.

Steel Dynamics Inc.

STLD

Current price

$144.39

This major US steel producer and metal recycler directly benefits from protectionist measures that increase the cost of foreign steel imports.

TimkenSteel Corp

MTUS

Current price

$16.92

As a US-based manufacturer of specialty alloy steel, Metallus benefits from tariffs that make imported specialty steel more expensive for competitors.

Insteel Industries Inc

IIIN

Current price

$38.22

Carpenter Technology Corp.

CRS

Current price

$246.95

Lincoln Electric Holdings Inc.

LECO

Current price

$232.40

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

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In 12 months it might be worth:

$1,000.00

+13.99%

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About This Group of Stocks

Our Expert Thinking

With the IMF forecasting global economic slowdowns due to trade tensions, we've identified US companies likely to benefit from protectionist policies. These businesses have strong domestic operations and limited international supply chain exposure, providing potential shelter from global trade disruptions.

What You Need to Know

This group includes US steel producers, domestic manufacturers, and American consumer brands. These companies may gain competitive advantages as tariffs increase costs for foreign competitors, potentially leading to greater market share and pricing power within US markets.

Why These Stocks

Each company was selected based on its domestic production capacity and limited exposure to international supply chains. This positioning helps insulate them from trade disputes while potentially allowing them to capitalize on protectionist measures that favor American-made products.

Group Performance Snapshot

14.02%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 14.02% over the next year.

9 of 14

Stocks Rated Buy by Analysts

9 of 14 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

🛡️

Tariff-Protected Advantage

These companies may gain a competitive edge as trade barriers increase costs for foreign rivals. This protection could translate to stronger pricing power and expanded market share in key segments.

🏭

The Reshoring Revolution

As global supply chains face disruption, businesses are bringing production back to America. These stocks represent companies at the forefront of this domestic manufacturing renaissance.

🔍

Hidden From Global Chaos

While international markets may face volatility from trade tensions, these domestically-focused companies operate largely shielded from cross-border disputes and supply chain uncertainties.

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