What are tariffs and how do they affect stocks?

Tariffs are taxes imposed on imported goods, making them more expensive in the domestic market. In this case, the 50% tariff on Brazilian imports means those products cost 50% more for US buyers. This creates a competitive advantage for companies that produce similar goods in the US or import from non-tariffed countries. For investors, this can boost the profitability of these advantaged companies as they gain market share and potentially raise prices, which is why the stocks in this group were selected.

Why would a 50% tariff on Brazilian goods help US steel companies?

Brazil is one of the world's largest steel exporters, and the US is a major buyer of Brazilian steel. When a 50% tariff is applied, Brazilian steel becomes much more expensive for US customers. This gives US steel producers like Nucor and US Steel a significant pricing advantage, as their products are now relatively cheaper compared to Brazilian imports. As a result, these companies can potentially gain market share, increase production, and possibly even raise their prices while still remaining competitive.

How does this tariff situation affect coffee-related stocks?

Brazil is the world's largest coffee producer and exporter. With a 50% tariff, Brazilian coffee beans become substantially more expensive for US coffee companies. This benefits companies like Starbucks, Keurig Dr Pepper, and JM Smucker that have diverse global sourcing networks and can shift their purchasing to non-Brazilian origins. These companies can maintain more stable prices compared to competitors who heavily rely on Brazilian coffee, giving them a potential competitive advantage and protecting their profit margins.

What is "market share" and why does it matter for these stocks?

Market share refers to the portion of total sales in an industry that a company captures. When Brazilian imports become 50% more expensive due to the tariff, US buyers look for alternatives. Companies that offer similar products without the tariff penalty can "capture market share" by attracting these customers. This matters for stocks because increased market share typically leads to higher sales volume, stronger pricing power, and better economies of scale—all of which can boost profitability and, potentially, stock performance.

What does "Projected Profit" mean in the stock data?

Projected Profit refers to the estimated future earnings that analysts expect a company to generate. This forward-looking measure helps investors understand a company's potential financial performance. For the companies in this tariff-focused group, projected profits may be particularly important as they could reflect analysts' expectations of how much these businesses might benefit from the competitive advantage created by the 50% tariff on Brazilian competitors.

15 handpicked stocks

US-Brazil Tariff Tremors

This carefully selected group of stocks represents companies positioned to benefit from the new 50% tariff on Brazilian imports. Our professional analysts have identified non-Brazilian businesses across steel, agriculture, coffee, and aerospace that are ready to capture market share as competitors' goods become prohibitively expensive.

Han Tan | Market Analyst

Published on July 11

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

$139.02

As a leading US steel producer, Nucor is positioned to benefit from tariffs that make imported Brazilian steel less competitive, likely leading to inc...

As a leading US steel producer, Nucor is positioned to benefit from tariffs that make imported Brazilian steel less competitive, likely leading to increased domestic demand and pricing power.

BHP Billiton Limited

BHP

Current price

$55.50

As a primary competitor to Brazil's Vale in the iron ore market, Australia-based BHP is poised to capture market share from US buyers seeking alternat...

As a primary competitor to Brazil's Vale in the iron ore market, Australia-based BHP is poised to capture market share from US buyers seeking alternative, non-tariffed suppliers.

Bunge Limited

Current price

$83.02

Bunge is a key competitor to Brazil in agricultural commodities like soybeans and sugar; tariffs on Brazilian goods make US-sourced or other non-Brazi...

Bunge is a key competitor to Brazil in agricultural commodities like soybeans and sugar; tariffs on Brazilian goods make US-sourced or other non-Brazilian products more attractive.

Deere & Company

Current price

$463.00

Starbucks Corporation

SBUX

Current price

$86.72

Keurig Dr Pepper Inc

KDP

Current price

$25.74

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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:

≈

In 12 months it might be worth:

$1,000.00

+39.19%

≈

About This Group of Stocks

Our Expert Thinking

These companies stand to gain directly from the 50% tariff imposed on Brazilian imports to the US. As Brazilian goods become more expensive, these non-Brazilian competitors are perfectly positioned to step in and capture market share in key sectors like steel, agriculture, coffee, and aerospace.

What You Need to Know

This is a tactical, event-driven investment opportunity based on a major trade policy shift. The tariffs create immediate market disruptions, potentially boosting revenue and pricing power for these companies as they fill the gap left by more expensive Brazilian products.

Why These Stocks

Each company was selected because it directly competes with Brazilian exports in affected industries. From US steel producers and agricultural businesses to coffee suppliers and aerospace manufacturers, these firms can now offer more competitive alternatives to tariff-burdened Brazilian goods.

Group Performance Snapshot

39.19%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 39.19% over the next year.

12 of 15

Stocks Rated Buy by Analysts

12 of 15 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

🛡️

Protected by Trade Policy

These companies now have a built-in 50% price advantage over their Brazilian competitors. This tariff shield creates an immediate competitive moat that could translate into higher profits.

📈

Market Share Opportunity

As Brazilian imports become prohibitively expensive, these companies are perfectly positioned to step in and capture abandoned market share. This isn't speculative growth, it's about filling a real market gap.

🌎

Global Trade Shift Alert

Major trade policy changes like this 50% tariff don't happen often. When they do, they create winners and losers almost overnight, making this a rare chance to get ahead of a clear market trend.

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