What are tariffs and how do they affect stocks?

Tariffs are taxes imposed on imported goods that make foreign products more expensive in the domestic market. When tariffs are applied to foreign products, US companies that make similar products domestically can benefit. Their foreign competitors must either raise prices (making US companies more competitive) or accept lower profits. This can lead to increased sales, higher market share, and potentially better stock performance for these US companies.

Why are steel companies featured prominently in this group?

Steel companies are heavily represented because they're among the most direct beneficiaries of tariff policies. Steel is a globally traded commodity where foreign competition can significantly impact prices. When tariffs make imported steel more expensive, domestic producers like those in this group often gain pricing power, increased market share, and improved profitability. The steel industry has historically been a specific focus of trade protection policies.

What are "de minimis exemptions" mentioned in the description?

De minimis exemptions are rules that allow small-value imported goods to enter the country duty-free (without paying tariffs). Reducing these exemptions means that even small purchases sent through international mail now face tariffs. This change extends the impact of protectionist trade policy to a wider range of products and affects more businesses, particularly those in e-commerce that ship small items directly to consumers.

What's meant by "reshoring" in this context?

Reshoring refers to the process of bringing manufacturing and production back to the United States after previously moving operations overseas. When tariffs make importing goods more expensive, companies often reconsider their global supply chains. The companies in this group are positioned to benefit from this reshoring trend as more businesses choose to manufacture in the US to avoid tariff costs. This can create new customers, partnerships, and growth opportunities for domestic manufacturers.

16 handpicked stocks

Trump's Tariff Ripple Effect

These carefully selected stocks represent US companies likely to benefit from expanded tariffs on foreign imports. Our professional analysts have identified domestic manufacturers and steel producers positioned to gain market share as their international competitors face higher costs.

Han Tan | Market Analyst

Updated 2 days ago | Published at juillet 11