The Trump administration imposed new tariffs on goods from China in February 2025 while simultaneously delaying promised tariffs on items imported from Canada and Mexico. As of February 7, 2025, the future of these latter two tariffs remains unclear. Nonetheless, the market has been jolted by the possibility of large-scale changes to the flow of trade between the United States and one or more of its major trading partners.
Naturally, investors have looked for ways to capitalize on this tariff uncertainty. At the same time, though, an unpredictable tariff landscape also poses threats to the stability of the market and investor portfolios, and more risk-averse participants are likely to opt for defensive plays that are likely to withstand any surprising shake-ups.
