President Donald Trump is shaking up the business world with new tariffs. He levied a 10% charge on all goods imported from China, and plans to levy a 25% charge on imports from Mexico and Canada. Over the next few weeks, his administration also plans to announce “reciprocal” tariffs on countries that tax U.S. exports. Tariffs on aluminum, steel, and now autos, pharmaceutical products, and semiconductor imports are creating uncertainty for companies across industries.
As a result, investors are seeking out stocks that will get by unscathed. They want companies that will keep paying out dividends no matter what happens with trade policy. This is because for every 5% increase in U.S. trade taxes, S&P 500 Index ($SPX) constituents will make 1%-2% less per share.
