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Stocks Affected by Trump Tariffs – and What You Can Do

President Trump’s surprise announcement of sweeping new tariffs is shaking up global markets and triggering significant moves in key US stocks. The new tariff policy introduces a minimum 10% import tax and much higher tariffs on specific trade partners.

• China: 34%

• Japan: 24%

• Vietnam: 46%

• South Korea: 25%

• European Union: 20%

These tariffs are designed to reduce America’s reliance on foreign manufacturing, but they are already disrupting global trade and impacting major companies in the S&P 500 and Nasdaq 100 indices.

Most Affected US Stocks by Trump Tariffs

Several high-profile American companies are directly exposed to these tariffs because of their dependence on manufacturing, assembly, or supply chains in China, Vietnam, Japan, and other targeted countries.

Here is a clear list of the stocks affected by Trump tariffs and their market reaction:

The broader stock market sold off immediately after the tariff announcement:

• S&P 500 futures declined nearly 4%.

• Nasdaq-100 futures fell almost 5%.

• Dow futures dropped over 2.5%.

These declines reflect investor concerns about rising production costs, shrinking profit margins, and reduced consumer demand due to higher product prices.

US Stocks That Could Benefit from Trump Tariffs

While multinational companies are facing tariff pressure, some US-focused stocks may actually benefit. Higher import taxes make foreign-made goods more expensive, potentially giving American producers and domestic retailers a competitive edge.

Here are examples of stocks that may benefit from Trump tariffs:

Possible Ways Stock Investors Can Play This

Many investors look to buy fundamentally strong stocks such as Costco (COST) during periods of market turmoil. However, it is important to avoid rushing into a position if the S&P 500 or Nasdaq is still falling.

Here is a structured approach:

1. Wait for Market Bottoming Signs

Even strong stocks can get dragged lower by overall market weakness. Watch for:

• Signs that the S&P 500 or Nasdaq is stabilizing.

• Signs that Costco is holding up better than the indices (showing relative strength).

2. Identify Divergences and Relative Strength

You can spot relative strength by:

• Comparing charts:
  Check if the index makes a new low while Costco does not.

• Using a relative strength ratio:
  Plot COST / S&P 500 or COST / Nasdaq-100.
  If the ratio is trending upward, Costco is outperforming.

Example behavior to monitor:

3. Use a Scaling-In Plan

Once Costco shows strength:

• Start with a small position.

• Add more if the market stabilizes and Costco breaks short-term resistance.

• Always set a stop-loss to control risk in case the market weakness continues.

4. Watch Volume and News

Relative strength is more reliable when:

• Costco’s green days are accompanied by higher-than-average volume.

• There is no negative company-specific news affecting Costco.

Professional traders know that the first stocks to hold steady or rally during a market pullback often become the leaders in the next market recovery. If Costco continues to show relative strength, it could be among the first to recover when market conditions improve. Follow the big news, monitor price action to see if it confirms, and be on the look out for intelligent live market news and original ideas to support your decisions at ForexLive.com (to be rebranded to investingLive.com by the end of this year… Get used to the new name).

Stocks Affected by Trump Tariffs – Wait for the Storm to Calm Down

The new tariffs are already causing significant disruptions in global trade and stock market performance.
Stocks affected by Trump tariffs include major multinationals like Apple, Nike, Tesla, Amazon, and Walmart. These companies face higher production costs and shrinking profit margins.

On the other hand, US-based manufacturers and domestic retailers such as Caterpillar, Deere, Alcoa, US Steel, Domino’s, Dollar General, Chipotle, and Costco may benefit from these tariffs.

For investors, the key is to time entries carefully.
If you are looking to buy strong stocks like Costco, wait for:

• Signs of market stabilization.

• Clear relative strength and divergence.

• Higher volume accumulation.

This approach will help you avoid unnecessary drawdowns and position yourself to capture upside when the market recovers.

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This article was written by Itai Levitan at www.forexlive.com.

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• European Commission President von der Leyen says US tariffs a major blow to world economy
• ICYMI – China will raise the retail prices of gasoline and diesel from today
• RBC says rising global trade uncertainty may push RBA to turn more dovish
• UBS warns full tariffs could push US inflation to 5%
• Trump’s 54% tariffs bring China close to ‘worst case’ scenario, PBOC easing soon
• JPM: Tariff shock weighs on markets, but China and Hong Kong equities show resilience
• Japan Trade Minister Muto has spoken with US Commerce Secretary Lutnick
• China’s Commerce Ministry says will take countermeasures on Trump’s tariffs
• China Caixin Services PMI for March 2025 is 51.9 (prior 51.4)
• US Treasury Secretary Bessent warns other countries not to retaliate to US tariffs
• PBOC sets USD/ CNY reference rate for today at 7.1889 (vs. estimate at 7.2532)
• JP Morgan say Trump tariffs the largest tax increase since 1968 , US recession risk higher
• Japan Jibun / S&P Global Services PMI for March 50.0 (prior 53.7)
• Reserve Bank of Australia – Tariffs could have a chilling effect on business investment
• Australia trade balance for February is a surplus of AUD 2.968bn (vs. 5.6bn expected)
• PBOC is expected to set the USD/CNY reference rate at 7.2532 – Reuters estimate
• EUR risen strongly in Asia morning trade after Trump tariff announcement sell off earlier
• Deutsche Bank: there will be a straight-forward FX adjustment. Watch China’s next move
• Crypto takes another bath on Trump tariff tade war
• Trade ideas thread – Thursday, 3 April, insightful charts, technical analysis, ideas
• Fitch calculates US tariff rate on all imports is now 22%, up from 2.5% in 2024
• Canada will respond to the U.S. tariffs on Thursday, says PM Carney
• Recap (so far) – Trump trade war imposes sweeping new tariffs, 54% on China now
• US stock market slammed lower after Trump’s trade war tariff announcement
• Bessent: Trump might be to let things settle for awhile rather than negotiate tariffs
• The average US tariff rate might land around expectations
• Fed’s Kugler warns of prolonged impacts of tariffs on inflation
• Trump slams China with a 54% tariff rate
• Canadian dollar jumps as Canada exempted from new US tariffs
• European Union President von der Leyen to make a statement on US tariffs Thursday morning
• White House: Goods from Mexico and Canada that comply with the USMCA continue to be exempt
• US to impose 49% tariff on Vietnam
• Stock markets retreat as reciprocal tariffs sting
• Here’s the full list tariff war declaration
• Trump ‘auto’ tariffs will also include computers, laptops and desktops – report
• Its kiss your a** goodbye time for the global economy – massive tariff war declared
• Fed’s Kugler: Latest data indicate progress towards 2% inflation may have stalled
• Surge of buying into the USD, risk slapped back down, as Trump announces huge tariffs
• Trump tariff rates – more details – HUGE tariffs announced
• Trump says will sign reciprocal tariffs executive order
• Major US indices close higher ahead of Trump tariff news
• Forexlive Americas FX news wrap: Not many leaks in the final countdown to tariffs

Trump announced his latest trade policy,
introducing a series of tariffs aimed at addressing trade imbalances
and protecting domestic industries. ​

Key components of
the announcement include:

• Baseline Tariff: A
  universal 10% tariff will be imposed on all imported goods, effective
  April 5, 2025. ​
• Reciprocal Tariffs:
  Higher tariffs targeting specific countries (around 60 countries)
  perceived to have significant trade barriers against U.S. products
  will be implemented starting April 9, 2025.

Notable rates include:​

• China: 34%,
  increasing the total tariff to 54% when combined with existing
  duties.​
• European Union:
  20%.​
• Japan: 24%.​
• Vietnam: 46%.​
• India: 26%. ​

More:

• Auto Imports: A 25%
  tariff will be applied to all imported automobiles, aiming to bolster
  the U.S. automotive industry. ​
• De Minimis Rule
  Adjustment: The exemption for low-value packages (under $800) from
  China and Hong Kong will be eliminated, targeting e-commerce
  shipments that previously avoided tariffs. ​

The tariffs are set
to take effect in early April, with the baseline tariffs commencing
on April 5 and the reciprocal tariffs on April 9. ​

The abrupt tariff
hikes have heightened market volatility, with investors expressing
concerns about potential inflationary pressures and a slowdown in
global economic growth. Analysts warn that prolonged trade tensions
could lead to sustained market instability and dampened investor
confidence.

Most major FX was
slammed lower in the wake of Trump’s announcement of massive
increases in tariffs. The moves have been
pretty much retraced, FX recovering. EUR has done more than recover,
its up above 1.09 as I update.

• USD/JPY, though,
  lost ground from above 150.25 (early highs) to below 148.00 and that
  has continued. USD/JPY has hit lows circa 147.30 as the flight into yen
  carried through. The CHF rose also.

US equity index
futures were slammed lower upon the evening reopen for Globex. They’ve
since retraced. Asian equities:

• Japan: The Nikkei
  225 tumbled 3%, reaching an eight-month low, as investors reacted to
  the U.S.’s 24% tariff on Japanese goods. ​
• South Korea: The
  Kospi index declined by 1.5%, reflecting concerns over a 25% U.S.
  tariff on South Korean exports. ​
• Hong Kong: The Hang
  Seng Index fell 1.4%, with tech and manufacturing sectors hit hardest
  due to increased tariffs on Chinese goods

***

Yen rocketed:

This article was written by Eamonn Sheridan at www.forexlive.com.

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European Commission President von der Leyen

• US tariffs are a major blow to the world economy
• The consequences will be dire for millions of people around the world
• All businesses will suffer
• There seems to be no order in the disorder
• Agrees with Trump that others are taking unfair advantage of the current rules
• EU has always been ready to negotiate with the US
• Preparing for further counter measures on US tariffs if negotiations fail
• We are ready to respond
• We are preparing further package of measures to protect our interests
• Many feel let down by our old ally

This article was written by Eamonn Sheridan at www.forexlive.com.

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Most major FX was slammed lower in the wake of Trump’s announcement of massive increases in tariffs.

The moves have been pretty much retraced, FX recovering. EUR has done more than recover, its up above 1.09 as I update.

USD/JPY, though, lost ground from above 150.25 (early highs) to below 148.00 and that has continued. USD/JPY has hit lows 147.60 as the flight into yen carried through.

USD/JPY update:

This article was written by Eamonn Sheridan at www.forexlive.com.

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