5 Sectors That Could Benefit from Trade Wars
At Monument Traders Alliance, we don’t play politics with our trading.
Whether you vote blue or red – it doesn’t matter.
We’re all about green, meaning we’re here to provide you with the best trade opportunities.
And the truth is…
In light of President Donald Trump’s latest tariff trade war, I’m looking at domestic companies with minimal exports for buy opportunities.
Here are 5 sectors worth paying attention to.
1. Steel and Aluminum
Higher tariffs on imported metals (e.g. from China) could benefit steel and aluminum producers like Nucor (NUE) and Steel Dynamics (STLD).
Nucor is the largest U.S. steel producer, with most sales in North America and a minimal reliance on exports.
Steel Dynamics is another major steel company with a primarily domestic customer base.
2. Defense & Aerospace
A more protectionist stance could favor domestic defense contracts like Lockheed Martin (LMT) and Raytheon (RTX), especially if national security concerns justify tariffs on foreign-made components.
Northrop Grumman (NOC) is another company that primarily serves the U.S. Department of Defense, with limited international sales.
Huntington Ingalls (HII) is the sole builder of U.S. aircraft carriers, with business almost entirely tied to the U.S. government.
3. Energy (Oil & Gas)
As the U.S. imposes tariffs and other countries like Mexico, Canada and China retaliate, there could be a higher demand for our own oil and energy.
Domestic companies like ExxonMobil (XOM) and Cheron (CVX) are in play.
For utilities, Duke Energy (DUK) is a regulated company with all operations in the U.S., benefitting from infrastructure spending.
4. Industrial Equipment
U.S.-based manufacturers of machinery, heavy equipment, and tools could gain if tariffs make foreign imports more expensive. Companies like Caterpillar (CAT) and Deere & Co (DE) are among the top domestic providers.
5. Food & Consumer Goods
Earlier this week, my colleague Bryan Bottarelli wrote about tariff-protected stock McCormick & Company (MKC).
He got positioned on MKC that same day closed for a 25% winner in less than 1 trading day.
A few other heavily domestic food and consumer companies include Post Holdings (POST), a packaged food company with a heavy focus on U.S. markets, including cereals, frozen foods and snacks.
There’s also TreeHouse Foods (THS) – a private-label food manufacturing mainly supplying domestic grocery stores.
YOUR ACTION PLAN
All of these sectors are in play as long as Trump’s trade wars continue.
But there’s one other area that’s exploding as a result of recent market headwinds.
The metal recently hit new all-time highs, and is up 12% since the start of the year.
We recently got positioned a gold company that could spike if a specific event happens.
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