Global trade tensions have caused a noted drop in the value of the S&P 500 index in the first quarter of 2025. Tariffs threaten delicate supply chains and global trade uncertainty tends to result in stock selloffs — with investors opting for safer havens.
That said, not all equities are equally exposed to this emerging risk of tariffs. In the US, businesses with a strong foothold in the domestic market and minimal reliance on imports can weather the pressure of a global trade war. What’s more, 2025 might well be an opportune time for many of these companies as their competitors face strong headwinds.
Let’s take a closer look at some potentially “tariff-proof” stocks companies that are worth checking out as trade tensions continue to rise across the globe.
Stock |
Icon |
1-year performance (to Apr. '25) |
5-year performance (to Apr. '25) |
Link |
|---|---|---|---|---|
| Microsoft Corporation (MSFT) |  |
-6.24% | 119.05% | More info |
| Duke Energy Corporation (DUK) |  |
28.12% | 37.69% | More info |
| CVS Health Corp (CVS) |  |
0.35% | 10.61% | More info |
| Nucor Corp (NUE) |  |
-42.88% | 212.08% | More info |
| Texas Roadhouse (TXRH) |  |
9.69% | 287.39% | More info |
Source: TipRanks, March 2025.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
If you're interested in investing in this industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn't guarantee that a stock will continue to rise in the future.
Microsoft has minimal reliance on physical imports of any kind — to the contrary, the brainchild of Bill Gates now draws most of its profits from high-margin software and cloud computing. Better yet, these are mostly subscription-based services, which secure a steady stream of recurring revenue for the tech giant. What's more, Microsoft maintains a strong economic moat. All of this combines to provide Microsoft with a level of pricing power that's a rare sight in the high-growth tech sector. Despite post-earnings selloffs, Microsoft has provided a string of standout earnings quarters as of late — with impressive growth metrics all around.
Microsoft Corporation is listed on the NASDAQ, has a trailing 12-month revenue of around 261.8 billion and employs 228,000 staff.
Capital at risk
As one of the largest utility companies in the United States, Duke Energy happens to be quite naturally insulated from trade tensions. Unlike businesses that rely heavily on global supply chains or imported materials, the core business operations of utility stocks — delivering electricity and natural gas — are tied to domestic infrastructure. This gives them a stable, recession-resistant revenue stream that can't be directly impacted by tariffs or geopolitical trade disruptions. What's more, energy isn't exactly a discretionary category — whether tariffs cause resurgent inflation or a recession is entirely irrelevant to how Duke Energy makes its money. With analysts maintaining a stable to bullish outlook, Duke remains a top utility play for investors seeking tariff-proof resilience.
Duke Energy Corporation is listed on the NYSE, has a trailing 12-month revenue of around $29.9 billion and employs 26,413 staff.
Capital at risk
CVS Health stands out as a strong defensive play, largely insulated from trade disruptions due to its domestic revenue base and essential healthcare services. In recent years, the company has expanded beyond retail pharmacy into primary care and digital health, reinforcing its competitive edge. A key move in this direction was the acquisition of Oak Street Health, a growing network of value-based primary care centres. By integrating primary care, CVS is strengthening its vertical business model, increasing customer retention and positioning itself as a one-stop healthcare provider.
CVS Health is listed on the NYSE, has a trailing 12-month revenue of around $370.7 billion and employs 219,000 staff.
Capital at risk
Nucor is the largest steel producer in the US, making it one of the few industrial stocks that stand to benefit from tariffs. Beyond tariffs, Nucor's use of mini-mill technology allows for cost-efficient, flexible production. The steel industry tends to move in cycles, with demand fluctuating based on broader economic conditions. While tariffs on imported steel provide Nucor with a layer of protection against foreign competition, factors like interest rates, construction activity and the strength of the US dollar will still play a major role in determining demand.
Nucor is listed on the NYSE, has a trailing 12-month revenue of around $30.7 billion and employs 32,700 staff.
Capital at risk
Texas Roadhouse is largely shielded from trade disruptions thanks to its domestic focus and sourcing strategy. Though it does source beef from Canada, the company sources most of its beef from US cattle ranches, reducing its exposure to global supply chain risks. The company has also built a strong brand presence and customer loyalty, consistently reporting impressive same-store sales growth and high average revenue per location. Rising food and labor costs remain challenges, especially with beef prices being a major expense.
Texas Roadhouse is listed on the NASDAQ, has a trailing 12-month revenue of around $5.4 billion and employs 95,000 staff.
Capital at risk
Considering investing in one of these stocks? Take a look at a few leading brokerage apps to get started.
For investors, tariffs create both risks and opportunities. Sectors that rely on imported raw materials or components — such as automotive, consumer electronics and industrial manufacturing — face higher input costs and potential margin compression.
On the other hand, industries with strong domestic supply chains and minimal reliance on foreign imports are more resilient and, in some cases, could see market share gains as imported alternatives become more expensive.
Diversification into tariff-resistant sectors has become increasingly important in this environment. Companies in utilities, healthcare and software technology tend to have stable revenue streams with little exposure to trade disputes. Meanwhile, select industrial firms — such as domestic steel producers — may actually benefit from protective trade policies.
There’s also the matter of sectors to consider. Traditional defensive sectors such as healthcare and utilities will most likely, as they usually do, provide a degree of stability — while tech stocks with competitive advantages are well-positioned to sidestep tariff impacts and provide outsized returns.
Unlike hardware manufacturers that depend on imported components, software companies generate revenue from digital products and cloud-based services. These businesses face little exposure to tariffs on physical goods and often benefit from high margins and recurring revenue streams. Companies in enterprise software, cloud computing and cybersecurity are particularly well-positioned.
Electricity and natural gas providers operate within highly regulated domestic markets, making them one of the least affected sectors when it comes to trade policy. Utility companies generate consistent revenue, often through long-term contracts, and can pass rising costs onto consumers through rate adjustments. Their defensive nature makes them an attractive choice during periods of economic uncertainty.
Pharmaceuticals, healthcare services and insurance providers tend to have minimal exposure to trade restrictions, as demand for healthcare remains stable regardless of economic conditions. While certain medical equipment and drug ingredients are imported, large domestic healthcare firms have strong pricing power and established supply chains that help mitigate tariff risks.
Restaurants, retail chains and other service-based businesses that operate primarily within the US are generally less affected by global trade policies. Companies that rely on local supply chains and have strong brand loyalty can navigate rising costs more effectively than import-heavy retailers. The most resilient businesses in this category focus on essential or in-demand services rather than discretionary goods.
While no investment is completely immune to broader economic pressures, the unique challenges posed by tariffs can actually benefit a select few well-positioned businesses. Choosing the best trading app and investing before the trade war escalates further could lead to outsized gains or serve as a hedge against losses from other holdings in your portfolio. However, things could worse before they get better and no investment is ever a sure thing.
All investing should be regarded as longer term. The value of your investments can go up and down, and you may get back less than you invest. Past performance is no guarantee of future results. If you’re not sure which investments are right for you, please seek out a financial adviser. Capital at risk.
Looking for the best defence companies to invest in? Discover key players plus risks and rewards of this sector.
Find out how to invest in aluminium stocks, plus some popular stock options.
What to know before investing in this fossil fuel that’s critical to energy production.
As the name suggests, penny stocks offer potential growth at a low cost but are also high risk.
IPOs could be an opportunity for investors. Check out our calendar of upcoming IPOs in 2023 and keep tabs on rumoured, recent and filed for IPOs.
Fractional shares are fractions of company shares. Sometimes they’re made by brokers to allow those with limited funds to get access to stocks.
What are dividend stocks, and how do you invest in them in the UK? We explain how to find stocks with high dividend yields and details about safe dividends.
All the steps you need to follow to buy shares in some of football’s biggest teams.
Learn where to buy gold, how to invest in gold and about gold’s historical performance as an investment. Find out all the need-to-knows with our extensive guide.