This week brought new turmoil for financial markets as U.S. President Donald Trump moved forward with his plans to levy new tariffs against his country’s top trading partners.
In keeping with a longstanding campaign promise, he has followed through on his plan to impose a sweeping 25% tariff on most goods imported from Canada and Mexico and raise the tariff on Chinese imports from 10% to 20%.
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This decision effectively launched the U.S. into another trade war similar to the one it experienced in 2018.
All three nations have responded to this news with swift retaliatory measures, making it clear that they will not bow to Trump. Meanwhile, consumers and businesses are bracing for impact as they prepare for the economic consequences of rising prices.
With uncertainty spreading quickly, many stocks are struggling as investors consider the most strategic way to handle the trade war. However, experts have identified several tech stocks that they believe can withstand the coming storm.
The current trade war is heating up as tensions escalate between the United States and China, causing chaos for financial markets.
(Photo by Jim WATSON and PETER KLAUNZER / various sources / AFP) (Photo by JIM WATSONPETER KLAUNZER/AFP/POOL/AFP via Getty Images)
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Tech stocks to watch as Trump’s tariffs trend
When tariffs rise, particularly against a nation like China, the burden of rising costs is often shifted to consumers who are forced to pay more for things they can’t live without.
Now, China is hitting back at the U.S. despite initially holding back after the first round of tariffs. Its government has announced tariffs of its own, a move that is likely to undermine the competitiveness of U.S. tech companies with high exposure to China.
Related: China responds to tariffs with a shocking move
With these threats casting uncertainty over financial markets, some investors may be exercising extreme caution when making decisions. But some experts have outlined opportunities for growth, even in troubled market conditions.
Veteran investor James DePorre notes that despite the combination of new tariffs and slowing economic growth, the current climate will “eventually lead to some great opportunities.” He highlights AST SpaceMobile (ASTS) as a tech stock that is well-positioned to ride out the tariff storm, highlighting its niche in launching satellites to provide broadband service for smartphones.
“It is not subject to tariffs in the same manner as hardware,” DePorre says of AST. “The company is basically selling bandwidth on its satellites to companies like Verizon (VZ) , AT&T (T) and Vodafone (VOD) . There is no physical equipment being shipped.”
Ken Mahoney, CEO of Mahoney Asset Management, states that while most tech companies will be impacted by the tariffs, he sees more stability in companies that do not sell physical products.
“There are two standout tech stocks that are holding up a bit better than others in the market right now, and it is because they have no inventory. That is Netflix (NFLX) and Meta Platforms (META) ,” he states. Palantir Technologies (PLTR) is another that comes to mind that does not deal with physical inventory and is holding up in a key area here as well.”
Several AI leaders are considering a deal that could save IntelNvidia-backed startup could be hottest tech IPO of the yearTesla treats customers in China much differently than in the U.S.
While Mahoney also highlights Alphabet (GOOGL) as a potential winner, he notes that it has not performed well lately. “All these businesses’ fundamentals do not get affected as much as a retailer, or the car business, and others that rely a lot more on imports,” he concludes.
Even in tariff-driven chaos, there may be opportunity
Despite Mahoney’s measured take on Google, another expert sees it as a potential growth stock for the tariff era.
Marcus Sturdivant Sr, Managing Member/Advisor of The ABC Squared, names it a tech stock to watch, noting, “Trading around 21 P/E and paying a symbolic dividend adds to the potential for growth and stability. Google also has a market cap of over 2 trillion dollars and a lot of assets under its name.”
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That said, Sturdivant also flags several other companies he believes offer investors more stability in the current uncertain climate, including Chinese tech leader Alibaba (BABA) . He highlights billionaire investor David Tepper’s recent bets on Chinese companies as a bullish indicator.
“This is an example of targeted international investment, buying a company versus the overall China Indexes,” he states. “How long China and International trade lasts is to be determined as they also face tariffs and pressure to grow the Chinese economy.”
Additionally, Sturdivant expresses confidence that the artificial intelligence (AI) boom will continue to lift some tech stocks, though he is focused on companies such as Accenture (ACN) and Cisco Systems (CSCO. He notes) that popular tech leaders such as Apple AAPL and Nvidia NVDA run a higher risk of becoming overbought.
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