Who will benefit from the trade war?

Organised crime will benefit from the global trade war. Donald Trump's sweeping tariffs have caused significant disruption to global supply chains, creating incentives for smuggling, counterfeiting and black-market trading.

Who benefits from a trade war?

Advocates say trade wars protect national interests and provide advantages to domestic businesses. Critics of trade wars claim that they ultimately hurt local companies, consumers, and the economy.

Which stocks benefit from the trade war?

While there are no winners in a trade war, there may be some relative winners in the global stock market for investors to consider including more domestically focused companies, European stocks, travel and leisure stocks outside the U.S., stocks in Mexico, Canada and Latin America.

Which countries benefit from the US-China trade war?

Countries like Mexico and Thailand, for example, benefited because they already exported products that could replace Chinese exports to the US.

Who benefits from high tariffs?

The workers who benefit most from an increase in tariffs are the unskilled workers in the import-competing sector.

How Investors Could Benefit From a Potential Trade War

Who gains and who loses from a tariff?

As a result, even within the same sector, some firms gain while others lose. Consumers are often the most consistent losers in a tariff regime. When import duties raise the cost of goods, retailers and suppliers frequently pass on those costs to end buyers.

Who benefits from a recession?

Higher interest rates that often coincide with the early stages of a recession provide an advantage to savers, while lower interest rates moving out of a recession can benefit homebuyers. Investors may be able to find bargains on assets that have decreased in price during a recession.

Did Obama put tariffs?

Bush and Barack Obama imposed quotas and tariffs on Chinese textiles in order to shield US domestic producers, accusing China of exporting these products at dumping prices.

Who imports more, the US or China?

The United States is the largest goods importer in the world. U.S. goods imports from the world totaled $3.2 trillion in 2022, up 14.6 percent ($413.7 billion) from 2021. China was the top supplier of goods to the United States, accounting for 16.5 percent of total goods imports.

Are tariffs good or bad?

Trade tariffs remain a double edged sword, offering both economic leverage and potential disruption. While they can serve as a powerful tool in trade negotiations and domestic industry protection, their broader economic consequences—rising costs, supply chain disruptions, and market volatility—cannot be ignored.

Where to invest during a tariff war?

However, if you want to potentially buffer your portfolio from the ups and downs, you could consider stocks in companies with more domestic sales exposure, such as those in the utilities and communication services sectors. Alternately, some international diversification could reduce the effects.

What happens to stocks during a trade war?

Uncertainty and Volatility

Stock market volatility often increases during trade wars, with investors reacting to the latest tariff announcements, retaliatory measures and political statements. This uncertainty can lead to sharp swings in equity prices, such as those we are seeing now.

Which companies will do well with tariffs?

No company can entirely avoid the impact of tariffs, but some will handle them better than others. Coca-Cola (NYSE: KO) and Netflix (NASDAQ: NFLX) are among the corporations that are likely to fare better than most in a higher tariff environment. Here's what investors need to know. Image source: Getty Images.

Can a trade war turn into a war?

But historically speaking, many hot wars have their roots in some kind of trade-related tensions between nations. So the risk exists that a trade war one day becomes a hot war.

When did the trade war start in 2025?

On February 1, 2025, a trade war between the U.S, Canada and Mexico began when the U.S. president Donald Trump signed orders imposing near-universal tariffs on goods from the two countries entering the United States.

What usually happens during a trade war?

A trade war is when countries use economic barriers to deter the influx of goods or resources from another country. If Country A produces almonds, Country B might add a tariff on those almonds. This will likely reduce the amount of almonds sold in Country B, creating financial strain for Country A.

Who is America's biggest trading partner?

Trade with Major Partners. Canada returned to its position as the top U.S. trading partner in 2021, after dipping below China and Mexico in 2020. China fell to second place and Mexico to third, followed by Japan and South Korea as the fourth- and fifth-largest U.S. trading partners in 2021, respectively.

Who is the largest exporter in the world?

As per export-import data, the biggest exporter in the world is China, with an export value of USD 3.51 trillion. China is also considered one of the export powerhouses of the world. China has continuously outperformed other major trading nations in terms of total exports, making it the world's largest exporter.

What is the #1 import to the USA?

Machinery (including computers and hardware)

Topping the list of US imports is machinery that cost more or less $475.9 billion in 2023. Major suppliers machinery and equipment, including computers, hardware components, and industrial machinery are China, Mexico, Japan, Canada and Germany.

What did Obama do for the country?

When did Donald Trump impose tariffs?

Trump also claimed unprecedented tariff authority under the International Emergency Economic Powers Act (IEEPA). On April 2, 2025, he invoked the law to impose "reciprocal tariffs" on imports from all countries not subject to other sanctions. A universal 10% tariff took effect on April 5.

What was the tire tariff in 2009?

In response to a petition from the union that represents tire manufacturing workers, the Obama administration imposed punitive tariffs on tires imported from China from the normal rate of 4% all the way up to 35% in September of 2009 (for a full year), followed by a 30% tariff in 2010 and then a 25% tariff in 2011.

What sells the most in a recession?

How long did the 2008 recession last?

Lasting from December 2007 to June 2009, this economic downturn was the longest since World War II. The Great Recession began in December 2007 and ended in June 2009, which makes it the longest recession since World War II.

Will there be a recession in 2025?

The odds that the economy will slip into a recession are nearly 50-50, and the time of greatest vulnerability will run from late 2025 to early 2026, according to Moody's Analytics chief economist Mark Zandi.