That's the thinking behind a list of stocks Morgan Stanley published in a client note on Monday.
The bank's top equity strategist, Mike Wilson, had his team of analysts put together a list of companies that they think are most protected from tariffs compared to other firms in their respective industries, perhaps because they can pass along the higher import costs to consumers.
The note came amid news that President Donald Trump's trade war with Canada, Mexico, and China is back in full force — for now, at least.
Stocks fell on Tuesday on the news as investors worried about the ramifications for inflation, interest rates, and corporate earnings.
While Commerce Secretary Howard Lutnick has hinted that the 25% tariffs imposed on America's two neighbors and the 20% import fees on Chinese goods could be reduced soon, it remains unclear to what degree they could come down and for how long. New tariffs on goods from European Union countries are also expected at some point.
Below are the 18 stocks on the list that Morgan Stanley also has an "Overweight" rating on, meaning the bank thinks investors might do well to hold the stock in their portfolios above its weight in the S&P 500. Their industry group and the Morgan Stanley analyst that covers the stock are also included.
