Ahead of his second term in office, President-elect Donald Trump has threatened to slap a 25% tariff on all goods from Canada and Mexico and a 10% tariff on all products from China. Meant to incentivize the target nations to block the entry of illegal drugs such as fentanyl and of unauthorized migrants to the U.S., such tariffs could impact industries ranging from automakers to zucchini growers.
So you may be wondering how you can profit from the tariffs or any retaliatory levies by foreign countries—and whether there are any investments or portfolio steps you should avoid. The answer: There are plenty.
We discussed six of the savviest steps with money managers and financial advisors. They all easily lend themselves to buys and sells that you can do on your own in any of the best brokerage accounts or individual retirement accounts (IRAs) that you happen to use.
Paul Schatz, president of Heritage Capital and treasurer of the National Association of Active Investment Managers (NAAIM), thinks any Trump tariffs—if they occur—are likely to undergo modifications stemming from congressional and diplomatic give-and-take.
“[But] if the tariff plan is enacted and nothing else happens, then investors should focus [their buys and holds] on purely domestic companies with domestic supply chains,” Schatz said. “In the tech space, that would be groups like software, communication services, and the internet. Financials, banks, insurance, and capital markets are all immune from tariffs. Health care, biotech, and energy would also benefit.”
If you’re looking to buy, Schatz recommended considering ETFs like these six below as long-term investments. You can see each ETF’s expense ratio and top three holdings per the fund’s website, plus total returns through Nov. 29, per Morningstar.com:
As for investment “don’ts,” financial planner and wealth manager Said Israilov at Israilov Financial told us that he advises investors to avoid the Global X MSCI China Consumer Discretionary ETF (CHIQ). That ETF holds Chinese consumer discretionary goods companies, which he said stand to be hurt by tariffs.
“This ETF holds dozens of consumer discretionary companies including major ecommerce retailers like Alibaba (ADR: BABA), JD.com (JD), and Pinduoduo (ADR: PDD) as well as large automakers like BYD (ADR: BYDDY), and Geely (GELYF),” Israilov said.
SonicShares Global Shipping ETF (BOAT) is another one of Israilov’s investment don’ts. That’s because tariffs will likely reduce the amount of goods transported by the global shipping industry.
Invesco China Technology ETF (CQQQ), many of whose Chinese high-technology manufacturing companies make the sort of technology products—smartphone lenses, semiconductor chips, processor chips, and equipment for data centers—is another ETF to avoid, according to Israilov. He told us that the companies in this ETF are likely a target of tariffs.
Chartered financial analyst Michael Ashley Schulman, partner and chief investment officer of Running Point Capital Advisors, did not tell us his outright recommendations, but he said certain securities “could be affected” by tariffs, and investors should decide for themselves how to proceed. He pointed out the following ETFs linked to countries facing tariffs (YTD total returns are per Morningstar, as of Nov. 29:
In which investment accounts should you hold tariff-safe ETFs? From which accounts should you eliminate tariff-vulnerable ETFs, or at least trim your exposure? You can take those steps in your taxable brokerage accounts as well as your traditional IRAs, Roth IRAs, and 401(k) accounts. Those retirement accounts shelter your investments from yearly taxes. Traditional IRAs and 401(k)s also offer up-front tax deductions for your contributions. Roth IRAs offer tax-free withdrawals for properly timed withdrawals of investment earnings and of your contributions at all times. The combined annual contribution limit for Roth and traditional IRAs for the 2024 tax year is $7,000, or $8,000 if you're age 50 or older.
| Company | Account Minimum | ETF Screeners | ETF Trading Fee |
| Fidelity | $0 | Yes | $0 |
| Charles Schwab | $0 | Yes | $0 |
| E*Trade | $0 | Yes | $0 |
| Vanguard | $0 | Vanguard ETFs Only | $0 |
| Interactive Brokers | $0 | Yes | $0 |
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