Several companies will benefit relative to the broader market if a global trade war emerges, UBS told clients Monday.
In light of President Donald Trump’s tariffs on Chinese goods and proposed levies on industrial and technological imports, a number of domestically oriented companies in those sectors could be safer stock bets, according to Keith Parker, head of U.S. equity strategy at UBS.
“Proposed products subject to tariffs will include machinery, info/comm technology, and aerospace,” Parker wrote to clients. “That means that domestic producers of products subject to tariffs could actually benefit; we list firms in those industries with a higher proportion of domestic sales/assets.”
Trump’s recent move to impose tariffs on up to $60 billion in Chinese imports stoked fears of a global trade war last Thursday, when the president told the public that the action would be “the first of many.” Beijing responded the next day, saying it may target 128 U.S. products with an import value of only $3 billion; the action – though mild – was enough to spur concerns of broader, more intense retaliation down the road.
Parker screened the S&P 900 for companies that could be affected by the Trump administration’s tariff policies, concluding that aerospace and machinery companies like Raytheon and Rockwell Automation could outperform.
Here are some of the companies UBS highlighted.
