President Donald Trump’s “Liberation Day” tariffs are closing in. They are set to go into effect on Wednesday, April 2, 2025. These reciprocal tariffs could have a severe impact on industries, especially over the long term. Tariffs might affect trillions of dollars in imports. This move targets countries with high trade deficits or significant barriers against U.S. goods. As a result, sectors like manufacturing, automotive, and retail could face higher costs and disrupted supply chains. The potential for escalation even raises the specter of a recession if global trade tensions boil over.
The stock market has reacted negatively so far, but not all stocks move in tandem. Some stocks could actually gain from these tariffs if their underlying businesses have significant foreign competition. These businesses can then sell more and at higher margins. If you believe in the long-term potential, now might be the time to buy into stocks that could thrive under these tariffs. Here are three to look into:
Micron Technology (NASDAQ:MU) may not be the most usual pick if you are looking at tariff-proof stocks, but I think it’s a standout option since some of its biggest competitors are based overseas. Samsung and SK Hynix are mainly why Micron Technology has had trouble in the past and has had to keep its margins low. However, if hefty tariffs push out these foreign players, there are going to be massive benefits for Micron.
This is one of the only major U.S.-based memory manufacturers and it has a solid domestic manufacturing presence. South Korea hasn’t been the loudest name in the tariff conversation yet, though the ripple effects of a broader trade war could still hit. Samsung and SK Hynix dominate the memory chip market. Both of these companies especially dominate when it comes to DRAM and high-bandwidth memory for AI and data centers. If tariffs raise the costs here, Micron looks massively stronger.
The stock is already down 31.6% over the past year to $85 as of writing. MU stock is only up 105% over the past five years despite the AI and data center boom, so I see solid upside potential ahead. It grew its revenue by 38.3% to $8.05 billion and almost doubled its net income to $1.58 billion in the latest quarter. Both the top line and the bottom line beat estimates.
Century Aluminum (NASDAQ:CENX) is one of the more classic tariff-resistant plays. This company is a major producer of primary aluminum and it is used to make everything from car parts to beer cans. It operates smelters across the U.S. CENX should thrive if aluminum imports are pressured by tariffs.
A big chunk of aluminum is flooding the U.S. market from Canada, China, Russia, and the UAE. China’s a particularly thorny rival because its state-subsidized producers often dump cheap aluminum onto global markets and undercut Century Aluminum. A 25% tariff was slapped on all steel and aluminum imports earlier this year already, so further tariffs on top of that are going to give it a huge leg up.
EPS is expected to surge 161.3% to $2.9 for the full year 2025, along with accelerating sales growth from 5.6% this year to $7.25% next year and 12.7% in 2027.
Cleveland-Cliffs (NYSE:CLF) is the largest flat-rolled steel producer in North America. It mines iron ore and makes iron ore pellets at its facilities in Minnesota and Michigan. Further tariffs would help this company significantly.
The stock is down 36.1% in the past six months, and many argue that the low demand makes it risky, but I think the risk-reward ratio here is worth it since the stock has traded at around $7-8 before COVID and could deliver multibagger returns once the pendulum eventually swings the other way. Short-term losses may happen, but the long-term returns here are very hard to ignore. Q4 2024 saw the lowest steel demand since 2010, but I believe a turnaround is close. It also has room to increase production dramatically as demand increases.
The consensus price target of $16.43 implies 101.2% upside.
