Tariffs against China, Mexico, and Canada have now been implemented after delays and negotiations, with potential serious implications for the US and global economies. Market experts have identified key sectors that could benefit or suffer from these aggressive trade policies. Tariffs are designed to be protectionist, boosting domestic industries. Service-oriented companies, such as those in software, healthcare, and consulting, are expected to outperform as they are less reliant on imported goods. Defensive stocks providing essential goods and services will also likely perform well, as demand remains stable regardless of economic conditions. Mid-cap stocks, particularly in industrials, financials, and healthcare, are seen as strong domestic players. On the fixed-income side, US Treasurys are considered a safe bet in a high-tariff environment, with potential for longer-duration bonds to benefit from a dovish rate policy. Conversely, long-term tariffs could hinder economic growth, with predictions of increased inflation and reduced GDP. The auto industry is expected to be hit hard due to integrated supply chains, while raw materials like steel and aluminum will become more expensive. — news from Business Insider
