If you're tired of trade tensions, consider these 5 investment options to detach from the tariff ride driven by the Trump administration.
Amidst the tumultuous economic landscape of 2025, investors continue to navigate the effects of tariffs imposed by the Trump administration. The S&P 500 initially started the year on an upward trajectory but plummeted following the announcement of these tariffs, entered a bear market, and has since recovered some of its losses.
In light of the market turbulence, there are several investment options less vulnerable to the impact of tariffs. Here are five such investments that investors might find beneficial:
Five Tariff-Resistant Investments
1. Gold
Over the years, gold has emerged as a preferred holding among investors in tumultuous economic times. The precious metal has demonstrated significant growth in 2025, with gains of over 25 percent and a further climb of almost 6 percent since the tariffs were announced. Despite its recent success, it is essential to be mindful that gold often experiences prolonged periods of underperformance. For this reason, it is best to maintain gold holdings at a relatively modest percentage in a diversified portfolio.
2. Real Estate
Real estate can serve as a shelter from the storm of tariffs, as it is typically influenced more by local market conditions rather than tariff-related issues. However, it is essential to remember that increased costs for construction materials can indirectly impact real estate values. For those considering real estate investments, some high-performing real estate investment trusts (REITs) can offer prospects for growth and diversification.
3. International Stocks
Diversifying one's portfolio by investing in international stocks can provide protection against tariffs by minimizing exposure to a single market. Companies doing primary business outside the United States are less likely to face the same business disruptions as domestic counterparts encounter in response to new tariffs and potential retaliation. As of mid-May 2025, the Vanguard FTSE All-World ex-US ETF (VEU) has appreciated about 14 percent, significantly outperforming the S&P 500.
4. Bonds
Bonds can offer a measure of protection during periods of economic turmoil. During high-volatility periods, investors often flock to government bonds, leading to lower yields and higher prices. In the event that tariffs push the economy into a recession, bonds could benefit from the subsequent cuts in interest rates by the Federal Reserve. However, it is important to note that tariffs could potentially result in higher inflation, which could negatively impact bond investors.
5. Individual Stocks or Industries
Not all domestic companies or industries are equally susceptible to tariff-induced challenges. For instance, the automotive sector may face greater impact than industries such as technology. By researching specific companies and analyzing their potential tariff-related vulnerabilities and growth prospects, investors may find stocks with tariff protection and the potential for continued growth. Tech companies and traditional defensive sectors such as consumer staples, healthcare, and utilities could serve as resilient options during this period of trade tensions.
In the volatile economic landscape of 2025, investors seeking alternatives to the stock-market may consider gold, real estate, international stocks, bonds, or individual stocks or industries. For example, investors could opt for gold as a holding during turbulent times, or invest in real estate to find shelter from tariff-related effects, albeit indirect construction costs could affect its value. International stocks can provide protection against tariffs by minimizing exposure to a single market, while bonds offer a measure of protection during periods of economic turmoil. By researching specific companies and their tariff-related vulnerabilities, investors might uncover stocks in sectors like technology or consumer staples, healthcare, and utilities, which could prove resilient during this period of trade tensions.
