2 Tariff-Proof Stocks to Buy as Trump Threatens 70% Tariffs

Key Points

Trump's trade agenda has rocked and shaken equity markets this year. It's been a bit of a roller-coaster ride, and although stocks have somewhat recovered from the beating they took earlier this year due to the president's proposed tariffs, we are not out of the woods just yet. Trump is still pushing aggressive tariffs -- he recently threatened to impose some as high as 70% on various countries. Amid all this uncertainty, it's worth it for investors to buy shares of companies that the president's trade policies won't significantly harm.

No company can entirely avoid the impact of tariffs, but some will handle them better than others. Coca-Cola (NYSE: KO) and Netflix (NASDAQ: NFLX) are among the corporations that are likely to fare better than most in a higher tariff environment. Here's what investors need to know.

2 Tariff-Proof Stocks to Buy as Trump Threatens 70% Tariffs

1. Coca-Cola

Coca-Cola is one of the most recognizable brands globally. The beverage specialist has operations in practically every country. The company bypasses tariffs on imported goods due to its significant manufacturing footprint in most regions where it operates. As the company's CEO, James Quincey, recently said: "The vast majority of everything that's consumed in the U.S. is made in the U.S."

Although it still imports parts and materials used in its manufacturing process (most companies do), some of which will be subject to tariffs, Coca-Cola is better positioned than most. This aspect of Coca-Cola's business partly explains why it has outperformed the broader market this year.

Furthermore, investors may also be drawn to the company due to its position as a leader in the consumer staples industry . Companies in this field are generally resilient during economic downturns.

As some fear that the Trump administration's trade policies might lead to economic troubles, companies like Coca-Cola appear more attractive. That said, investors shouldn't worry too much about what might transpire in the next year or so. The good news is that there are excellent reasons to invest in Coca-Cola for the long term. Let's consider three of them.

First, the company has a strong moat thanks to its brand name. The Coca-Cola logo inspires confidence and attracts consumers in both good times and bad, resulting in somewhat consistent revenue and earnings. Even when Coca-Cola's financial results take a hit -- as they did during the early pandemic years -- the company's robust underlying operations mean that it can survive the ordeal and perform well long after the dust has settled.

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