Trump’s pricing wars have brought disproportionate uncertainty to the stock market, which makes it more and more difficult to identify companies positioned to resist the storm.
It’s been almost two months since the announcement of the “Liberation Day of President Trump, during which he presented a litany of new pricing policies In an effort to equalize trade relations that the main partners such as China, Europe and Canada.
Since the April 2 announcement, the S&P 500,, Nasdaq CompositeAnd Industrial average Dow Jones have each known two -digit decreases – only to bounce strongly in recent weeks, because certain updated commercial transactions have appeared. Even if the market has been roaring lately, I do not yet think that investors are out of the woods.
Price policies can change quickly, and for the moment, it is always difficult to discern which companies can be stronger because of these new commercial transactions.
Below, I will detail how the prices work and highlight two companies which, in my opinion, could emerge as winners of Trump’s pricing wars.
How do the prices work?
Prices are a tax that is imposed on imported or exported goods. In general, prices are used as a mechanism to bring other countries to the table and negotiate new conditions in trade agreements.
In addition, prices can also be a way to put pressure on companies to increase national manufacturing rather than outsourcing work abroad.
Although this may seem well in theory, economists fear that more manufacturing investments in the United States are an expensive company for businesses – therefore, they can choose to transmit these expenses to the consumer, stimulating inflation.
Image source: Getty Images.
1. Home Depot
During periods of inflation or high interest rates, consumers may postpone investing in home improvement projects or purchase in real estate. Although this can give investors an initial feeling of concern to Home Depot (Hd -0.03%))There is no more image.
The owners know only too well that certain projects simply cannot be ignored. Considering that the home improvement industry in the United States is essentially a duopoly Between Home Depot and Lowe’sThe company is always positioned to absorb a large part of this request.
HD income (TTM) data by Ycharts
According to the graph above, investors can see that over the past two decades, Home Depot has been able to systematically increase income and operating margins – even in times of economic uncertainty. For reference, the two gray shaded columns represent American recessions. Although there was a decline in the affairs of Home Depot during these times, the company was finally able to exceed these challenges. I see the current tariff situation as not different.
Considering Home Depot gets more than half of its inventory National sellers, the company will probably not have to increase the costs of foreign imports compared to small competitors or niche retailers. This is important because the majority of the company’s goods already come from the United States – which makes it unlikely to increase prices and stifle the purchasing power of consumers.
The company has carried out a number of strategic measures to strengthen its supply chain, while putting the customer first. For this reason, I think that the Home Depot’s business model will keep in a terminating manner during this period of pronounced tariffs and its stores will remain an essential pocket of the otherwise sensitive retail industry.
2. Nucor
The next step on my list is the steel producer Nucor. In the table below, investors can see that Nucor’s shares have fallen into disgrace with investors throughout 2025.
While the actions rebounded in April (in parallel with Trump’s pricing announcement), the stock is still faced with pressure. To start, the steel industry is cyclic. This makes the expectations of constant growth somewhat unrealistic. Despite these dynamics, I see Nucor on the precipice of certain lucrative opportunities.
Higher prices for steel imported from other countries, especially China, should increase for Nucor. In addition, since Trump took office in January, a number of companies in many different industrial sectors have committed to increasing national manufacturing. The head of these initiatives is Project Stargate, a vision of $ 500 billion for more Artificial intelligence infrastructure in the United States
I consider these factors as major rear winds for the steel industry, and I think that Nucor is positioned to capture part of these expenses. For this reason, the moment could be the right time to Buy the dip As Nucor’s growth could witness a strong rebound as soon as possible.
Adam Spatacco Has no position in the actions mentioned. The Motley Fool has positions and recommends Home Depot. The Motley Fool recommends Lowe companies. The Word’s madman has a Disclosure policy.
