4 “Tariff-Proof” Sectors to Buy for 2025

President Trump’s push for tariffs with America’s trading partners, only about a week old, is already having a big impact on the financial markets.

On February 1, President Trump said he was triggering the International Emergency Economic Powers Act due to “the extraordinary threat posed by illegal aliens and drugs, including deadly fentanyl.”

Until the crisis passes, President Trump slapped a 25% additional tariff on imports from Canada and Mexico and a 10% additional tariff on imports from China. Energy resources from Canada will have a lower 10% tariff.

Some of those tariffs have been suspended after negotiations between the US and Mexico, though it’s unclear how long that will last, as neither country agreed to anything they weren’t already doing. In the meantime, the expanded tariff skirmishes are having a big effect on the US stock market.

But here are four market sectors that are virtually “tariff-proof.”

According to JPMorgan Chase’s 2025 E-Trading Insights, most traders worldwide say that tariffs (and inflation) are the most significant market impactors in 2025.

“Tariffs aren’t simply random taxes on imports—they’re a political and monetary strategy,” said James Francis, CEO at Paradigm Asset Management. “Right now, the Trump management is slapping price lists on Chinese items, elevating prices on the whole lot from metallic to semiconductors.”

What does this suggest for the inventory marketplace? Volatility, for starters.

“When price lists pass up, corporations that depend on imports see their prices rise,” Francis noted. “Some companies skip the prices directly to consumers, even as others take the hit of their earnings margins. Either way, it creates uncertainty, and buyers tend to get nervous.”

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Four “Immune” Sectors

On the upside, some industries have historically been immune to tariffs and trade wars. Here’s a snapshot of three sectors that should be safe right now.

Select technology plays. “To avoid tariff turbulence, focus on industries that don’t import a lot of goods from abroad,” said Rich Smith, a contributing analyst at The Motley Fool.

For example, the technology sector may be one walled-off sector.

“Software code can be created without the importation of significant quantities of widgets from abroad, and so should be insulated from tariffs risk,” Smith notes. “Simultaneously, tech stocks could be at risk from retaliatory measures by countries responding to American tariffs. For example, China reportedly responds to US tariffs by investigating Alphabet over ostensible antimonopoly concerns.”

Microsoft (MSFT) could be one sector stock that offers some tariff insurance. “Microsoft makes its cash from software programs, cloud computing, and company offerings,” Francis said. “They don’t depend as much on imported items, making the company surprisingly secure from change disruptions.”

Utilities. Another relatively safe sector is utilities, particularly energy utilities that produce power from American-sourced oil and gas.

“Bargains might be easier to find here than in the red-hot tech sector,” Smith added. “Investors might look at something like Dominion Energy (D), for example. At less than 21 times earnings, it’s cheaper than most S&P stocks, and Dominion pays a strong 4.7% dividend yield. Wall Street analysts have the stock pegged for a 23% earnings growth next year, which implies the valuation might be cheap. And Dominion’s dividend yield is about three times the average yield on the S&P to boot.”

NextEra Energy (NEE) could be a safe play. “As a primary software issuer focusing on renewable energy, NextEra doesn’t rely upon overseas imports,” Francis said. “People will continually want electricity, making this a solid alternative no matter price lists.”

Auto stocks. Select global auto markets may be safe, too. Automakers who don’t manufacture in North America will see some upside. “That includes Chinese auto manufacturers who are increasingly exporting vehicles to other countries,” said Tony Pelli, practice director at BSI Americas in London, UK.

One prison stock. Private prisons seem to be favored by the Trump administration, as they fit the “law and order” vibe from 1600 Pennsylvania Avenue and are cheaper to work with than public prisons.

“Right now, the best stock to invest in that appears to be immune to tariffs is GEO Group (GEO),” said Alejandro Zambrano, chief market strategist at the online trading services provider ThinkMarkets. “The private prison company draws most of its revenue from the USA, and Trump’s deportation plans have not faced criticism internally or externally. It’s also a play we have been bullish on since before the election.”

Keep Your Eyes on the Ball – and Not On Tariffs

No doubt, tariffs are shaking things up on Wall Street; however, that doesn’t mean investors are helpless.

“By specializing in industries which are much less uncovered to tariff change wars—like technology, utilities, and healthcare—you may decrease hazard and preserve your portfolio steady,” Francis noted.

Trade guidelines might also change, but that’s okay, too. “Keep your eye on long-time period growth, diversify wisely, and don’t permit short-time period headlines dictate your decisions,” Francis advised.

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