Trump tariff shock again. We asked a professional about the “investment strategy” to win this new “trade war”
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- With the U.S. Supreme Court annuling tariffs by President Trump, the U.S. trade war has entered a new chapter.
- President Trump raised global tariffs to 15% last weekend, creating new uncertainty.
- Even so, investors should continue to pay attention to AI and strong sectors, market experts told Business Insider.
President Donald Trump’s trade war has entered a new phase of chaos, increasing uncertainty among investors.
The U.S. Supreme Court’s decision to invalidate most of President Trump’s tariffs has caused the market to show new volatile movements. This seems to mark the beginning of a new chapter of turmoil in trade disputes.
After the announcement of the tariff ruling on the 20th (US time), the US stock market rose temporarily. This is despite President Trump’s threat to impose a new 10% tariff on the whole world. However, the index fell sharply on the 23rd of the week. This is because President Trump made an additional announcement when the global tariff was further raised to 15%, and traders reacted to it.
Uncertainty over tariffs has long lingered in the market, especially how the battle over tariff refunds will be resolved. Therefore, it is unclear how the new tariff policy will develop, according to B. Riley Wealth Management (B. Art Hogan, chief market strategist at Riley Wealth Management, points out.
“I don’t think the Supreme Court’s decision and the rapid shift to Plan B have significantly dispelled the uncertainty surrounding tariffs,” Hogan told Business Insider. “It’s still a headwind.”
As the trade war enters a new phase, here are the positions recommended by market professionals for investors.
1. Maintain a focus on AI
The topic of tariffs is a major diverter from the market’s overwhelming interest in AI, said Peter Berezin, chief market strategist at BCA Research.
“I think the tariff issue has become a supporting role at the moment,” Berezin said. “For the market right now, AI is the main player.”
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It is unlikely that President Trump will raise tariffs more than announced on the 21st, Berezin said. The president also appears to be focused on promoting policies for low-income people ahead of the midterm elections.
In addition, President Trump is aware that tariffs cause inflation and is likely trying to avoid them, Berezin said. Berezin noted that members of the president’s team are downplaying the price increase caused by tariffs, but are trying to avoid it. The basis for this was a recent Financial Times report that President Trump plans to partially eliminate tariffs on steel and aluminum products, which the White House later denied.
2. Focus on underperforming sectors
Hogan believes that the tariff ruling will not change the current state of the market. Even if President Trump imposes global tariffs of as much as 15%, he said he does not think the new US trade policy will significantly change the investment environment from before.
Some countries, such as China and Brazil, faced much larger tariffs before the U.S. Supreme Court’s ruling, making them “winners” under the new tariff regime. However, from a sectoral perspective, the investment outlook has not changed, Berezin said.
Hogan advised investors to focus on sectors that have been underperforming the overall market for several years but have been performing well recently. This includes materials, industrials, and energy stocks. These sectors are the highest-performing sectors in the S&P 500 entering 2026.
The S&P 500’s best-performing sector year-to-date
- Energy: +22%
- Material: +16%
- Industrial stocks: +14%
- Daily necessities: +13%
- Utility: +8%
3. Consider precious metals and commodities
Precious metals and commodities could also benefit from new trade tensions, said David Morrison, senior market strategist at Trade Nation. When investors experience “market stress due to tariffs,” Morrison told Business Insider that they will rush to real assets and other safe-haven assets.
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Despite the historic selling pressure in late January, precious metals and commodities have recorded significant gains so far this year.
Year-to-date performance
- Gold: +20%
- Silver: +22%
- Brent Crude Oil: +18%
- Vanguard Commodity Strategy Fund: +9%
4. Don’t chase the backlash from consumer importers
Hogan points out that the stock prices of consumer companies, which are major importers of foreign products such as furniture and apparel retail, rose temporarily on the 20th.
If the U.S. returns the tariffs, some investors may be optimistic about the effectiveness of the corporate stimulus package. However, it is unclear whether the return will take place, and if it does, the government is likely to prolong the process, Hogan said.
Commenting on the recent recovery in the consumer sector, he added, “We don’t know how robust this measure will be as the lawsuit over government repayment continues.”
LPL Financial has no intention of chasing the rise in the stock prices of import-focused consumer retailers, the company’s chief stock strategist, Jeff Buchbinder, also pointed out.
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