In a market rattled by uncertainty, identifying companies that can weather the storm of incoming tariffs could be your portfolio’s saving grace. As the Trump administration’s import levies on goods from Canada, China, and Mexico take effect today, savvy investors are already repositioning their assets to capitalize on businesses with built-in protection against these trade headwinds.
While Commerce Secretary Howard Lutnick has hinted that duties on Mexican and Canadian products might be lower than the initially announced 25%, the uncertainty has already taken its toll on the broader market. Remember February’s 1% decline in the S&P 500? That was just the appetizer.
What’s crucial to understand is that these tariffs won’t impact all companies equally. The key differentiator will be companies with strong pricing power and dominant market share – businesses that can pass increased costs to consumers without losing their competitive edge.
Let’s examine some standout companies positioned to thrive despite the shifting trade landscape:
Ulta Beauty (ULTA)
Ulta’s unique position in the beauty retail space gives it remarkable insulation from tariff pressures. Despite pulling back more than 16% in 2025 so far, the company maintains significant advantages:
- Diverse supplier relationships across domestic and international markets
- Strong brand loyalty that supports price flexibility
- Experiential retail model that can’t be easily replicated by online competitors
The beauty industry continues to demonstrate remarkable resilience during economic uncertainties. Consumers may cut back on big-ticket purchases, but lipsticks, skincare, and personal care products remain relatively tariff-resistant.
While Ulta’s share price has retreated, this may represent an opportunity. Morgan Stanley analyst Simeon Gutman highlighted Ulta’s durability, noting: “ULTA remains a strong, durable business in a dynamic and attractive category. As the Beauty industry continues to grow, ULTA’s top-line should follow.”
Levi Strauss & Co (LEVI)
The iconic denim maker has positioned itself remarkably well despite potential supply chain disruptions:
- Diversified manufacturing footprint across multiple continents
- Strong brand loyalty allowing for strategic price adjustments
- Digital transformation initiatives reducing dependency on traditional import channels
While Levi’s did issue somewhat conservative guidance due to anticipated currency headwinds from a strengthening dollar, the company’s fundamentals remain solid. Their Q4 results exceeded expectations, and their pricing power in the premium denim category gives them room to absorb some tariff-related cost increases.
The advantage for Levi’s comes from its brand strength – consumers have demonstrated willingness to pay premium prices for authentic Levi’s products, providing a buffer against cost pressures. The company has ticked up over 3% in 2025 already.
Dollar General (DG)
In uncertain economic times, discount retailers often outperform the broader market, and Dollar General stands out for several reasons:
- Predominantly U.S.-based customer segment less impacted by import price fluctuations
- Strategic relationship with domestic suppliers
- Value proposition that becomes more attractive as consumers become price-sensitive
Dollar General’s business model is particularly well-suited for the current environment. As households feel the pinch of broadly higher prices, the company’s value offerings become increasingly attractive to cost-conscious consumers.
The company has also been aggressively expanding its store footprint, particularly in underserved rural markets where competition is limited. This geographic strategy provides a competitive moat that larger retailers struggle to penetrate.
Planet Fitness (PLNT)
The gym chain demonstrates remarkable tariff resilience through:
- Service-based business model with limited exposure to imported goods
- Recurring membership revenue streams
- Value positioning attracting cost-conscious consumers
Planet Fitness offers an interesting counter-cyclical play. As consumers become more budget-conscious, expensive boutique fitness options often see membership declines, while Planet Fitness’s affordable $10/month model gains appeal.
The company’s asset-light franchise model also provides insulation from direct capital expenditure increases that might result from equipment price hikes due to tariffs.
International Business Machines (IBM)
While tech companies face varying degrees of tariff exposure, IBM stands out for its adaptive positioning:
- Shift toward high-margin software and services
- Global operational footprint allowing for strategic supply chain adjustments
- Enterprise customer base with long-term contracts providing revenue stability
IBM’s transformation from hardware-dependent business to cloud and AI solutions provider reduces its vulnerability to tariffs on physical goods. The company’s strategic pivot toward higher-margin services provides natural insulation against import cost fluctuations.
With shares up 1.51% recently against market weakness, investors appear to recognize IBM’s relative strength in the current trade environment.
What This Means For Your Portfolio
The market’s reaction to tariffs will likely be more rotational than broadly negative. Rather than triggering a significant market correction, these trade measures will separate winners from losers based on their ability to navigate the new cost environment.
For your portfolio, this suggests three key strategies:
- Focus on companies with pricing power that can pass increased costs to consumers
- Look for businesses with dominant market share that competitors can’t easily erode
- Consider domestic-focused operations with limited international supply chain exposure
While no company is completely immune to broader economic forces, these tariff-resistant stocks offer a potential safe haven as markets digest the impact of the new trade policies.
The coming weeks will provide greater clarity on the actual impact of these tariffs, but positioning your portfolio now with companies that have demonstrated resilience gives you a head start in navigating these uncertain waters.
