The Hidden Winners of a U.S.-China Trade War: 3 Stocks to Watch

best stocks during trade wars” and “China tariff-proof investments.

Defense Sector: Companies benefiting from military tensions (e.g., Lockheed Martin).
Commodity Traders: Firms profiting from supply chain shifts (e.g., agricultural exporters).
Tech Resilients: Semiconductor or AI stocks less dependent on China.
Risks to Consider: Overvaluation, policy changes.
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The Hidden Winners of a U.S.-China Trade War: 3 Stocks to Watch

By [Your Name] | Pricip.com | [Date]

As U.S.-China trade tensions escalate, investors are bracing for more market turbulence. With new tariffs, export bans, and retaliatory measures, many stocks are at risk—but some companies stand to benefit from the chaos.

In this article, we’ll uncover three stocks that could thrive in a U.S.-China trade war, offering investors a hedge against volatility and a shot at outsized gains.

Why Some Stocks Win in a Trade War

Trade wars disrupt supply chains, increase costs, and spark inflation—but they also create new opportunities. Companies that:
Reduce reliance on Chinese manufacturing
Benefit from reshoring (U.S. production returning home)
Supply critical defense or infrastructure needs
…often outperform during economic conflicts.

Now, let’s dive into the top three stocks to watch.

1. Lockheed Martin (LMT) – The Defense Giant

Why It Wins:

Geopolitical tensions boost military spending (U.S. and allies).
China’s aggression accelerates demand for advanced weapons (F-35 jets, missile systems).
Strong government contracts provide revenue stability.

Recent Performance:

Up +18% YTD (as of April 2025) amid rising global conflicts.
Dividend yield: ~2.7% (a defensive play in volatile markets).

Risk to Watch:

Budget cuts could slow growth, but current trends favor defense stocks.

2. Deere & Company (DE) – The Agriculture Powerhouse

Why It Wins:

U.S. farmers benefit from China’s need for food imports (soybeans, corn).
Trade wars push America to dominate global agriculture exports.
Farm equipment demand stays strong even in downturns.

Recent Performance:

Stock up +12% in 2025 as crop prices rise.
Long-term play on food security trends.

Risk to Watch:

If China diversifies suppliers (Brazil, Argentina), demand could soften.

3. Taiwan Semiconductor (TSM) – The Chip King

Why It Wins:

U.S. pushes to cut reliance on Chinese semiconductors (CHIPS Act funding).
AI boom drives demand for advanced chips, and TSM is the world’s leader.
Trade restrictions hurt Chinese rivals (like SMIC), helping TSM.

Recent Performance:

Rebounding after 2024 slump, up +25% in Q1 2025.
Long-term growth as tech decoupling accelerates.

Risk to Watch:

Taiwan geopolitical risks remain a wild card.

Final Thoughts: Trade Wars Create Opportunities

While most investors fear trade wars, smart money looks for hidden winners. Defense stocks (LMT), agriculture leaders (DE), and semiconductor giants (TSM) could thrive as U.S.-China tensions intensify.

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