Potential Winners of Trump Trade War: Netflix and 6 Other Companies

Tariffs have been a hot topic lately, with many discussions focusing on how they could impact consumers and their spending. However, some companies might actually benefit from a trade war, depending on whether the tariffs are a short-term measure or a long-lasting policy shift. Jack Buffington, a supply chain management expert at the University of Denver, suggests that companies may not need to make immediate changes due to tariffs unless there’s a smooth industry transition in place. Looking ahead, certain sectors like lumber, energy, automotive, and high-end electronics could see a boost in the U.S. economy, leading to increased investment and manufacturing growth.

Here are some businesses that could thrive in a prolonged trade war:

– **Cleveland-Cliffs (CLF):** As one of the largest steel producers in the U.S., Cleveland-Cliffs stands to benefit from country-specific tariffs. CEO Lourenco Goncalves expressed optimism about further tariff actions that could level the playing field and support American manufacturing.

– **TJ Maxx (TJX):** This popular discount retailer is well-positioned to appeal to price-conscious consumers. Since TJ Maxx sources its clothes domestically from close-outs and overstocks, tariffs on overseas-made clothing won’t significantly impact its business model.

– **CSX and J.B. Hunt (JBHT):** Companies like CSX and J.B. Hunt, which provide freight services, are likely to experience an increase in domestic transportation demand as more companies opt to ramp up local production to avoid tariffs.

– **Etsy (ETSY):** Homegrown collectibles and crafts from Etsy could become more appealing to consumers looking to avoid tariffs on Chinese goods. The CEO highlighted Etsy’s lower dependency on Chinese products as a potential advantage in the current trade environment.

– **Nuuly (URBN):** This clothing rental service, owned by Urban Outfitters, may see a surge in popularity as consumers seek alternatives to buying costly items amidst tariff increases. Nuuly contributed to record profits for its parent brand last year.

– **Netflix (NFLX):** While dining out could become pricier due to tariffs affecting restaurants, staying in and streaming Netflix remains a tariff-free entertainment option for consumers.

As the trade landscape continues to evolve, these businesses are poised to navigate the challenges and potentially benefit from the changing economic climate.