Tariffs just landed—and they're shaking up the market. After Trump dropped a 10% blanket tariff on all imports, the overall market tanked. But if you're an investor thinking long term, this may be the perfect moment to get tactical. Analysts from Bank of America and Morgan Stanley are flagging key risks: while reshoring and reduced trade deficits may eventually show up in the numbers, we're likely in for years of higher costs for U.S. businesses. That means more pressure on margins, consumer demand, and growth—exactly the setup where defensive names tend to shine.
Morgan Stanley is pointing investors toward companies that don't flinch under pressure—think consumer staples and healthcare with real pricing power. Coca-Cola (KO, Financial), Philip Morris (PM, Financial), Monster Beverage (MNST, Financial), and Keurig Dr Pepper (KDP, Financial) all made their Overweight list, thanks to strong brands, emerging market tailwinds, and consistent volume growth. Over in healthcare, names like Becton Dickinson (BDX, Financial) and Intuitive Surgical (ISRG, Financial) are also showing their staying power. These companies have quietly raised prices for years without losing customers—a massive edge when tariffs start squeezing the supply chain.
Don't overlook the retail outliers either. TJX (TJX, Financial), parent of T.J. Maxx, actually ticked up as the market sank. Why? It's a master of reading the consumer and adjusting fast—exactly what works when shoppers trade down but keep buying. History backs this up: during past downturns, consumer staples and utilities outperformed while the broader market lagged. If tariffs are the new normal, investors may want to stop chasing what's sexy—and start owning what survives.
