2 Tariff-Proof Stocks to Buy as Trump Threatens 70% Tariffs

Despite persistent trade policy uncertainty and aggressive tariff threats, Coca-Cola (KO) and Netflix (NFLX) are identified as resilient investment opportunities. Coca-Cola's extensive localized manufacturing and consumer staples positioning provide tariff insulation and stability, supported by a strong brand and consistent dividends. Netflix, as a subscription-based streaming service, is largely immune to import tariffs, demonstrating robust financial performance and significant growth potential in the evolving media landscape. Both companies offer relative insulation from trade-related market volatility, positioning them as attractive long-term holdings.

Analysis

Amid heightened equity market volatility stemming from aggressive trade tariff proposals, Coca-Cola (KO) and Netflix (NFLX) are positioned as resilient due to business models that are largely insulated from direct import duties. Coca-Cola's extensive localized manufacturing footprint, as affirmed by CEO James Quincey's statement that the vast majority of U.S.-consumed products are made domestically, mitigates tariff risks. This operational structure, combined with its status as a defensive consumer staple, has contributed to its outperformance relative to the broader market this year. The company's fundamental strengths are underscored by a durable brand moat, a diversified beverage portfolio, and a consistent dividend history, marked by 63 consecutive years of increased payouts and a current forward yield of 2.9% versus the S&P 500 average of 1.3%.

Netflix's resilience stems from its subscription-based digital service model, which is not subject to tariffs on physical goods. The company continues to exhibit strong financial momentum, posting 12.5% year-over-year revenue growth and 25.2% EPS growth in the first quarter, with projections for accelerating growth in Q2 at 15.4% for revenue and 44.1% for EPS. However, this growth narrative is accompanied by a significant valuation premium, with the stock trading at 52 times forward earnings, well above the communication services industry average of 19.9. This premium suggests high investor expectations and potential for volatility. The long-term growth case rests on its market leadership in the expanding streaming sector, with significant runway for growth in viewing time—as seen in the U.K. market—and the nascent potential of its advertising-supported tier.

Key Decisions for Investors

• Investors seeking to hedge against trade policy uncertainty should consider firms like Coca-Cola and Netflix, whose business models offer insulation from direct tariff impacts.
• For defensive and income-focused portfolios, Coca-Cola's combination of a localized supply chain, consumer staple status, and a superior 2.9% dividend yield presents a compelling vehicle for capital preservation and income generation during market turbulence.
• Growth investors should note Netflix's robust financial performance and strong guidance, but must be prepared for potential volatility given its elevated forward P/E of 52, which makes the stock susceptible to price corrections if it fails to meet high market expectations.
• Beyond near-term tariff resilience, both companies are presented as long-term holdings, meriting consideration based on their fundamental strengths: Coca-Cola's brand power and Netflix's dominant position in the growing global streaming market.