There’s a particular tension that ripples through markets when growth cools but costs don’t, like a car trying to coast with the parking brake still on. The U.S. global trade standoff, especially with China, has helped shift that tension from speculation to reality.
Since January 2025, average U.S. tariffs on all imports have climbed from a historic 2.5% to roughly 15.8% as of June, levels unseen in over a century. China has matched move for move: its retaliatory levies on U.S. goods peaked at 125%, then eased to 10% in a fragile 90‑day Geneva truce struck May 12. Yet beneath that headline reduction lies a layered tariff regime: baseline 10% general duties, 20% “fentanyl” tariffs, 25% Section 301 penalties, meaning effective rates remain at 55% on Chinese-made goods. And there’s little certainty: in July, the White House signaled that baseline rates could swell to 15–50%.
The economic backdrop is no mere backdrop; it’s a storm front. Yale researchers estimate these 2025 tariffs alone shave 0.7 percentage points off U.S. GDP and push consumer prices up by ~1.7% in the short run, burdening households to the tune of $2,800 apiece. Invesco, echoing global strategists, warns these distortions elevate recession risks daily and inject serious volatility into risk assets. Meanwhile, analysts at ICG predict U.S. growth languishing near zero this year, perhaps even flirting with recession, but note that most developed economies might dodge outright contraction.
Markets, ever the mood ring, have responded unpredictably. The S&P 500 recently hit fresh highs, fueled by a blend of AI optimism, momentum buying, receding fears of all‑out trade escalation, and whispers that President Trump may retreat – again – from tariff brinkmanship. But beneath the rally’s glow flicker warning lights: Goldman Sachs is sounding a correction alarm, pointing to frothy sentiment, aggressive retail inflows, and signs of job‑market fatigue.
Corporate earnings offer a mixed tale. Industrial names like RTX are flagging, citing $125 million in tariff cost hits and cutting profit forecasts even amid solid demand. By contrast, 3M recently trimmed its exposure estimate and raised its forward guidance on the back of tariff relief to just $0.10/share, boosting investor confidence. Even Tesla warned of a “rough patch”, but blamed fading EV incentives and tariffs as much as flagging demand.
Put it all together: we’ve got stalled growth, sticky inflation, volatile markets, sharply elevated tariffs, and a corporate landscape that’s slicing into two camps—those exposed to global input costs and those unburdened by cross-border trade. It’s the perfect inferno for defensive, trade‑insulated names.
With that backdrop, let’s head to the list of best trade-war-resistant stocks to buy.
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Our Methodology
For our list, we narrowed down to stocks in the consumer staples industry that had pricing power, margin durability, strong brand moat and inelastic demand, and whose supply chains had lower dependence on China. From these, we selected the ones with the highest number of hedge funds holding stake in them as of Q1, 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Unilever PLC (NYSE:UL)
Number of Hedge Funds: 30
Unilever PLC (NYSE:UL) is one of the best trade-war resistant stocks to buy now. In July 2025, Unilever appointed three senior legal executives from within the company to lead the legal transition of its €8.6 billion ($9.3 billion) ice cream business as it prepares to spin the unit off under the name Magnum. The move shows Unilever’s preference for internal continuity during one of its most complex restructurings in years.
The new legal leadership includes Vanessa Vilar as Chief Legal Officer, Palmina Fava as Chief Integrity Officer and General Counsel for Ben & Jerry’s, and Natalia Cavaliere as General Counsel for the Americas. All three have spent years at Unilever and bring deep institutional knowledge to a unit that has faced legal and political scrutiny, particularly due to tensions between Unilever and Ben & Jerry’s board over governance and social responsibility issues.
The separation is part of a wider cost-saving and simplification effort that includes laying off 7,500 staff and narrowing focus to core segments: beauty, personal care, home care, and nutrition.
Known for global brands like Dove, Hellmann’s, and Surf, Unilever has remained resilient in volatile macro conditions, taking advantage of pricing power and deep operational infrastructure. The legal handling of the ice cream spin-off shows the company’s intent to manage internal tensions while moving decisively on its restructuring roadmap.
9. Kimberly-Clark Corporation (NASDAQ:KMB)
Number of Hedge Fund Holders: 45
Kimberly‑Clark Corporation (NASDAQ:KMB) is one of the best trade‑war resistant stocks to buy now. On July 25, 2025, JPMorgan analyst Andrea Teixeira maintained her Underweight rating on KMB while cutting the price target from $126 to $125, citing persistent trade‑tariff pressures and margin constraints that could limit near‑term upside potential.
That caution is well‑grounded. In April 2025, Kimberly‑Clark revised its annual profit outlook downward, warning of roughly $300 million in new costs this year stemming from U.S. import tariffs, which have pushed total cost of goods sold to be around $500 million higher than in 2024. Despite largely domestic manufacturing, supply chain complexities tied to trade tensions are weighing on profitability and organic growth.
Kimberly‑Clark is also finalizing a $3.5 billion sale of its global tissue business (excluding North America) to Brazilian pulp maker Suzano, as part of its broader refocusing efforts amid these macro pressures.
Kimberly‑Clark produces well-known brands like Kleenex, Huggies, Scott, and Kotex. While tariffs and escalating trade costs challenge margins, the company’s defensive household staples, brand equity, and recent restructuring moves provide a buffer.
8. Sysco Corporation (NYSE:SYY)
Number of Hedge Fund Holders: 50
Sysco (NYSE:SYY) is one of the best trade-war-resistant stocks to buy now. On July 18, 2025, Bank of America analyst Kendall Toscano reiterated a Strong Buy rating on the food distribution giant while raising the price target from $81 to $93, citing improving margins and resilient foodservice demand. The revised target implies a ~16% upside from current levels and reflects confidence in Sysco’s ability to maintain pricing power despite macro headwinds.
Sysco is seeing strength in both its U.S. and international segments, with cost efficiencies and strategic automation initiatives helping to offset input volatility. The analyst added that restaurant traffic, particularly in the casual dining space, has been holding up better than expected, helping to stabilize volumes.
Sysco’s scale and dominance in the foodservice distribution market make it uniquely positioned to weather geopolitical frictions. Sysco serves over 600,000 customer locations globally and operates 343 distribution facilities. Its diversified client base across restaurants, healthcare, education, and hospitality adds further resilience to its business.
Sysco Corporation (NYSE: SYY) is the world’s largest foodservice distributor, supplying ingredients and kitchen essentials to restaurants, hospitals, schools, and hotels. With unmatched scale and a vast logistics network, it’s a backbone of the global food supply chain.
7. Lamb Weston Holdings, Inc. (NYSE:LW)
Number of Hedge Fund Holders: 51
Lamb Weston Holdings, Inc. (NYSE:LW) is one of the best trade-war-resistant stocks on the market, but not without caveats. On July 9, 2025, Wells Fargo analyst Marc Torrente maintained an Overweight rating and lowered his price target from $70 to $65, citing short-term headwinds. Two weeks later, on July 24, he nudged that target back up to $66. Torrente described the company’s fundamentals as “intact and compelling,” despite near-term volume pressure and sluggish restaurant traffic.
His view essentially shows confidence in Lamb Weston’s global leadership in frozen potato products, especially frozen fries, where it controls roughly one-third of global supply. The company’s pricing power, strategic supply chain positioning, and exposure primarily to North America make it less vulnerable to tariff shocks than peers more entangled in China or broader global logistics webs.
Still, it’s not completely insulated. Roughly 30% of Lamb Weston’s sales come from international markets, including Asia. Fiscal 2025 guidance was soft, weighed down by weak North American volumes and one-time restructuring costs, but margins held up, suggesting that the business is cycling through its rough patch with minimal structural damage.
Lamb Weston’s facilities are closely integrated with farming regions, and its relationships with distributors and major foodservice brands remain tight. That operational focus, combined with demand stability for processed frozen foods, makes it a credible defensive play, especially in a market where volatility and geopolitics are back on the menu.
Lamb Weston (NYSE: LW) is a leading global supplier of frozen potato products, best known for producing nearly a third of the world’s frozen fries. With deep ties to foodservice chains and farming regions, it plays a quiet but critical role in the global food supply chain.
6. Monster Beverage Corporation (NASDAQ:MNST)
Number of Hedge Fund Holders: 54
Monster Beverage Corporation (NASDAQ:MNST) is one of the best trade-war-resistant stocks to buy now. On July 17, 2025, UBS raised its price target on Monster Beverage (NASDAQ: MNST) from $63 to $64 while maintaining a Neutral rating. The modest upward revision comes after Monster reported a sharp sales rebound in April, following a soft Q1.
Monster’s Q1 2025 results showed a 2.3% year-over-year decline in net sales, driven by weak demand in some international markets and underperformance in its alcoholic beverage segment. However, the company reported a 17% increase in April sales (currency-adjusted), helping restore investor confidence.
This rebound, along with Monster’s expanding international presence and ongoing production investments, are likely key reasons behind the price target increase. The company has recently expanded capacity with new facilities planned in Brazil and Ireland. The Brazil plant, expected to come online in 2026, will produce flavor concentrates and is intended to reduce tariff and transportation exposure in South America.
Gross margins improved year-over-year in Q1, rising from 54.1% to 56.5%, supported by pricing adjustments and favorable commodity costs. UBS analysts noted Monster’s ability to maintain margin strength despite global input volatility.
Monster Beverage Corporation (NASDAQ: MNST) is a leading energy drink producer, best known for its flagship Monster Energy line. It operates globally, competing primarily with Red Bull and PepsiCo in the high-margin functional beverage space.
5. Keurig Dr Pepper Inc. (NASDAQ:KDP)
Number of Hedge Fund Holders: 54
Keurig Dr Pepper Inc. (NASDAQ:KDP) is one of the best trade‑war resistant stocks to buy now. On July 17, 2025, JPMorgan’s Andrea Teixeira maintained an Overweight rating and nudged the price target down slightly from $39 to $38, reflecting confidence in KDP’s resilience amid volatility in coffee input costs and brewing competition.
That comes on the heels of strong Q2 2025 earnings reported July 24, where Keurig Dr Pepper posted revenue of $4.16 billion (+6.1%), slightly above expectations, and adjusted EPS of $0.49, in line with forecasts. U.S. Refreshment Beverages volume grew 5%, and sales rose 10.5%, driven by strong demand for brands like Dr Pepper, Snapple, and its majority-owned Ghost energy drinks. Ghost alone accounted for ~4 points of volume growth.
Meanwhile, management cautioned about looming 50% tariffs on Brazilian coffee beans starting August 1, 2025, as well as inflation from poor crop weather, which could pressure margins in its coffee segment through year-end, even as prices have already been raised earlier this year.
Keurig Dr Pepper, formed in 2018 via merger, encompasses iconic beverages like Dr Pepper, Canada Dry, Snapple, Keurig single‑serve coffee pods, and the fast‑growing Ghost energy brand.
4. PepsiCo, Inc. (NASDAQ:PEP)
Number of Hedge Fund Holders: 71
PepsiCo, Inc. (NASDAQ:PEP) is one of the best trade-war-resistant stocks to buy now. On July 18, 2025, JPMorgan’s Andrea Teixeira raised PepsiCo’s price target from $139 to $157, while maintaining a Neutral rating, signaling cautious optimism that cost pressures and softer volume trends may be easing.
That upgrade comes right after the company’s Q2 2025 earnings release (July 17), where PepsiCo posted revenue of $22.73 billion (+1%), topping expectations, and adjusted EPS of $2.12 beating the $2.03 consensus. The results were powered by strong international growth, a modest uptick in North America beverage volumes, and improving mix, even as snack volume lagged behind.
Despite ongoing tariff-related headwinds, notably in aluminum packaging and concentrate sourcing, and sluggish consumer demand in its Frito‑Lay North America segment, JPMorgan likely believes PepsiCo’s pricing power and the recovery trajectory justify the more bullish target. The hike reflects confidence that management’s productivity and revenue growth strategies are beginning to stabilize core margins and volume dynamics.
PepsiCo is a global food and beverage giant, known for brands like Pepsi, Lay’s, and Gatorade, operating in over 200 countries and territories.
3. The Coca-Cola Company (NYSE:KO)
Number of Hedge Fund Holders: 87
The Coca-Cola Company (NYSE:KO) is one of the best trade-war-resistant stocks to buy now. On July 23, 2025, JPMorgan’s Andrea Teixeira raised the price target on KO from $77 to $79 and reaffirmed an Overweight rating, citing the company’s pricing power and resilience amid macroeconomic pressure.
That outlook followed a solid second quarter: adjusted earnings per share came in at $0.87, beating estimates of $0.83, while comparable revenue rose 2.5% to $12.6 billion. Net revenue was up 1% to $12.5 billion. The company also announced it will launch a U.S. version of its cane sugar-sweetened Coca‑Cola this fall, expanding beyond the long-standing glass‑bottled “Mexican Coke” and responding to both consumer preference and tightening food regulations.
Coca‑Cola Zero Sugar continued to gain traction, with global volume up 14% year over year. Overall volume dipped around 1%, but higher prices and favorable product mix helped offset the decline.
Coca‑Cola is the global beverage giant behind iconic brands like Coca‑Cola, Sprite, Fanta, and Coca‑Cola Zero Sugar.
2. The Procter & Gamble Company (NYSE:PG)
Number of Hedge Funds: 88
The Procter & Gamble Company (NYSE:PG) is one of the best trade-war resistant stocks to buy now. But not every analyst is ready to double down. On July 25, JPMorgan’s Andrea Teixeira downgraded PG from Overweight to Neutral, cutting the price target from $178 to $170. The downgrade reflects weak category trends, limited margin upside, and lackluster revenue momentum. Teixeira noted that P&G’s valuation already prices in its long-term strengths, leaving little near-term upside.
This follows the company’s announcement of a major restructuring plan involving the elimination of roughly 7,000 white-collar roles, about 6% of its global workforce, over the next two fiscal years. The move is aimed at flattening management layers, consolidating brand categories, and investing in automation and digital infrastructure. While the plan is expected to enhance long-term efficiency, analysts don’t expect a near-term earnings boost, and the stock may remain rangebound until the benefits begin to materialize.
Procter & Gamble is a consumer goods giant whose portfolio spans household staples like Tide, Pampers, Gillette, and Oral-B. Its defensive business model and pricing power have historically made it a safe haven during periods of geopolitical and economic instability, including trade wars.
1. Johnson & Johnson (NYSE:JNJ)
Number of Hedge Fund Holders: 91
Johnson & Johnson (NYSE:JNJ) is one of the best trade‑war resistant stocks to buy now. On July 21, 2025, J&J submitted a New Drug Application to the U.S. FDA for icotrokinra, an oral peptide therapy targeting moderate to severe plaque psoriasis in patients aged 12 and older—signaling a strong late‑stage R&D pipeline with growth potential beyond consumer staples or medtech divisions.
On the analyst front, Guggenheim recently raised its price target from $164 to $167, while holding a Neutral rating in mid‑July 2025. The modest upgrade shows confidence in J&J’s strategic balance between innovation and defensive income streams .
Despite being broadly diversified across consumer health, pharmaceuticals, and medical devices, J&J is relatively insulated from trade‑war volatility. Its supply chains are diffuse, production is localized in multiple markets, and it sources materials from global partners across regions less exposed to high tariffs. That allows J&J to preserve margin power and delivery continuity across geopolitical shifts.
Johnson & Johnson is a global healthcare conglomerate spanning pharmaceuticals, medical devices, and consumer health products. Known for its scale and scientific depth, it operates in over 60 countries.
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