URGENT: Trump Tariffs Coming Soon (How to Invest Now)

Guys, on this quick video, I want to talk to the investors out there, right? You need to get ready for Trump's tariffs and be prepared on how you can take advantage of these opportunities that are upcoming if these tariffs actually materialize. Look, I want you to understand as an investor that just because something bad is happening in the economy, it doesn't mean it has to be bad for you, right? There's opportunities that may arise based on these tariffs, and I want you to be prepared for them. There was just a story that came out today that is showing that these tariffs may be sort of tampering down just a little bit, right? There was a lot of rhetoric about what may happen April 2nd at the start of these tariffs and when these tariffs really go into effect, but there were some developments that I think you need to pay attention to as an investor, as a consumer, right, that happened today because, hey, I don't want you to waste these opportunities as an investor. So guys, this article was from yesterday on CBS, and I always tell you guys to understand where you're getting your source from. This is CBS, so pay attention in terms of how it's worded, right? Trump's tariffs on April 2nd will be narrower than previously threatened. Now, the article goes on to say, I'm not going to read everything for you verbatim, right, word for word, but it says Trump's plan for reciprocal tariffs to start on April 2nd is expected to be more targeted and more narrower than what the president has vowed in the past, but the plan is still under discussion. The fresh round of duties or taxes, however, would still mark a significant escalation for the U.S. and its trading partners. Now, back in February, Trump ordered federal agencies to look into virtually every U.S. trading partner and evaluate what reciprocal tariff rate that they may want to, that America may want to put on them, right? Then it goes on to say that Trump's officials have been signaling a more conciliatory tone in recent interviews, right? One of the things we see for markets is they're expecting these really large tariffs on every single country, said Kevin Hassett, who's Trump's National Economic Council director. He said, I think markets need to change their expectations because it's not everybody that cheats us on trade, it's just a few countries and those countries are going to be seeing some tariffs. Now, this article goes on to say that U.S. stocks surged on Monday on the news of narrower tariff plans, right? So the Dow Jones Industrial Average climbed up by nearly 500 points or 1.2% and the S&P 500 jumped 1.5%, right? And the tech-heavy Nasdaq, the Nasdaq 100, it increased by more than 2% on Monday because the market, as the stock market understands tariffs, the stock market says tariffs are bad. And so when it comes to tariffs, markets usually go down with any talk of tariffs, right? Especially large-scale talks of large-scale tariffs, it sends the market down because it signals to the stock market uncertainty, right? Now, when the talk of tariffs kind of goes away or subsides a little bit, the stock market tends to see that as good news and then stocks tend to rally, just like they rallied on Monday. The article goes on to say that in recent months, Trump's tariffs have roiled markets, stoked recession concerns and talks, and heightened worries about inflation. Because as you guys know, you have to know this as an investor, as a consumer, tariffs equals higher prices. Tariffs equal the rate at which prices go up to increase, which is inflation, right? So the market gets nervous when it comes to tariffs talk, when it comes to talk about tariffs. It says in short order, Trump has paused or revised some tariffs, casting doubt over his plans and adding to the uncertainty. It says the Trump administration earlier this month slapped 25% tariffs on goods from Mexico and Canada, though the White House soon imposed a one-month delay for some of those tariffs. And it says tariffs that were imposed on steel and aluminum back on March 12th, just a couple of weeks ago, triggered retaliatory tariffs from Canada and the EU, the European Union, adding to countermeasures already initiated by China. So these trade wars kind of started already, have began, and we as investors got to figure out how are we going to react to them positively so that we can make some money? These are opportunities as investors, right? It says economists widely expect tariffs to increase inflation since exporters typically pass along a share of the tax to us as consumers in the form of price hikes and increases, right? And it says Federal Reserve Chair Jerome Powell last week said Trump's tariffs are partly to blame for price increases. So the market has seen all of this uncertainty here recently. The deal for us is how do we react? How do we prepare right now as consumers? Well, let me say this first. I think one of the main goals of these tariffs is to even out the balance of trade, but also at the same time, bring back manufacturing domestically here in America. Then there was another piece of big news that came out talking about Hyundai. It says Hyundai announces a $20 billion investment in the US. It says South Korea-based Hyundai and President Donald Trump announced a $20 billion investment in the US onshoring on Monday, which includes a $5 billion steel plant in the state of Louisiana. The $5.8 billion Louisiana facility will be the car manufacturer's first steel manufacturing facility in the US and will produce more than 2.7 million metric tons of steel a year and create more than 1,400 jobs. I've seen some other articles that said 1,500 jobs. It said it will supply steel to auto plants in Alabama and Georgia, Trump said in his remarks. Now, when you look at some of these investments that some of these companies and countries are pledging to America over the last month or so, I think this is part of the plan for tariffs. Now, will it work long-term? Perhaps, maybe, maybe not. It just depends, right? Guys, let me know in the comments below if you think tariffs are going to have a positive effect on the American economy ultimately, or is it going to remain a negative effect on America? Or do you think it'll be negative in the beginning because prices will go up, but ultimately it may have a positive effect on the American economy? Because there's two sides, there's pros and cons to this whole tariff issue. And it sounds like to me, guys, with the threat of tariffs sort of narrowing in the last week or so, it sounds like tariffs is really more of a threat than an actual it's going to happen. And President Trump is using it as more of a negotiating strategy and some leverage. But when you look at what Hyundai did in terms of announcing a $20 billion investment, guys, this is one of many companies and countries. Here's a list right here, guys, that I pulled off of streetinsider.com that shows a list of companies and countries investing in the U.S. based on in the last couple of months, making a commitment to actually build and pour money into the American economy. And the list includes countries and companies like the UAE, United Arab Emirates, they pledged 1.4 trillion, Saudi Arabia pledged 600 billion, the company pledged 500 billion, NVIDIA, 100 billion, SoftBank, OpenAI and Oracle, they all got together in a group about a month ago and said, we're going to pledge 100 billion, did a big press conference. Then, of course, there's Taiwan Semi, Johnson & Johnson, there's Eli Lilly, ticker symbol LLY. They said, we're going to do 27 billion, the CMACGM group, Merck, Geo Aerospace even pledged a billion. And then today, Hyundai announces a $20 billion investment in the U.S., right, a press conference. So more than a couple of trillion dollars total. There's another long list of other ones that have pledged to build in America or at least invest in American infrastructure. And I think that's part of what these tariffs are meant to do long term, although there'll be some short term pain. Now, look, I'm not saying it's going to work. I'm not saying it's not going to work. I'm asking you, what do you think in the long term? Drop that comment below. All I know is that anytime you talk about trade wars and you're talking about tariffs and retaliatory tariffs, there's going to be some increases in prices. That's automatic. The question is, what do we do as consumers and investors right now with this threat of tariffs, right? Well, the first thing we don't do is we don't panic. We don't get upset. We don't go crazy. We don't get mad. Don't get angry. We leave the emotion out of it, right? But how do we prepare? If tariffs increase, it's going to lead to higher inflation, higher costs for imported goods, supply chain disruptions, all types of things that are going to put pressure on inflation. You're going to see prices go up. You may see stocks go down, right? But as a regular investor, we can take advantage of just being strategic to not only protect our portfolio, but also capitalize on these things. How do we prepare? A few ways. Let me just give you a few ways and things that we can do. First is we can make sure we're diversified, perhaps into domestic focus type stocks, right? Not necessarily international, but maybe you bring in some of that focus into what's happening here in America. Higher tariffs make imports more expensive, right? So the companies that import these goods from these countries that have higher tariffs, these companies have to pay more to ship and bring in those imports to manufacture or make whatever they got to make, which means that companies that actually produce those things here in America domestically, they could benefit. They could actually see some increase in revenue, right? Some increase in free cash flow, some increase in NOI, right? Net operating, whatever it could be. They could see some increase. So we got to be thinking as investors, okay, what are some sectors that we got to be considering and thinking about investing in if these tariffs actually take place? Think about your industrial sectors, right? US-based manufacturers are going to benefit from reduced or less foreign competition, right? Because the foreign stuff coming in, being imported, is going to go up in price. People that make those materials right here, companies, these industrial sector type companies that make those materials here, they could benefit by producing and making steel and aluminum right here in America, right? So you want to look for those type of companies. Another sector that might benefit in terms of investing is consumer staples. US-based food and beverage companies could very well benefit from imports being higher, right? And here they come in as an alternative and they're cheaper. They're less expensive. You don't have to pay that high tariff if you just buy it down at our company down in Texas or you buy it from our company out in California or up in Maine, right? So domestically produced consumer staple type companies, food and beverage, right? That's just another sector that could benefit. As an investor, this is how we start to prepare now. When we see things go wrong and people panicking and markets panicking, we look for opportunities. Now, another thing is maybe you can focus on in terms of your investing on companies that have strong, what they call pricing power. So companies that can pass higher cost off to consumers without losing any of their market share. These companies are companies that sort of steel perform well in an inflationary type of period or an inflationary type of environment. So an example that would be like, let's say like Procter & Gamble, right? Procter & Gamble owns lots of different brands. I think they own like Charmin, the toilet tissue, toilet paper company. I think they own like Oral-B. You see on your toothbrushes, you see Oral-B or you see Pampers or something. Procter & Gamble owns all that type of stuff, right? These are those big brands that you see out there. A lot of times Procter & Gamble owns those, right? Or another company that has pretty strong pricing power would be like Apple, right? Even when things go bad, Apple still does pretty well because it sells that thing that's in our pocket that we all use for everything, a cell phone, right? So some companies can pass off cost to consumers without losing their market share, right? You want to look for those type of companies as an investor so you can prepare for tariffs. And then another sector or one to consider opportunity in case these tariffs really take off is perhaps energy, right? Now, I'm not an energy and utilities guy, but I know for a fact that energy and utility companies, they can pass off cost to consumers very, very easy. I mean, have you ever opened up your electricity bill and when you really went through everything on there, there's like $2 here, $5 there, $7 there. You don't know where it came from. Look, 99% of Americans are not looking at their electric bill that closely. And so those companies, they very easily passed off cost to consumers and 99 times out of 100, consumers don't even know. But also energy companies because energy companies, when you see like disruptions in global supply chains, they're not really affected very much. So maybe that's a sector that as an investor, you look at investing in, right? And then of course, you can always kind of hedge or be a little defensive as an investor and have a bunch of dividend stocks laying around, right? Companies that pay a dividend on a regular basis and have paid those dividends for years and years and years. Dividend paying stocks provide you a steady income if you have enough of them, right? And they tend to be value stocks that hold their value no matter what's going on around us. Periods of instability value companies like an AT&T, they're going to still pay their dividend and still be a good solid company no matter what's happening in the economy around us. Those telecom companies, those healthcare companies that pay dividends, these are companies that are going to be solid no matter what's going on. Those are usually those value stocks, right? So what I'm trying to do here, guys, is I'm trying to give you a way to defend yourself against if these tariffs really take off, what you can do. If these tariffs really take off, how can you as a regular investor prepare for potential higher prices, right? And another thing you can do, you know that technology is very, very volatile. Maybe you can move out of technology. Now, I'm just throwing that out at you. Maybe you can move out of technology because technology is very, very susceptible to supply chain interruptions, right? Technology can be very, very susceptible to some of the outside factors that affect the economy. Retailers rely heavily on imports. Automakers rely heavily on imports. Technology typically relies pretty heavily on imports. So what happens, guys, is when imports go up, those stocks may suffer. So my thing is this, guys, we just have to prepare ourselves as investors, as not just consumers, but as investors to not look at the market and say, oh my gosh, everything's horrible, everything. But how can we take advantage and see some opportunity in this thing? And this is how you get ready for Trump's tariffs and you be prepared, is that you take a look at your stock portfolio and you take a look at what could win and what could benefit from these tariffs. What type of sectors in the markets could take advantage during these times? Just a different way to look at the stock market, guys, if you want to be, if you want to win in the stock market. And I always consider a win in the stock market if I can beat the S&P 500. If I can be beating the S&P 500 in a six-month span or a one-year span, I'm feeling pretty good about it, right? When you look at these companies and countries that are deciding to invest in America, these companies are doing what we should be doing as investors. These companies and countries, they are trying to take advantage of opportunities that exist out there. Instead of looking at the stock market as, woe is me, everything's down, this is horrible. Let's look at this thing and say, okay, where can we actually make some moves to strengthen our portfolio? How do we not waste this opportunity or waste this issue or problem when everybody else is down in the market and upset and the market shows some volatility and there's fear and uncertainty amongst investors, regular investors, right? I'm not talking about necessarily the big institutional investors. I'm talking about me and you, regular investors. How do we begin to turn that thing around and make it work in our favor? So Trump's tariffs have sort of narrowed in terms of what they may do. And I think that's because these tariffs were really a bargaining tool, right? They were more of negotiating tools to get countries and companies to come to the table and say, hey, look, we're going to invest in the infrastructure and domestically in America and create jobs, et cetera, right? I think that's part of what it was, not only just to balance out the fair trade, but to say, hey, look, look what we're doing. We're growing, right? There's going to be some pain up front with increased prices, perhaps higher inflation. Guess what? Long-term, it may be okay. We'll see. Guys, if you got any value at all out of this quick video, do me a favor and smash that like button. Just a quick update to keep you guys up on what's going on with these tariffs. April 2nd, keep your ears and your eyes open for April 2nd. It could be a pretty big day. But even before that, as an investor, be paying attention to what's going on. We got an opportunity here, guys. Let's not waste the opportunity. Be prepared and get ready for Trump's tariffs. They may come in a smaller way. They may come in a bigger way. But one way or the other, we have to be ready to take advantage of the opportunities that present themselves if and when they come, no matter how big or small they are. If you got value from this video, guys, smash that like button for me. Drop me a comment. Let me know your thoughts. Hey, as I always say, the best person who's going to take care of the old you is the young you. Guys, take good care of yourself and take care of other people. Until the next video, peace.