President Trump just said tariffs on Mexico and Canada will go into effect on March 4. He added that tariffs on China will see a 10% hike then, too.
In addition, the President threatened to slap Europe with a 25% tariff.
In a Truth Social post, he said, “Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China. More than 100,000 people died last year due to the distribution of these dangerous and highly addictive POISONS. Millions of people have died over the last two decades.”
“The families of the victims are devastated and, in many instances, virtually destroyed. We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled. China will likewise be charged an additional 10% Tariff on that date. The April Second Reciprocal Tariff date will remain in full force and effect. Thank you for your attention to this matter.”
That being said, investors may want to protect their portfolios with safe high-yielding stocks and ETFs, as well as safer consumer and utility ETFs, such as:
SPDR Portfolio S&P 500 High Dividend ETF (SYM: SPYD)
With a yield of 4.37% and an expense ratio of just 0.07%, the SPYD ETF tracks the total return performance of the S&P 500 High Dividend Index. It also seeks to provide a high level of dividend income and the opportunity for appreciation.
Some of its 80 holdings include stocks, such as Philip Morris International, AbbVie, Hasbro, AT&T, CVS Health, Kimberly Clark, and Consolidated Edison to name a few. About 22.73% of the SPDY ETF portfolio is allocated to real estate. Nearly 17% is allocated to utility stocks. About 15.4% is allocated to consumer staples, with about 14.4% in financial stocks.
Consumer Staples Select Sector SPDR ETF (SYM: XLP)
With economic uncertainty, market volatility, or inflationary pressures, the consumer staples sector is often considered a safe investment. The sector sells essential goods with historically strong demand. With an expense ratio of 0.08%, the XLP ETF has 38 holdings, including Costco, Walmart, Coca-Cola, Procter & Gamble, and Target to name a few.
Utilities Select Sector SPDR ETF (SYM: XLU)
Utility stocks also get a safe-haven tag. Utilities provide essential services such as electricity, water, and natural gas, which people need regardless of economic conditions. With an expense ratio of 0.08%, the XLU ETF has 31 holdings, including NextEra Energy, The Southern Company, Duke Energy, Constellation Energy, Vistra Corp. and Sempra to name a few.
