- Donald Trump’s return to the White House has pre-emptively bolstered “Made in the USA” stocks, while Chinese stocks collapsed in anticipation of more import tariffs to come.
- The Trump administration will seek to bolster the U.S. supply chain for steel, semiconductors, and automobiles.
- Critics argue that imposing more tariffs will end up costing U.S. consumers more for products, driving up inflation.
The return of the Trump administration to the White House in 2025 has caused many U.S. stocks to surge pre-emptively on positive sentiment, while Chinese stocks collapsed on fears of more trade tensions and tariffs to come. During his reelection campaign, Trump suggested imposing a 60% tariff on goods produced in China and 20% on everything else. Trump even threatened farming machinery giant Deere & Company (NYSE:DE) with 200% tariffs on anything they produce in Mexico to force them to keep its production in the U.S.
As the markets try to anticipate his actions based on his previous administration’s policies, stocks that fit certain themes are already seeing the early money flow. The core theme of the Trump administration has been and will continue to be "Made in America," which focuses on bolstering U.S. manufacturing and creating jobs. Here are three stocks spread across the auto/tires/trucks, computer and technology, and basic materials sectors that are already benefiting from the Trump presidency.
1. General Motors: Automobiles Made in the U.S.A. and Protected By Tariffs
The country's largest car manufacturer, General Motors (NYSE:GM), saw its stock surge 7% to 52-week highs after a Trump victory was called. Trump has had a firm stance on protecting U.S. automakers from foreign competition, especially cheaper foreign-made vehicles from China, which already face a 100% tariff on electric vehicle (EV) exports.
Import tariffs on vehicles and auto parts end up making non-American vehicles more expensive for consumers, creating a more favorable market for General Motors's products and its top four American brands: Chevrolet, Buick, GMC, and Cadillac.
General Motors is outperforming U.S. competitors like Ford Motor (NYSE:F), who are just starting to regain some footing after finally beating its Q3 EPS estimates by 2 cents. General Motors crushed its latest third quarter of 2024, reporting EPS of $2.96, beating analyst estimates by 58 cents. This marks the third consecutive quarter of 35 cents+ EPS beats. Revenues grew 10.5% YoY to $48.76 billion, crushing analyst estimates for $44.67 billion by an eye-watering $4.09 billion.
General Motors raised the lower end of its full-year 2025 EPS estimates to a range of $10.00 to $10.50, up from $9.50 to $10.50 versus $9.97 consensus estimates. Automotive free cash flow was raised to the $12.5 billion to $13.5 billion range, up from $9.5 billion to $11.5 billion.
2. Intel: Semiconductors Made in the U.S.A. Supported by the CHIPS Act
American semiconductor giant Intel (NASDAQ:INTC) has been suffering for several years now as competitors like NVIDIA (NASDAQ:NVDA) dominate the artificial intelligence (AI) chip market. While major chip makers like NVIDIA, Advanced Micro Devices (NASDAQ:AMD), Marvell Technology (NASDAQ:MRVL) and Broadcom (NASDAQ:AVGO) outsource their chip production overseas to Taiwan Semiconductor Manufacturing (NYSE:TSM), Intel continues to produce them in their domestic fabrication (fabs) foundries.
The CHIPS and Science Act of 2022 seeks to bolster the domestic semiconductor supply chain to reduce reliance on foreign suppliers for national security and economic competitiveness. It includes $52 billion in subsidies and incentives for chip makers to build and expand fabs in the U.S.
Intel was awarded up to an additional $3 billion under the CHIPS Act to construct four foundries in the United States. This was in addition to the $8.5 billion awarded in March of 2024.
Payments are expected to start at the end of the year. Intel needs all the help it can get as it continues to struggle. The company lost 46 cents per share in its third quarter of 2024. Revenues continued to contract as they fell 6.3% YoY to $13.3 billion. Gross margin fell 27.8 points to 18%. The company is undergoing a $10 billion cost reduction plan, which includes reducing headcount by over 15% of its workforce or 15,000 jobs. However, the company did provide some upside guidance for Q4 as it expects a positive EPS of 12 cents versus 8 cents, consensus estimates, and a non-GAAP gross margin improvement of 39.5%. Shareholders are looking forward to the spin-off of its foundry business in 2025.
3. Nucor: Galvanizing the American-Made Steel Supply Chain
As one of the largest domestic steel producers, Nucor (NYSE:NUE) was a major benefactor of Trump’s previous administration policies. The imposition of 25% tariffs on imported steel was a boon to the company as it made foreign steel more expensive, reducing competition.
Critics argue that this enabled U.S. steel manufacturers to bump their prices without competition. This fanned the flames of inflation, driving up higher prices for the U.S. consumer, from construction to appliances and vehicles. While major trading partners like Mexico were able to gain exemptions, their status may face more scrutiny with the new Trump administration.
Nucor is also a direct beneficiary of domestic infrastructure spending, which has bipartisan support for rebuilding America’s infrastructure. Bridges, highways, and construction projects all bolster the demand for steel. Not all domestic steelmakers will benefit from Trump's return to the White House. The proposed acquisition of United States Steel (NYSE:X) by Japan’s Nippon Steel Co. would almost certainly be blocked by Trump. Trump wants to ensure a 100% American supply chain for all essential goods.