US-China Tariff Talks: Some Companies Might Thrive Amidst Chaos

Market uncertainty looms as US-China tariffs may pause for negotiations. However, companies like Costco, Uber, and Berkshire Hathaway are positioned to not only survive but thrive in the turbulent trade environment.

Date: 23-05-2025

AI Rating: 7

The ongoing negotiations over tariffs between the US and China present a complex backdrop for investors. While the report suggests that a temporary pause may help ease tensions, it highlights the potentially lasting impact of tariffs on affected industries driven by foreign suppliers and customers.

Costco emerges as a resilient player, with an expected revenue growth of just under 8% this year, a mark consistent with its long-term trends. The company sources about two-thirds of its merchandise locally and leverages its size to negotiate better prices with suppliers, suggesting a strong footing against rising costs. This approach is likely to enhance Costco's profit margins and contribute positively to its financials.

Uber Technologies also garners attention for its robust market positioning. As the leading entity in ride-hailing in the US, its growth trajectory remains positive, potentially seeing mid-teen growth rates in revenue despite tariff conditions not directly influencing service-based models. This establishes Uber as a stock with a reasonable outlook amidst potential economic strains.

Berkshire Hathaway stands out due to its diversification across strong American brands insulated from international trade issues. With about one-third of its market cap tied to established domestic brands, this conglomerate provides investors with a stable avenue amidst tariff uncertainties and import costs.

Overall, while the tariff discussions may evoke concern, the outlook for Costco, Uber, and Berkshire remains optimistic based on their respective strengths in revenue growth, profit margins, and market positioning.

Stocks: COST UBER BRK.B