Certain domestic companies like Ford, GM, and First Solar could benefit from US-China trade tensions.

From CNBC: 2024-05-15 07:21:04

The Biden administration’s decision to impose tariffs on $18 billion worth of imports from China could benefit certain stocks, according to Morgan Stanley. These tariffs cover a range of goods, from electric vehicles to solar cells, in an effort to address trade practices that hinder global supply chains. Morgan Stanley analysts believe that domestic companies like Ford, General Motors, and First Solar could see increased demand for their products as a result of the tariffs.

First Solar, a U.S. solar panel manufacturer, is expected to be a significant beneficiary of trade policies that protect U.S. supply chains. With the recent anti-dumping petition filed by domestic solar manufacturers, the potential for improved pricing and bookings momentum could further boost First Solar’s stock. General Motors and Ford also stand to benefit from changes to the interpretation of provisions in the Inflation Reduction Act, potentially driving higher sales of traditional gas-powered vehicles.

Incentivizing locally manufactured electric vehicles could impact sales, but the demand for gas-powered cars may increase due to low EV penetration. While legacy automakers like General Motors and Ford face challenges in transitioning to EVs, investors maintain optimism in their ability to adapt. Both companies have seen stock gains in 2024, indicating potential growth opportunities in the changing market landscape.



Read more at CNBC: Morgan Stanley says these stocks could win as U.S.-China trade tensions resurface