Jim Cramer lists stocks that could withstand impact of Trump’s tariffs

CNBC’s Jim Cramer on Thursday reflected on the market instability tied to President Donald Trump’s tariff announcements and suggested a few sectors and stocks that could withstand the new trade policies.

“Wall Street hates tariffs, but what it hates even more is inconsistency and unpredictability,” he said.

Trump has slated substantial tariff hikes on some of the U.S.’s biggest trading partners, including Canada, Mexico, China and countries in the European Union. These increases create significant issues for a wide swath of sectors reliant on global manufacturing and trade. February has seen the indexes waver and even dive as investors weigh the implications of these tariffs and Trump’s inconsistent messaging.

Retail and consumer packaged goods stocks are vulnerable to higher tariffs, he noted, as well as transports, which could see business take a hit if global trade slows.

While much of Big Tech is at risk because these companies source many materials for their products from China, Cramer suggested that cybersecurity software outfits might be the safest choices in the sector because they don’t have much tariff exposure.

Oil and gas stocks may be poised to do well in this environment, according to Cramer, naming Enterprise Products Partners in particular. Utility companies may also work, he continued, naming Sempra, American Electric Power and Entergy. He added that most bank stocks will be able to perform as the government loosens regulations, especially Wells Fargo. Restaurants could also see success because they’re not as reliant on imports, and he said he likes Brinker International and Texas Roadhouse. Cramer claimed steelmaker Nucor is the biggest winner so far, as tariffs can hinder cheap steel imports from abroad.

“These are the stocks that can hold their value no matter what county’s next on the tariff docket,” he said.

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Disclaimer: The CNBC Investing Club Charitable Trust holds shares of Wells Fargo and Texas Roadhouse.