Investors seem to be more and more worried about a trade war with China since President Donald Trump has been focused on the Asian economic powerhouse with this ongoing trade tensions between the two countries. Trump has increased taxes on $200 billion in Chinese products from 10 % to 25%. He also tells that the American economy could make new tariffs of 25% on $325 billion more Chinese goods.

We are going to approach a number of industries that could be damaged by the changes in our policy, and those investments that are more at secured for investors that wish to avoid loses and maybe even profit from their investments.

Trade War: What would be influenced by increased tariffs

The 25% tariffs apply to different consumer goods, including home appliances, carpet, shampoo and also seafood. It also affects the industries related to chemicals, steel, and aluminum. Because of that, investors may want to stay away from any industries that use those products as a primary source.

After the first increase of tariffs was imposed by the U.S. last year, China started to respond with an increase of 5% to 10% on $60 billion of U.S. products, hurting mostly small businesses and farmers. After the U.S. raised the tariffs again last week, China declares another increase of its own tariffs to 10%, 20% and 25 5, starting June 1.

An analyst of J.P. Morgan recently told investors to look out for the American semiconductor industry, which is extremely exposed to China. The bank notes that a couple of chip companies have more than 50 percent of their sales incoming from China, so if the industry’s stocks get lower, it’s an alarming sign that the market is preparing for the trade war to worsen and get deeper.

While tariffs will probably hurt these sectors directly, the tariffs also have other ricochet effects. For instance, the small business owner who sees an increase in his costs may not be able to go eat out as frequently or may have to wait before buying a new car…

Nevertheless, investors looking to escape the worst of the trade war should look to sectors that get all or almost all of their sales from U.S. sources.

6 ways to help protect against this trade was.

1. High yield savings account

It doesn’t get more secure from trade concerns than a savings account. You’ll get a constant and known level of return for having your money in the bank, and it doesn’t get affected by the fluctuations of the stock market at all.

2. Telecoms

The telecom industry includes traditional telecommunication companies as well as cable juggernauts ones like Comcast or Charter Communications. These companies benefit from being an extremely domestic focus and have no exposure to China.

One way to buy into the telecom industry is through an ETF that have shares of the biggest players in the industry.

3. Healthcare

The main benefit of investing in healthcare providers is that the demand for their product is constant and increasing, while in reality, all the payments come from insurers or federal and state governments. Their revenues should stay stable even when other sectors get affected by tariffs.

4. Real estate investment trusts

Real estate investment trusts, or REITs, are companies that own and manage real estate. They give back substantial dividends in exchange for not paying tax at the corporate level.

REITs can be a great investment for those looking to avoid the tariff changes because their rental contracts are typically signed in for years at a time. These contracts mean that shorter-term problems like tariffs will have a small effect on the structure of the business.

5. The VIX Index

The VIX measures the market’s predictions of future volatility. Usually, it increases when the market is down and investors become more anxious about the future of the indicators. Because of how it’s structured, the VIX is not the best asset to keep indefinitely, but it’s potentially beneficial for those speculating when the market will be uncertain during difficult times.

6. Precious Metals

If you’re looking to make money on the market’s upheaval, one possible way to do that is by investing in precious metals. This is a really good time for a short time investment or long once as well. In days of stock market uncertainty, you can always count on a secure commodity to do well. Gold, Silver, Platinum or Palladium, the precious metal market always increase in time of tension and uncertainty.

Bottom line

If you think the trade situation is going to get worse, these investments could be a great outlet for new money. But even these more secure investments can decline in value if the general market becomes negative. So besides precious metals, there’s rarely a perfect place to protect your assets from these threats.