Uncertainty continues to grip markets as the Donald Trump administration signals a potential return to aggressive trade tariffs.
On Sunday, Treasury Secretary Scott Bessent warned that if trading partners fail to negotiate in good faith, the U.S. will reinstate the steep tariffs imposed on April 2, dubbed “Liberation Day.”
The original ‘Liberation Day’ sparked immediate market turmoil, with China hit hardest. The S&P 500 erased post-election gains, and broader markets slumped until April 9, when President Trump paused most tariffs for 90 days, except for China.
Bessent’s remarks suggest that the pause may soon end, raising the threat of “Liberation Day 2.0.” As trade tensions resurface, investors may want to consider defensive stocks to weather potential volatility. Here are two to watch:
Procter & Gamble (NYSE: PG)
Procter & Gamble (NYSE: PG) is an ideal defensive stock, thanks to its lineup of essential household products that remain in demand regardless of economic conditions. Consumers prioritize staples like detergent, diapers, and razors even during downturns.
P&G’s strong U.S. presence and pricing power help buffer tariff-related costs. With brands like Tide, Pampers, and Gillette, the company commands a leading market share, supported by $2 billion in annual product development and $8 billion in global advertising.
Any uncertainty is likely to be offset for income-chasing investors, considering P&G has raised its dividend for 67 consecutive years and maintains a sustainable 62% payout ratio, with a current yield of 2.5%.
As of the last session, PG stock closed at $163.28, up 0.58%, and has gained nearly 4% over the past week.
Johnson & Johnson (NYSE: JNJ)
Johnson & Johnson (NYSE: JNJ) stands out as a reliable defensive pick amid renewed trade risks, thanks to its broad diversification across pharmaceuticals and medical devices through over 275 subsidiaries.
Its products, including treatments like Stelara and various medical devices, benefit from consistent demand driven by aging populations and ongoing healthcare needs.
Additionally, the company plans to increase U.S. investment by over $55 billion in manufacturing, R&D, and technology, up 25% from the previous four years.
Johnson’s acquisition of Intra-Cellular Therapies, expected to add over $5 billion in peak annual sales, further expands its footprint in neuroscience.
With projected 2025 revenue growth of 3.3% to 4.3%, 26 product platforms generating over $1 billion annually, and a 63-year streak of dividend increases, J&J offers stability and long-term growth.
As of press time, JNJ stock was valued at $151, ending the last session up 1.5%.
Though no stock is guaranteed to rally amid tariff uncertainty, Procter & Gamble and Johnson & Johnson’s business models position them well to weather volatility and potentially outperform.
Featured image via Shutterstock
