Is your portfolio under attack from Trump’s tariffs? 5 critical moves to make right now

A fresh round of US tariffs, which raise total duties to a steep 50% on a wide range of Indian goods, is weighing on the Indian stock market, although the impact is far from uniform. Key export-heavy industries are now facing a serious test of resilience.

For investors, the picture is mixed. Some stocks are sliding, while others remain steady, and a few may even benefit from the disruption. The question is: how do you shield your portfolio from this tariff storm? Experts suggest avoiding knee-jerk reactions and instead taking practical steps to build a tariff-proof portfolio. Here are five smart ways to do it.

1) Know where the hit is hardest

The sharpest pressure will fall on export-dependent sectors. Textiles, garments, gems and jewellery, seafood, leather goods, furniture, carpets, chemicals, and auto components are directly in the line of fire. “Together, export-driven companies and MSMEs in these sectors could face steep revenue losses and reduced margins,” says Vinit Bolinjkar, Head of Research at Ventura.

Puneet Sharma, CEO and Fund Manager at Whitespace Alpha, adds: “When duties suddenly spike, buyers quickly shift orders to other countries. That hurts both margins and volumes for Indian exporters.”

2) Spot the safe havens

Not every sector is under pressure. Pharma, IT services, electronics, and semiconductors are largely insulated from tariffs — and could even benefit from a weaker rupee since their revenues are dollar-linked.

Domestic-focused businesses also look resilient. Consumer goods, banks, infrastructure, and power remain steady as they are less reliant on exports.

As Bolinjkar notes: “Investors should consider companies with a strong domestic presence and those gaining from government policies. FMCG, consumer durables, auto OEMs, EPC/infrastructure, and power are expected to do well.”

3) Diversify your bets

The strongest shield against tariff shocks is diversification. Spread investments across sectors and geographies; don’t concentrate too heavily in export-driven names.

Sharma explains: “Tariffs usually impact only a handful of sectors, so spreading bets across industries and even geographies helps cushion the blow.”


Arihant Bardia, CIO and Founder of Valtrust, adds: “International diversification should be treated as a primary, not secondary goal. It provides access to global leaders and acts as a hedge against a weak rupee.”

4) Focus on company strength, not just sector labels

Even in troubled sectors, not every company will sink. Firms with strong balance sheets, pricing power, and diversified markets are better positioned to ride out the storm.


“During tumultuous times, companies with adaptable models and multiple markets often outperform competitors,” says Bardia.


5) Adjust, but don’t panic

Should you tear up your portfolio and start over? Experts say no. “These are political shocks — disruptive in the short run, but rarely permanent,” says Sharma. “If your portfolio is built around strong businesses with long-term earnings power, those fundamentals don’t change because of a tariff headline.”

The smarter approach is to trim excess exposure to vulnerable sectors, rebalance where necessary, and stay patient.

Analysts highlight a few names worth tracking over the next three to four months:

- Banks: HDFC Bank, ICICI Bank

- Domestic consumption: Hindustan Unilever, Nestle India, Radico Khaitan

- Auto OEMs: Maruti Suzuki, Ola Electric

- EPC/Infrastructure: Larsen & Toubro, Interarch Building Products

- Capital goods: Transformers & Rectifiers India

With diversification, a tilt toward domestic demand, and a focus on strong balance sheets, investors can build portfolios that weather tariff shocks and remain on track for long-term growth.

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)