Notice: Buy Taiwan Semiconductor (TSM) and Constellation Brands (STZ) Before April 2nd

 The stock market briefly entered correction territory last week as concerns about the economic fallout from President Trump’s trade policies grow. Trump maintains that new, higher tariffs will be imposed on the U.S.’s trading partners on April 2 unless they lower their duties on U.S. goods coming into their countries.

While the goal of a level playing field is admirable, and Trump insists his tariffs are simply reciprocal to those imposed on the U.S., it has created market jitters that are sending stocks lower. Because of the impact trade barriers will have on the economy, especially if other countries retaliate by hiking their import duties even more, the effect will be widely felt.

Yet not every company will lose out. In fact, some might become big winners from the fallout. Below are two stocks you just might want to lock in now before the new tariffs go into effect at the start of next month.

Taiwan Semiconductor Manufacturing (TSM)

Global foundry giant Taiwan Semiconductor Manufacturing (NYSE:TSM) is the first stock to buy ahead of Trump’s broader tariffs kicking in. A series of new duties have already been imposed, but Trump says more are to come on Apr. 2, and he has raised the specter of as much as 100% tariffs on semiconductors, including those from Taiwan.

The pure play foundry has committed to investing $100 billion in the U.S. that would add five new cutting-edge fabs to produce advanced chips here. The move would dodge tariffs while locking in North American clients like Nvidia (NASDAQ:NVDA). The region represents 70% of total sales. 

TSM already has a facility in Arizona that is online and producing 4 nanometer (nm) chips with two more slated by 2027 to produce advanced 2 nm chips. 

Taiwan Semi is already shifting capacity stateside, and Taiwan’s government has tried to avoid strains in relations with the U.S., saying the tech industry’s prowess on each side of the process is a “win-win” for each. Of course, there are risks. Trump has also talked of scuttling the CHIPS Act that was helping to finance the construction of chip facilities, including those of TSM, in the the U.S. The 2 nm plant isn’t built yet and won’t be live for another two years, which could result in changes being made or scuttled altogether. 

Still, Taiwan Semiconductor Manufacturing has a 62% global foundry share and it is possible it may take some ownership stake in Intel‘s (NASDAQ:INTC) foundry operations. TSM stock trades at 16 times next year’s earnings and analysts see profits growing 23% annually long term. Its shares are down 11% year-to-date over the trade concerns, making it a great stock to buy before April 2 as less insulated stocks falter.

Constellation Brands (STZ)

Constellation Brands (STZ) is the second stock to buy ahead of the next round of tariffs going into effect. On the surface, tariffs on Mexican imports would seem to hurt the alcohol distributor as Mexico brews 86% of its Corona and Modelo brands of beer, which could hit profits. Yet after Trump threatened to hike tariffs 200% on European wine after the EU said it would impose a 50% tax on American whiskey on April 1.

France, Spain, and Italy are major wine exporters to the U.S. Some 80% of the $6.8 billion imported last year was with the EU and in 2019, when a 25% tariff was imposed, French wine sales plummeted 54% while German imports tumbled 42%. A 200% tariff would obliterate the import market, but would cause a spike in sales of domestic wines. 

Constellation Brands wine and spirits segment saw a 16% drop in fourth-quarter shipments, but that would likely immediately reverse and spike higher as domestic wines became more popular. High-end brands like Robert Mondavi and Kim Crawford represent 13% of sales and would gain if French imports — which accounts for  35% of U.S. wine — got pricier. The EU is already walking back its threat to tax American whiskey.

There are a lot of moving parts for the alcohol distributor and beer is Constellation Brands biggest segment by far, some 85% of total revenue, but at just 12 times next year’s earnings, less than half the sector’s 30, it is worth it at expected long-term earnings growth of 8% annually. STZ stock is down 18% so far this year and 32% over the past 12 months as beer’s tariff risk looms, but the U.S. wine play is being ignored and could end up being the bigger story.

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