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3 European Stocks Built to Shrug Off Tariffs
Authored by Dan Schmidt. Posted: 1/28/2026.
At a Glance
- The Trump administration reignited tariff threats to Europe in January over the purchase of Greenland.
- While the Greenland debate seems to have abated, the threat of tariffs on U.S. trading partners isn't likely to end anytime soon.
- These three European stocks are largely immune to tariffs and can serve as safe havens for capital if these threats return.
A year into the second Trump administration, the market conversation has been dominated by tariffs. Threats to raise duties on Canada and Mexico, new proposed levies on Europe and Asia, and even talk of worldwide "reciprocal" tariffs have repeatedly rattled markets.
This year began with a fresh batch of European tariff threats after Denmark rebuffed an offer to purchase Greenland, and as of late January, South Korea faces 25% tariffs for not approving the 15% tariffs introduced by last year's trade deal. Needless to say, markets have reacted.
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[[Click here now to view.]]While many threats are saber-rattling, they have prompted U.S. trading partners to insulate themselves from unpredictable import-tax policies. India and China have been particularly aggressive in filling the void left by the United States, and comments from U.S. and European officials at the Davos summit last week signaled that this chilly relationship isn't thawing anytime soon. European stocks continue to outpace U.S. peers, and the gap has widened over the last three months while the S&P 500 has advanced less than 1.5%.
The "Sell America" trade is likely overblown; nonetheless, international diversification has been a growing trend for several years. With gold and silver reaching new all-time highs, it's clear investors are spreading capital across borders and asset classes. Recent moves by BlackRock and Vanguard to reallocate funds internationally underscore this shift and nudge more investors toward global diversification. The best-performing international stocks in 2026 will likely be those with wide moats that insulate them from U.S. tariffs.
3 European Stocks Minimally Affected by Tariffs
Europe's tariff reprieve could be short-lived, especially if the bloc continues seeking new agreements with other partners. The best way to avoid future unpredictability is to invest in European companies that generate revenue outside the United States or in firms that sell products and services likely to be exempt from import taxes. Here are three stocks available to trade in the United States that fit that bill. (Note: these stocks trade in the U.S. as American Depositary Receipts (ADRs). Make sure you understand the differences between ADRs and ordinary shares before buying.)
Rheinmetall: Primary Beneficiary of Increased Defense Spending in Europe
One of 2025's biggest winners was German defense contractor Rheinmetall AG (OTCMKTS: RNMBY), up nearly 200% over the past 12 months and about 1,800% over the last five years. We wrote about Rheinmetall's breakout last year as the Ukraine war deepened and Germany removed the debt brake that had limited defense spending.
With recent U.S. pressure around Greenland, European defense budgets will likely seek to favor domestic contractors over U.S. firms like Lockheed Martin Corp. (NYSE: LMT), which could benefit companies such as Rheinmetall.
The stock is nearing a key inflection point: the share price is approaching the 50-day simple moving average (SMA) that served as strong support for much of 2025. Despite some technical wobbling, the fundamental tailwinds are intact for Rheinmetall to deliver substantial gains again in 2026.
BT Group: Safe Sector and Strong Dividend
Utilities and telecommunications stocks are often safe havens, and BT Group plc (OTCMKTS: BTGOF) provides mobile and broadband services across the U.K. market. Unlike many European telecom firms, BT Group's revenue comes almost entirely from domestic customers, and it exports little to the United States. Consistent revenue, a healthy dividend (about a 4.2% yield), and insulation from trade-war risk make it an attractive option; shares are up more than 35% over the past 12 months.
Technically, the stock appears to be consolidating as the 50-day and 200-day SMAs converge. The Moving Average Convergence Divergence (MACD) indicator is gaining momentum, suggesting short-term upside potential.
Veolia: Is a Breakout Imminent After a Year of Sideways Trading?
Sometimes a slow burn produces the best results. You wouldn't keep watching a show like Severance if it explained all the mysteries in the first few episodes; similarly, undervalued stocks in international markets can stay underappreciated for years.
Veolia Environnement SA (OTCMKTS: VEOEY) is one of those companies. While its work isn't glamorous, it is essential: Veolia manages water and waste treatment, services that cannot be exported or imported across borders. Its contracts are typically long-term and indexed to inflation, providing steady income that's resistant to trade-war turbulence. The company pays about a 2.9% dividend yield and trades at roughly 8 times forward earnings.
After a year of sideways action, Veolia appears poised for a technical breakout in 2026. A bullish wedge has formed on the daily chart—characterized by lower highs and higher lows—which is often a continuation pattern that precedes the next wave of momentum. Veolia is nearing the wedge's tipping point, and if the pattern confirms, an upward move could occur at any time.
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