Investors looking for stocks that could be immune to U.S. President Donald Trump’s trade tariffs might want to consider small-cap e-commerce company Etsy (NASDAQ: $ETSY).
Founded in 2005, Etsy is a U.S. e-commerce company that specializes in the sale of handmade and vintage items, as well as crafts and craft supplies.
Items sold through Etsy’s platform include everything from jewelry and handbags to clothing and home decor.
Etsy recently got some good news when the Trump administration agreed to maintain the “de minimis provision” that allows small packages valued at less than $800 U.S. to enter America duty free.
There had been concern that placing duties, or tariffs, on packages worth $800 U.S. or less would hurt shipments from U.S. e-commerce companies such Etsy, sending its stock lower.
However, economists warned that removal of the de minimis provision would overwhelm U.S. Customs as more than 80% of U.S. e-commerce shipments are for goods valued at less than $800 U.S., including most things bought and sold on Etsy’s platform.
With a market capitalization of $6 billion U.S., Etsy is a small-cap stock. Its share price has struggled lately, having fallen about 30% over the last 12 months.
However, there might now be an opportunity for investors to buy the stock on the cheap before it rebounds and climbs higher.
At $54.18 U.S., the stock is currently trading not far from its 52-week low of $47.11 U.S. a share.
If the goal is to buy low and eventually sell high, ETSY stock might be worth consideration for investors with long time horizons.
