Defensive by Design: How Kimberly-Clark is Weathering the Tariff Storm

Kimberly‑Clark Corporation (NASDAQ:KMB) is one of the best trade‑war resistant stocks to buy now. On July 25, 2025, JPMorgan analyst Andrea Teixeira maintained her Underweight rating on KMB while cutting the price target from $126 to $125, citing persistent trade‑tariff pressures and margin constraints that could limit near‑term upside potential.

That caution is well‑grounded. In April 2025, Kimberly‑Clark revised its annual profit outlook downward, warning of roughly $300 million in new costs this year stemming from U.S. import tariffs, which have pushed total cost of goods sold to be around $500 million higher than in 2024. Despite largely domestic manufacturing, supply chain complexities tied to trade tensions are weighing on profitability and organic growth.

Kimberly‑Clark is also finalizing a $3.5 billion sale of its global tissue business (excluding North America) to Brazilian pulp maker Suzano, as part of its broader refocusing efforts amid these macro pressures.

Kimberly‑Clark produces well-known brands like Kleenex, Huggies, Scott, and Kotex. While tariffs and escalating trade costs challenge margins, the company’s defensive household staples, brand equity, and recent restructuring moves provide a buffer.

While we acknowledge the potential of KMB as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.