Wall Street is facing tough times, weighed down by the new administration’s policies. U.S. President Donald Trump announced more aggressive-than-anticipated tariffs against major trading partners, widening the fears of a global trade war.

Trump yesterday unveiled a 10% baseline tariff on all imports to the United States, effective April 5, and higher duties on dozens of other countries, including some of the United States' biggest trading partners. The move imposes steep tariff rates on many countries, including 34% on China, 20% on the European Union, 46% on Vietnam, 32% on Taiwan and 26% on India — all set to take effect on April 9.

In total, approximately 185 countries will be impacted by the tariffs, and the new duties set the U.S. tariff rate at its highest level in over 100 years. Trump's administration also confirmed that 25% global car and truck tariffs will take effect as scheduled on April 3 and that duties on automotive parts imports will be launched on May 3.

China urged the United States to immediately cancel its latest tariffs and vowed countermeasures to safeguard its interests. Meanwhile, the European Union is preparing additional countermeasures against U.S. tariffs in the event that negotiations fail. 

The new levies ratchet up the chances of a full-blown trade war that could trigger a sharp global economic slowdown. The announcement has sent shockwaves through the markets, with futures signaling massive sell-offs. The Dow Jones futures tumbled 2.5% in after-market hours yesterday and 2.1% at the time of writing in pre-market today, while S&P 500 futures fell 3.6% and 2.8%, respectively. Futures attached to the tech-heavy Nasdaq Composite sank 4.5% yesterday and 3.4% today at the time of writing (read: 5 Defensive ETF Strategies to Follow Amid Market Meltdown). 

Against such a backdrop, we have highlighted five safe haven ETFs that investors should add to their portfolio, especially if trade war fears continue to escalate. These products will likely benefit from the crisis and will be in focus in the weeks ahead.

Gold - SPDR Gold Trust ETF (GLD Quick QuoteGLD - Free Report)

Gold, viewed as a safe haven, has been on a relentless rally, reaching new all-time highs on several occasions, buoyed by trade gyrations. The yellow metal serves as a hedge against market turmoil and is often used as a means of preserving wealth during times of financial and political uncertainty, typically performing well when other asset classes struggle. As such, the ultra-popular product tracking this bullion, like GLD, could be an interesting pick. The fund tracks the price of gold bullion measured in U.S. dollars and kept in London under the custody of HSBC Bank USA. GLD is an ultra-popular gold ETF with an AUM of $92.1 billion and a heavy volume of about 8 million shares a day. SPDR Gold Trust ETF charges 40 bps in fees per year from investors and has a Zacks ETF Rank #3 (Hold), with a Medium risk outlook (read: Gold or Gold Mining: Which ETF is Better?).

Long-Dated Treasury - iShares 20+ Year Treasury Bond ETF (TLT Quick QuoteTLT - Free Report)

Products tracking the long end of the yield curve often provide a safe haven. The 10-year Treasury yields dropped to a five-month low of 4.04%, pushing bonds higher. TLT tracks the ICE U.S. Treasury 20+ Year Bond Index and has an AUM of $52 billion. Holding 47 securities in its basket, the fund focuses on the top credit-rating bonds with an average maturity of 25.71 years and an effective duration of 16.15 years. The expense ratio comes in at 0.15% and the average daily volume is heavy at around 32 million shares. However, TLT currently has a Zacks ETF Rank #4 (Sell).

Invesco Currencyshares Japanese Yen Trust (FXY Quick QuoteFXY - Free Report) ) 

The Japanese yen strengthened nearly 1% following new duties as the yen is considered a safe-haven currency in times of uncertainty. Investors could tap this via FXY, which appears to be a great way to play a future rise in the yen. It tracks the price of the Japanese yen and charges 40 bps a year in fees. The fund sees a good volume of roughly 248,000 shares per day and has accumulated $548.9 million in its asset base. FXY has a Zacks ETF Rank #3 with a Medium risk outlook (read: Top ETF Stories of Q1 2025).

Consumer Staples Select Sector SPDR Fund (XLP Quick QuoteXLP - Free Report)

Being defensive in nature, the consumer staples sector generally sees steady demand in the event of an economic downturn due to its low level of correlation with the economic cycles. It generally acts as a safe haven amid political and economic turmoil. While there are several choices in the space, XLP is ultra popular with AUM of $16.8 billion and an average daily volume of 13 million shares. It offers exposure to the broad consumer staples sector by tracking the Consumer Staples Select Sector Index and holds 38 stocks in its basket. XLP charges 8 bps in annual fees and has a Zacks ETF Rank #3 with a Medium risk outlook.

Utilities Select Sector SPDR (XLU Quick QuoteXLU - Free Report)

Being a low-beta sector, utility is relatively protected from large swings (ups and downs) in the stock market and is thus considered a defensive investment or safe haven amid economic or political turmoil. With AUM of $18 billion, Utilities Select Sector SPDR provides exposure to a small basket of 31 securities by tracking the Utilities Select Sector Index. It charges 8 bps in annual fees and sees a heavy volume of around 9 million shares on average. XLU has a Zacks ETF Rank #2 (Buy) with a Medium risk outlook.