The White House recently confirmed increased tariffs on various Chinese goods. Investors and traders are on the lookout for stocks to benefit from China tariffs as the change could significantly impact many industries, including the U.S. automotive industry, electric vehicles (EVs) and others. Tariffs were, in fact, applied to several important products such as solar cells, cranes, steel, aluminum and batteries.

Finding stocks to benefit from China tariffs is not an easy task amid these changes. Tariffs may impact overall market conditions and even affect the timing of the Fed’s interest rate cut. Therefore, subsequent market fluctuations likely create risks and opportunities for investors, making picking the right sectors critical.

As companies face higher import costs, particular sectors and stocks will undoubtedly perform well while others may struggle. Given the broad scope of industries involved, several names are poised to benefit from the latest China tariffs beyond just EV manufacturers receiving media attention.

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The market has already begun to react to Biden’s China tariffs, so traders may need to consider additional areas to find stocks well-positioned to benefit from trade winds turning. Three picks are:

First Solar (FSLR)

Source: T. Schneider / Shutterstock.com

First Solar (NASDAQ:FSLR) could be among the major stocks to benefit from China tariffs. As a domestic producer of solar panels, First Solar manufactures and provides utility-scale photovoltaic (PV) power plants. Its cadmium telluride panels reduce carbon emissions compared to conventional crystalline silicon panels. This places the company to gain market share from Biden’s solar tariffs on China as well as seize opportunities from companies seeking to minimize their carbon footprint. The White House’s focus on combating climate change further supports company growth. Furthermore, the tariffs will apply to solar panels and cells imported from Cambodia, Malaysia, Thailand and Vietnam, which currently dominate U.S. solar imports.

Despite nearly doubling its EPS from $0.12 per share to $0.21 per share in the first quarter compared to the prior quarter, First Solar maintains a modest price-to-earnings (P/E) ratio of 20.7x for a technology company. While FSLR stock has risen substantially in recent months, analysts see continued upside, with an average price target over 15% above the current level of $228.27 per share.

Embecta (EMBC)

Source: shutterstock.com/Michele Ursi

Another area targeted by recent U.S. tariffs is healthcare equipment, including syringes and face masks. One of the large manufacturers in this industry is Becton Dickinson (NYSE:BDX). However, its recently spun-off dialysis spin-off Embecta (NASDAQ:EMBC) presents one of the better stocks to benefit from China tariffs. Its smaller size and better valuation ratios make it potentially more attractive than its former parent company.