2 FTSE 100 shares to consider as tariff threats explode!

The prices of FTSE 100 shares are falling as investors digest fresh trade tariff threats from the US. When I last checked, the UK’s premier share index was last 0.5% lower in start-of-week trading.

The intensifying tug-of-war over Greenland took a new turn over the weekend. US President Trump threatened to slap tariffs of 10% on several European countries (including the UK) that oppose his planned takeover of the territory. These will come in on 1 February, and rise to 25% in June, he said.

Tariff uncertainty rocked global stock markets in 2025. Yet it didn’t stop the FTSE 100 rising more than 20% over the course of the year. And 2026 could be another blowout year even if trade tensions intensify.

However, it might pay for investors to consider protecting themselves from any market volatility. In this regard, Fresnillo (LSE:FRES) and SSE (LSE:SSE) could be top stocks to take a close look at.

Here’s why.

Leading the index

Gold stocks are typically the greatest beneficiaries of geopolitical and macroeconomic upheaval. With the Greenland saga, we have both.

And so Fresnillo shares are currently the FTSE index’s biggest riser today (19 January). Up 4.3%, they’ve been driven by both gold and silver prices touching new peaks.

Buying gold shares doesn’t guarantee a positive return when metal prices increase. Operational issues at the exploration, mine development and production phases — which are not uncommon — can see these companies sink in value.

But with seven working mines and many early-stage assets Fresnillo’s enormous scale substantially reduces this threat. If one project encounters problems the impact on share price and dividends can be negligible.

Furthermore, the comnpany’s scale enables it to better capitalise on the precious metals surge than most other producers. It’s the world’s largest silver producer, and Mexico’s leading gold digger by volume.

At £39.04 per share, Fresnillo’s share price trades on a forward price-to-earnings growth (PEG) ratio of 0.5. At below 1, this suggests the miner still offers tremendous value today.

Another FTSE 100 riser

Electricity producers like SSE are other classic safe havens in uncertain times. Energy demand remains broadly unchanged across the economic cycle, including when tariff tensions explode.

Reflecting these defensive qualities, SSE’s share price touched fresh record peaks this morning.

It’s true that investing in renewable energy stocks comes with added danger for investors compared with other energy producers. Power output (and by extension profits) are very much at the mercy of Mother Nature.

However, SSE’s large asset portfolio — along with its fleet of gas-fired plants — can significantly reduce the impact of localised issues. On balance I see the company’s focus on green energy as a net positive for growth, given the UK’s ultra-supportive renewables policy.

And SSE may receive an added boost if trade tariffs encourage the Bank of England to cut rates harder. Lower interest rates are favourable for the FTSE 100 firm’s asset values. They also help reduce borrowing costs.

The post 2 FTSE 100 shares to consider as tariff threats explode! appeared first on The Motley Fool UK.

More reading

• 2 FTSE shares that could keep riding this commodities boom
• The Fresnillo share price is up 430% in 1 year! Should I buy now?
• Could $100 silver push FTSE 100 miner Fresnillo even higher?
• FTSE 100 stocks are surging, but these epic UK shares are still cheap!
• Fresnillo was the FTSE 100’s best performer in 2025. Should investors consider buying it?

Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has recommended Fresnillo Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

See author's posts