Recent trade tensions and tariff fears have battered certain U.S. and Chinese stocks in 2025. Investors grew wary as escalating trade rhetoric and steep tariffs threatened corporate profits and global supply chains.

But the U.S. and China recently signed a deal to pause their tariff war and significantly reduce existing levies against each other. U.S. tariffs on Chinese goods have dropped from 145% to 30%, and China has lowered its tariffs on U.S. goods to 10% from 125%. Now, analysts believe select stocks could be poised for a strong rebound. The tariff pause is in place for 90 days to allow the two countries to hopefully reach a more permanent trade deal. 

In turn, battered stocks are starting to turn a corner and rally. Here are three that could deliver more gains from here:

Stock #1: Wayfair (W)

Wayfair (W) is down 10.6% year-to-date but is up 60% in the last month on the back of tariff talks. Continued de-escalation could help the company make up the rest of its YTD losses and turn positive for 2025. 

Wayfair is an online furniture and home goods retailer that sources a significant portion of its inventory from China, and escalating tariffs hit the stock hard. Lower tariffs will now allow the company much more flexibility going forward.

Even before the pause, Wayfair gave investors reason for confidence. CEO Niraj Shah does not seem too worried. He said the company has a “healthy degree of insulation against tariff headwinds” and said that suppliers are absorbing a part of the tariff burden to maintain market share.

The mean price target at $44.47 implies just 12% from the current price, but there are price targets as high as $100 here.

Stock #2: RH (RH)

RH (RH) became an iconic loser amidst the tarif panic due to how the company’s CEO reacted on its earnings call as the stock tumbled. But since then, it is turning out to be a pretty big winner.

RH stock is still down 46% year-to-date, but those who’ve bought the dip near the trough are sitting on a pretty gain. Shares are up nearly 40% over the past month. The stock still has a long way to make a full recovery, and that’s what bulls are betting on as tariffs ease. The upside potential is in the triple digits. If it goes back to its January 2025 peak, you’re looking at almost 110% upside potential from here.

You should keep in mind, though, that the tariff thaw has caused it to recover almost to levels seen before “Liberation Day” was announced. The company has problems beyond just the tariffs and has been on a downtrend since the start of the year, so moderating tariffs alone are unlikely to take it back to $400.

The mean price target at $263 implies 25% upside.

Stock #3: Best Buy (BBY)

Best Buy (BBY) is down 14% year-to-date and has recovered by more than 30% from its 2025 low. Along with the upside potential from here, the stock also comes with a 5.2% dividend yield.

Best Buy has taken a milder hit compared to the more tariff-sensitive peers on this list, so the recovery potential is also muted. BBY shares still tanked earlier after CEO Corie Barry warned that tariff costs would likely force price hikes on electronics. The company estimated a 1% sales headwind from 10% China tariffs, with higher tariffs on Chinese imports expected to take out an even larger chunk of its same-store sales. Best Buy’s supply chain, heavily tied to Asian imports, seemed poised for a squeeze.

Thankfully, that did not happen. Prior to the 90-day tariff pause, Trump announced temporary exemptions on tariffs for consumer electronics products.  BBY stock has recovered accordingly, so the easy gains might be gone.

Best Buy is quietly leaning into services like Geek Squad and in-home consultations to offset tariff and sales pressures. These high-margin offerings could be a dark horse if retail falters. It’s a solid hold with 20%-30% upside potential if trade de-esclation continues. 

The mean price target of $87.65 implies almost 20% upside.