World development shares are dropping their lustre as ‘Trump Tariffs’ (and reciprocal motion from US commerce companions) threaten the economic system. The impression of contemporary import taxes might be devastating throughout a wide range of industries.

I’ve misplaced none of my urge for food for UK shares, though I’m extra cautious with what I purchase right this moment. One technique to shield myself is to decide on counter-cyclical shares — and corporations in historically defensive industries — whose earnings forecasts are boosted or unaffected by present financial circumstances.

With this in thoughts, listed here are two nice development shares I’m contemplating proper now.

H&T Group

Pawnbrokers like H&T Group (LSE:HAT) are likely to thrive throughout powerful instances like these. Actually, this Different Funding Market (AIM) operator mentioned final month that “demand for our core pawnbroking product continues to develop, with significantly robust lending demand within the ultimate ten weeks of the 12 months, together with file ranges of latest prospects borrowing from us for the primary time“.

With the cost-of-living disaster dragging on, Metropolis analysts expect earnings at H&T to rise 5% in 2025. By the way, this additionally leaves the corporate buying and selling on a low price-to-earnings (P/E) ratio of seven.1 instances.

The buying and selling panorama is particularly beneficial for H&T right this moment due to the gold price surge. Bullion hit new file highs above $3,151 per ounce earlier right this moment, and is tipped by many to maintain climbing as fears over the financial and geopolitical panorama rise.

On the draw back, retailers like this face contemporary value pressures because the Nationwide Residing Wage and Nationwide Insurance coverage contributions rise. H&T thinks NI modifications alone will lead to a £2m hit every year.

However on stability, I nonetheless assume the pawnbroker’s an excellent inventory to contemplate in these powerful instances.

Chemring Group

Together with the broader defence sector, shares in Chemring Group (LSE:CHG) have elevated in worth following Russia’s invasion of Ukraine in 2022.

This particular FTSE 250 contractor has additionally rose strongly in February and March following a £1bn-plus takeover method from Bain Capital. But based mostly on present earnings forecasts it nonetheless affords first rate worth for cash.

Metropolis analysts assume earnings will rise 27% within the present monetary 12 months (to October 2025). This leaves it buying and selling on a ahead P/E ratio of 18.5 instances and a P/E-to-growth (PEG) ratio of 0.7.

Any PEG under one suggests {that a} share is undervalued.

The secure nature of arms spending has made defence shares conventional lifeboats in powerful instances like these. However the sector’s attraction is even better right this moment (in my view) as trade consolidation ramps up and international rearmament accelerates.

Chemring’s personal order consumption rose 187% within the 12 months to face at a file £1.4bn.

The corporate has commented that “with the brand new administration within the US pushing for important will increase in NATO defence spending and with EU member states recognising the essential must scale up and co-ordinate defence manufacturing throughout Europe, the market alternative for Chemring continues to develop“.

Diminished arms spending from the US stays a risk. However I imagine on stability it’s value critical consideration in geopolitically-uncertain instances.