US Canada Tariffs Put CNH Industrial Stock And Cross Border Suppliers In Focus

Tariff talk between the US and Canada has moved from background noise to a live risk, with possible 50% US tariffs on about $20b of Canadian imports putting cross border supply chains under the microscope. That kind of pressure can unsettle some stocks and create openings in others. This article walks through three large cap industrials from our US Canada trade screener to help you identify where the current stress might matter most.

The three large caps highlighted next are only a sample from this trade focused idea. The full screen surfaces 43 more industrial and materials companies with equally compelling tariff and cross border stories that are not covered here. If you want to identify and analyze the stocks that best fit your own risk and thesis, head straight to the North American Industrials with High US‑Canada Trade Exposure screener.

CNH Industrial (CNH)

CNH Industrial is a global equipment company that sells tractors, harvesters, construction machinery and related financing solutions across agriculture and construction, which puts it squarely in the path of any changes to US and Canada trade in machinery and components. Most of its revenue comes from industrial activities, with about US$12.4b from Agriculture and US$3.0b from Construction, while Financial Services adds roughly US$2.7b by funding equipment purchases and dealer inventories. The stock has a market value of about US$12.9b.

Investors watching US and Canada tariff headlines may want CNH Industrial on their radar because it brings together two important themes. It is tied to North American farm and construction cycles, where any easing of industrial tariffs could support demand and margin recovery. It is also investing heavily in precision technology that can deepen customer relationships and expand higher margin software and services. At the same time, CNH is working through thin current margins, sensitivity to steel and component costs, and a balance sheet that relies on external funding. How those trade policies and execution efforts play out could matter a lot more to this stock than the headlines alone suggest.

CNH Industrial’s push into precision tech and services could be masking a much bigger shift in how its Agriculture and Construction segments earn money. Get the full story in the analysis report for CNH Industrial

Build your own precision tech and tariff shortlist

CNH Industrial and the two other stocks in this list all came from a single Simply Wall St screen, but the real edge comes when you shape the filters yourself. Use our flexible Screener to mix valuation, growth, balance sheet and risk filters to suit your approach, or start with any of our curated Investing Ideas.

Babcock & Wilcox Enterprises (BW)

Babcock & Wilcox Enterprises provides power generation and emissions control equipment and services to utilities and industrial customers, including cross border projects between the US and Canada that could be sensitive to changes in tariffs on large industrial equipment. The company generated about US$834 million of revenue from its Babcock & Wilcox segment and has a market value of roughly US$1.5b.

Investors looking at Babcock & Wilcox are really weighing two forces. On one side, there is a large backlog and data center focused project pipeline that leans on proven boiler, steam turbine and decarbonization technologies, plus operations that could benefit if tariff risk on industrial kit eases between the US and Canada. On the other side, the company is coming off past losses, relies on external funding and has seen shareholder dilution, so execution on multi year projects and careful balance sheet management need to continue if that opportunity is going to translate into lasting value.

Babcock & Wilcox’s accelerating project pipeline and tariff sensitive cross border work could be masking a bigger story around backlog quality and funding risk. Get the full context in the 4 key rewards and 2 important warning signs (1 is major!)

Gentherm (THRM)

Gentherm is a thermal management specialist that supplies heated and cooled seats, steering wheels and other comfort systems to car makers, with a North American manufacturing footprint that links US demand to cross border trade and tariff policy. The business is still heavily tied to Automotive, which generated about US$1.5b of revenue in the latest period, while Medical contributed roughly US$49 million. With a market value around US$1.4b, Gentherm is now using that auto base to branch into medical and furniture comfort systems while managing tariff pass through and a footprint that leans on Mexican plants feeding US customers.

Investors looking at Gentherm today are really weighing two strands of the story. On one side, record recent revenue, growing content per vehicle, medical and furniture comfort products and a larger North American footprint after deals like IME and the planned Modine Performance Technologies merger give the company more ways to earn from comfort and thermal technology if auto volumes hold up. On the other side, current profit margins are still thin, management has to stay on top of tariff pass through from its Mexican plants into the US, and insider selling raises questions about how smooth that journey might be. If Gentherm continues to convert its higher revenue base into healthier margins while keeping tariff and funding risks in check, the gap between its current share price and what some analysts see as its fair value could become hard to ignore.

Gentherm’s growing comfort footprint across autos, medical and furniture might be masking a bigger shift in where the real earnings power sits. Get the full picture in the full narrative for Gentherm

Seeking Alternatives Before The Crowd

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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