Tariff threats between the US and Canada have shifted from background noise to a real risk, with new duties of up to 50% on about $20b of cross border trade now on the table. That puts logistics and customs brokers directly in the spotlight. For investors, this could reshape who handles the flow of goods. This article walks through three stocks exposed to the latest trade shock and explains why they may matter for a diversified portfolio.

The stocks in the article below are only a starting sample, and the full screen surfaced 12 more U.S. and Canadian logistics, freight forwarding and customs brokerage companies with equally compelling cross border trade stories that are not covered here. To go deeper, head straight into the North American Cross-Border Logistics and Customs Brokers screener to analyze, compare and identify the cross border logistics plays that line up best with your own view on tariff risk and opportunity.

Werner Enterprises (WERN)

Overview: Werner Enterprises is a large North American truckload carrier that moves consumer goods, food and other products across the United States, Canada and Mexico, while also offering logistics services that help shippers handle routing, documentation and compliance for cross border freight.

Operations: Werner generates about US$2.3b from Truckload Transportation Services and US$848 million from Werner Logistics, with smaller contributions from other activities, and most revenue comes from the United States with additional exposure to Mexico and Canada.

Market Cap: US$2.3b

Werner Enterprises provides direct exposure to the shifting flow of goods between the US, Canada and Mexico at a time when tariffs and customs rules are becoming more complex. Management has highlighted that about 10% of revenue is tied to Mexico cross border shipments, supported by long standing operations, a low age fleet and flexible options such as intermodal and temperature controlled capacity. At the same time, the company is working through unprofitability, higher debt reliance and rising costs for labor, insurance and equipment, which could pressure cash generation if conditions soften. For investors who want a carrier embedded in North American trade lanes, the mix of potential earnings recovery, cross border volume exposure and balance sheet risk may make Werner an option for further research.

Werner Enterprises sits at a crossroads of cross border demand and rising costs, and the missing piece is how resilient its fundamentals really are. Review the Werner Enterprises financial health report

Build your own cross border freight shortlist

Werner Enterprises and the other two logistics stocks here all came from refining a single Simply Wall St stock screen. Use our flexible Screener to mix filters like cross border exposure, balance sheet strength and risks, or tap into the ready made themes inside our Investing Ideas.

Canadian National Railway (TSX:CNR)

Overview: Canadian National Railway runs a large rail and intermodal network across Canada and the U.S., moving everything from grain and potash to consumer goods. It also provides customs brokerage, warehousing and other logistics services that help freight cross the border efficiently.

Operations: Canadian National Railway generates about CA$17.8b from Rail Operations, with roughly CA$12.5b of revenue from Canada and CA$5.3b from the United States.

Market Cap: CA$106.2b

Canadian National Railway provides exposure to cross border trade through an integrated rail and intermodal system that shippers already use for tariff aware routing between Canada, the U.S. and Mexico. The stock combines this theme with large scale infrastructure economics, a P/E below the broader transportation industry and a dividend around 2% that can add some income. At the same time, high leverage and policy risk around tariffs and USMCA reviews mean results are sensitive to both freight volumes and refinancing conditions, especially if trade disputes intensify. For investors who want a central cross border freight carrier with clear capital structure trade offs, Canadian National Railway may merit a closer look.

Canadian National Railway’s scale and cross border reach may be masking a more nuanced mix of tariff exposure and infrastructure strength. Read the 5 key rewards and 1 important warning sign to see how that trade off really looks.

Knight-Swift Transportation Holdings (KNX)

Overview: Knight-Swift Transportation Holdings is a large U.S. freight carrier that runs truckload, LTL, logistics and intermodal services, with cross border trucking and documentation support that help shippers move goods between the U.S. and Mexico as trade rules and tariff costs change.

Operations: Knight-Swift generates about US$5.0b from Truckload, US$1.5b from Less Than Truckload, US$568 million from Logistics and US$397 million from Intermodal, with the vast majority of its US$7.7b revenue earned in the United States and smaller contributions from other activities and internal eliminations.

Market Cap: US$11.8b

Knight-Swift provides exposure to North American freight volumes, with an added twist from its cross border and LTL focus at a time when tariffs and customs rules are back in the headlines. Analysts have highlighted efforts to improve earnings from thin 0.6% margins as LTL integration, cost controls and technology investments progress, although a recent US$71.9 million one-off loss illustrates the potential volatility in results. The company relies heavily on external borrowing, so changes in credit conditions or significant shifts in freight volumes may have a notable impact compared with asset-lighter peers. Investors who are interested in a large carrier that is active in complex cross border freight flows and pricing may find Knight-Swift worth further research.

Knight-Swift’s push to lift earnings from thin margins and absorb that US$71.9 million hit leaves a big question.

Seeking Fresh Alternatives Before Others Do

Fresh stock ideas do not stay quiet for long. By the time momentum is flying, the best entry points can be gone. Scan these curated sets now to review them at an earlier stage.

• Look for potential income anchors while yields are still holding up by checking the 10 dividend fortresses before they are fully evaluated by a wider audience.
• Review potential growth stories that larger investors may be ignoring through the 19 high quality undiscovered gems while they are still under the radar.
• Focus on balance sheet strength and staying power using the list of solid balance sheet and fundamentals (50 results) before market swings distinguish more resilient businesses from others.

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.