New US Section 301 tariffs are reshaping global supply chains and changing how cross border costs hit company profit margins. For investors, this is less about headline politics and more about which stocks sit on the right or wrong side of these new trade rules. Some businesses gain breathing room because key imports are exempt. Others face rising input costs and pressure on earnings. This article walks through three stocks that are exposed to the latest tariff moves, with one potentially benefiting and two that could be more at risk, to help you think through where to focus your next round of research.

Li Auto (LI)

Overview: Li Auto is a Beijing based premium smart electric vehicle company that designs, builds and sells multi purpose and sport utility EVs, while also running its own sales, after sales and technology services across online and offline channels in China.

Operations: Li Auto generates all of its CN¥109.4b revenue from auto manufacturing in the People's Republic of China.

Market Cap: US$13.3b

Li Auto sits at the center of China’s competitive EV push, yet the picture for investors is far from straightforward. The company is investing in pure battery models, intelligent driving technology and its own fast charging network, while still carrying losses and facing pressure on deliveries and vehicle margins. New U.S. Section 301 tariffs on Chinese EV exports add another layer of uncertainty for any future overseas growth. At the same time, analysts model revenue and earnings improvement and see upside from current prices, even though recent quarters show revenue decline and a net loss. If you are weighing whether the risk of higher spending and trade barriers is worth the potential payoff, Li Auto warrants a closer and cautious look.

Li Auto’s revenue pressure, rising spending and new tariff risks suggest the real story may be less about upside and more about what the market is missing on expectations. Before you decide, review the analyst forecasts for Li Auto

Caterpillar (CAT)

Overview: Caterpillar is a US based industrial company that manufactures and sells heavy construction and mining equipment, as well as engines, turbines and locomotives used in infrastructure, energy and transportation projects around the world.

Operations: Caterpillar generates the bulk of its revenue from Machinery, Power & Energy activities, led by Power & Energy at about US$33.4b and Construction Industries at about US$27.0b, with Resource Industries at about US$12.6b and Financial Products adding about US$4.3b.

Market Cap: US$372.7b

Caterpillar is exposed to long term infrastructure and AI data center demand, with a record backlog and growing Power & Energy sales. However, the new Section 301 tariffs introduce uncertainty over how much of that potential will reach shareholders. Management already expects multi billion dollar tariff costs and has indicated that margins could sit near the bottom of target ranges, as cost controls and pricing only partly offset the impact. Combined with high leverage, a rich P/E multiple and recent earnings pressure, this creates a situation where strong themes and headlines may mask how limited the cushion could be if trade friction, regulation or weaker pricing become more challenging than currently anticipated.

Caterpillar’s strong themes and rich P/E may be masking how exposed earnings are to ongoing tariff costs and leverage. Before assuming the backlog tells the whole story, review the 2 key rewards and 1 important warning sign

Boeing (BA)

Overview: Boeing is a US based aerospace group that designs, manufactures and services commercial jetliners, military aircraft, space systems and related support services for airlines and governments worldwide.

Operations: Boeing generates about US$43.4b from Commercial Airplanes, US$29.4b from Defense, Space & Security and US$21.3b from Global Services, with a small negative contribution from unallocated items.

Market Cap: US$174.6b

Boeing stands out in the tariff story because aviation components are exempt, which helps protect its input costs while many foreign rivals face higher export hurdles. That matters when you combine a record commercial backlog and growing services revenue with high debt, an elevated P/E and ongoing certification, quality and cash flow risks. The company is working through production ramps, regulatory milestones and supply chain clean up at the same time analysts are baking in expectations for stronger free cash flow and higher earnings over time. If you are looking for a globally important manufacturer that could be influenced by trade policy while still carrying meaningful execution risk, Boeing may warrant a closer look beyond the headlines and headline multiples.

Boeing’s tariff shield and record backlog could be masking a very different risk reward profile than headlines suggest. Get the full context from the 4 key rewards and 2 important warning signs (1 is major!)

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Seeking Fresh Alternatives Beyond Tariff Stories

New tariff headlines move fast and opportunities can get away while attention stays on Li Auto, Caterpillar and Boeing. Spot fresh stock ideas before momentum is fully caught and consider acting before the crowd.

• Identify companies with relatively strong balance sheets that may help support performance when sentiment weakens by checking the list of solid balance sheet and fundamentals (45 results)
• Explore potential income opportunities while certain yields may still be less widely followed by scanning the 9 dividend fortresses
• Review companies related to infrastructure and automation developments by using the curated list in the 36 robotics and automation stocks

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.