Escalating talk of new 50% U.S. tariffs on about US$20b of Canadian imports has turned a long‑standing US$900b trade relationship into a source of real uncertainty for auto investors. Supply chains that rely heavily on Canada may feel the strain, while some U.S.-listed auto and parts stocks with lower Canada exposure could find themselves in a different position. This article walks through three such stocks from our screener and explains how this trade story might matter for your portfolio.

The three stocks covered below are just a sample from this idea. The full screen surfaced 2 more companies with equally interesting stories that are not included in the article. If you want to go straight to the source and identify your own highest conviction angles, head into the U.S.-Listed Auto and Parts Manufacturers with Low Canada Supply Exposure screener.

XPEL (XPEL)

Overview: XPEL is a U.S. based provider of protective films, coatings, and related services that help shield vehicle paint, windshields, and windows, as well as architectural glass. It reaches customers through installers, car dealers, online channels, and its own centers across North America, Europe, Asia, and other international markets.

Operations: XPEL generates about US$508 million of revenue almost entirely from auto parts and accessories, with the largest contributions from the United States at about US$280 million, followed by the EU, UK and Africa at about US$67 million, China at about US$52 million, and Canada at about US$50 million.

Market Cap: US$1.4b

For investors following the tariff story, XPEL offers a way to stay exposed to the U.S. auto ecosystem while limiting reliance on Canadian supply chains, since most revenue comes from protective films and accessories rather than cross border vehicle production. Analysts have highlighted the company’s manufacturing presence in San Antonio and China and its focus on higher margin products such as paint and windshield protection, while also noting that rising competition and regulatory pressure on plastics could affect pricing and costs. Management has publicly stressed that current tariff routes on China and potential retaliatory measures are a limited factor for its supply chain. The company still carries higher funding risk and a meaningful share of non cash earnings, which are key issues to weigh against its growth profile.

XPEL’s higher margin coatings story is only half the picture. The real question is how its funding risk and non cash earnings stack up against that profile. Weigh both angles in the 4 key rewards and 1 important major warning sign

Build your own high margin coatings shortlist

XPEL and the two other stocks in this piece all came out of the same screener, but the real edge is setting your own rules. Use our flexible Screener to blend filters like valuation, growth, balance sheet strength and risks into a watchlist that fits you, or start with any of our curated Investing Ideas.

Ford Motor (F)

Overview: Ford Motor is a global automaker that designs, manufactures, and sells Ford and Lincoln vehicles, from pickup trucks and SUVs to commercial vans, passenger cars, and electric vehicles, while also providing parts, accessories, software, and digital services. The company supports retail and commercial customers worldwide and runs its own financing arm to help dealers and consumers buy and lease vehicles.

Operations: Ford Motor generates revenue primarily from Ford Blue at about US$145.9b, Ford Pro at about US$64.8b, Ford Credit at about US$13.6b and Ford Model e at about US$5.7b, with unallocated amounts and eliminations reducing the total by about US$42.1b.

Market Cap: US$57.3b

Investors watching the Canada focused tariff story may find Ford Motor hard to ignore. The company is already leaning on a large U.S. manufacturing base, heavy exposure to higher margin trucks, SUVs and commercial fleets, and a growing Ford Pro services franchise. Together these could help it pick up share if Canadian built vehicles become less competitive. At the same time, Ford is still loss making, carries high funding risk, and faces ongoing pressure from the costly EV transition and possible supply chain disruption flagged by management. The mix of a low P/S, a sizeable dividend that is not well covered by earnings, and a push into EVs, software and even defense related projects means the risk reward balance is far from simple and may merit closer review.

Ford Motor’s push into EVs, software and defense projects sits alongside a low P/S and a sizable but thinly covered dividend. See how that mix stacks up in the analysis report for Ford Motor

Magna International (TSX:MG)

Overview: Magna International is a large global auto supplier that designs and builds everything from body structures and seating to complete vehicles, as well as key systems like powertrain, ADAS hardware, battery enclosures and driver monitoring for automakers across North America, Europe and Asia.

Operations: Magna International generates most of its revenue from Body Exteriors & Structures at about US$16.9b and Power & Vision at about US$15.7b. Seating Systems contributes about US$5.9b and Complete Vehicles about US$4.7b, while Corporate and Other reduces the total by about US$0.6b.

Market Cap: CA$25.9b

Investors looking at Magna International in light of the tariff story are getting a company with deep roots in Canada, but a footprint and customer mix that touches the full North American auto chain and a growing China business. Management has talked about having plants and programs across Canada, Mexico and the U.S., which can help adjust as production is rebalanced and as automakers look for more U.S. localized content. At the same time, Magna has recently faced lower margins, a large one off loss and relies heavily on external funding, so the appeal of its margin expansion plans, share buybacks and contract wins in areas like eDrives and driver monitoring sits alongside real execution and macro risk that needs closer scrutiny.

Magna International’s margin recovery story and contract wins in eDrives and driver monitoring could be masking something investors have not fully pieced together yet. See how the bigger picture fits in the 3 key rewards and 2 important warning signs

Seeking Fresh Alternatives Before Others Do

Fresh ideas can move fast. Some stay under the radar for now, while others build quiet breakout momentum before the crowd catches on. Explore these curated shortlists while they may still be less widely followed.

• Target companies where strong balance sheets back the story and help keep funding risk in check by running the list of solid balance sheet and fundamentals (51 results).
• Consider quality miners that could benefit if gold sentiment turns and supply tightens by checking the curated 30 elite gold producer stocks.
• Track shifting AI sentiment by focusing on companies already producing profits instead of burning cash with the hand picked 75 profitable AI stocks that aren't just burning cash.

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.