New tariffs of 10% to 12.5% on imports tied to forced labor allegations are reshaping the cost equation for U.S. businesses, and small caps that manufacture close to home could see their relative position change. With importers facing higher input costs and ongoing debate about how tariffs flow through to household budgets, investors are looking again at companies that lean on domestic supply. This article explains how the latest trade policy shift might affect U.S. small caps and highlights 3 stocks that appear positioned to respond to these tariff driven pressures.

Warby Parker (WRBY)

Overview: Warby Parker is a direct to consumer eyewear company that sells prescription glasses, sunglasses, contacts and vision services through a mix of U.S. and Canadian stores, its website and mobile apps, aiming to bundle eye exams, lenses and accessories into a single experience.

Operations: Warby Parker generates about US$890.6 million of revenue from holistic vision care, almost entirely in the United States.

Market Cap: US$3.0b

Warby Parker stands out because it earns all its revenue from holistic vision care in North America, so higher tariffs on imported eyewear could make its largely domestic model relatively more attractive as foreign rivals face extra costs and uncertainty. At the same time, the stock is priced richly versus traditional retailers and carries execution risk as it spends heavily on new stores and unproven AI powered eyewear partnerships with Google and Samsung. All this is occurring while margin expansion is still a work in progress. For investors, the mix of tariff driven tailwinds, recurring eye care demand and high expectations baked into the valuation raises a key question: how much of Warby Parker’s potential is already reflected in the share price, and what might the market be underestimating?

Tariff driven tailwinds, recurring eye care demand and rich expectations make Warby Parker a classic “is it already priced in” story, and the 3 key rewards and 1 important warning sign surfaces one twist many investors may be overlooking

National Vision Holdings (EYE)

Overview: National Vision Holdings is a U.S. based optical retailer that offers eye exams, eyeglasses, contact lenses and accessories through chains such as America's Best, Eyeglass World, Vista Optical and DiscountContacts.com, serving both value focused and insured customers.

Operations: National Vision Holdings generates about US$2.0b of revenue primarily from its Owned & Host segment, with a small contribution from Corporate/Other and a minor unallocated adjustment.

Market Cap: US$1.6b

National Vision Holdings operates at the intersection of essential healthcare and value retail, so tariffs on imported eyewear and services are particularly significant. With revenue almost entirely U.S. based and management highlighting steps to diversify sourcing and offset tariff costs, the company may face different competitive dynamics if import heavy rivals experience more pressure. At the same time, the situation involves risks, including competition from online eyewear sellers, heavy reliance on managed care and industry wide optometrist shortages, all of which influence how much value it can capture from store expansion and index inclusion. A key consideration is how these factors align with current expectations and how that shapes the overall investment case.

National Vision Holdings sits at the intersection of essential healthcare and value retail, yet the full story is not in the headlines. Put the current tariff backdrop, store growth ambitions and competitive pressures into context with the analysis report for National Vision Holdings.

L.B. Foster (FSTR)

Overview: L.B. Foster is an infrastructure supplier that makes and services rail products, precast concrete buildings and components, protective coatings and related solutions that support railroads, energy pipelines and public works projects in the U.S. and abroad.

Operations: L.B. Foster generates about US$326.5 million of revenue from its Rail, Technologies, and Services segment and around US$236.9 million from its Infrastructure Solutions segment.

Market Cap: US$446.7 million

L.B. Foster attracts attention because it sits at the heart of U.S. rail and infrastructure spending while sourcing mostly from domestic suppliers. New tariffs that pressure import heavy competitors could strengthen its position. At the same time, investors have to weigh a high P/E ratio against low but improving margins, exposure to government funded projects and a Rail segment that has faced softer demand. With new leadership roles taking effect in 2026 and analysts expecting faster earnings growth than revenue growth, the key question is whether L.B. Foster’s mix of tariff resilience, infrastructure exposure and execution risk justifies the current valuation or leaves room for a reset if expectations prove too optimistic.

Warby Parker and National Vision are not the only tariff story here, because L.B. Foster’s high P/E and tariff resilience could be masking a sharper earnings reset. Weigh that trade off through the 1 key reward and 1 important warning sign

The three stocks covered here are just the starting point. The full U.S. Small Cap Stocks screener surfaces 16 more U.S. small caps with similar tariff and domestic supply stories that could be just as compelling. Use Simply Wall St to identify, filter and analyze the specific catalysts, domestic manufacturing exposure and risk profiles that match your highest conviction ideas so you can focus quickly on the companies that fit your playbook.

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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.