As US tariffs threaten Japanese exports, manufacturers are looking to relocate production to tariff-friendly countries like Mexico and Canada. This carefully selected group of stocks represents companies positioned to benefit from this major supply chain realignment.
Published on June 30
These companies are at the frontlines of a major global manufacturing realignment. As Japanese firms respond to tariff pressure, billions in investment could flow to these North American beneficiaries.
Mexico is becoming the new manufacturing hub for Japanese auto and machinery companies seeking tariff-free access to US markets. Companies with established operations there are perfectly positioned to capitalize.
As Japanese manufacturers relocate, they'll need everything from warehouses to rail transport to raw materials. This carefully selected group represents the companies most likely to win this new business.
US tariff pressure on Japanese automotive and machinery exports is creating a strategic opportunity. As manufacturers relocate production to avoid these tariffs, companies providing industrial facilities, logistics networks, and manufacturing support in Mexico and Canada stand to gain significant business.
This collection focuses on North American companies across industrial real estate, rail transportation, airports, auto parts, and raw materials. These firms are uniquely positioned to benefit from Japanese companies establishing new manufacturing bases to maintain access to US markets.
These companies were selected because they offer direct exposure to the supply chain shift. They include strategically located transportation networks, industrial suppliers, and logistics providers with established operations in the regions most likely to attract relocated Japanese manufacturing.
Market-capitalisation breakdown for the basket, showing concentration among the largest holdings that anchor overall size and risk profile.
MGA: $13.02B
UNP: $134.37B
XPO: $16.02B
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MAGNA INTERNATIONAL INC
MGA
Current Price
$71.33
As a leading Canadian auto parts supplier with extensive operations in Mexico, it's perfectly positioned to win contracts from Japanese automakers rel...
As a leading Canadian auto parts supplier with extensive operations in Mexico, it's perfectly positioned to win contracts from Japanese automakers relocating production to North America.
CANADIAN PAC KANS CITY LTD
CP
Current Price
$94.87
Its unique single-line rail network connecting Canada, the U.S., and Mexico is ideally suited to handle new trade flows from Japanese supply chains mo...
Its unique single-line rail network connecting Canada, the U.S., and Mexico is ideally suited to handle new trade flows from Japanese supply chains moving to North America.
Union Pacific
UNP
Current Price
$301.55
As a primary rail link between Mexico and the U.S., it would be a direct beneficiary of increased cross-border trade from nearshored Japanese manufact...
As a primary rail link between Mexico and the U.S., it would be a direct beneficiary of increased cross-border trade from nearshored Japanese manufacturing.
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Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.
If you invested across these assets:
In 12 months it might be worth:
+141.11%
On average, analysts expect assets in this group to grow 141.11% over the next year.
12 of 15 assets in this group are rated Buy by professional analysts.
