MW From beer to consumer products, these names could benefit from Trump's tariffs

By James Rogers

President Donald Trump has made good on his campaign promise to launch a trade war on Canada, Mexico and China. These names could benefit.

From beer to manufacturing and consumer products, these stocks could benefit from President Donald Trump's trade war on Canada, Mexico and China.

On Tuesday, the U.S. will start collecting new 25% tariffs on goods imported from Mexico and Canada, as well as an additional 10% tariff on Chinese goods. The move has already sparked retaliatory Canadian tariffs on U.S. imports. The Liquor Control Board of Ontario also quickly moved to pull American liquor off its shelves starting Tuesday.

However, in a note released Monday, Bank of America analyst Bryan Spillane described Molson Coors Beverage Co. $(TAP)$ as a relative winner in the new tariffs climate "if Mexican imports become price disadvantaged vs U.S. beer brands." Bank of America also cited tobacco giant Altria Group Inc. $(MO)$ as a possible winner amid a potential crackdown on illicit products.

Related: Trump launches trade war on Canada, Mexico and China, provoking retaliation

Molson Coors shares are down 2.4% Monday, while Altria shares are up 0.2%.

Truist Securities raised its price target for bearings manufacturer RBC Bearings Inc. (RBC) to $410 from $351 Monday, citing a reacceleration of industrial growth, with tariffs and energy trends "potentially being additive," according to analyst Michael Ciarmoli. The analyst pointed to recent comments by RBC Bearings CEO Michael Hartnett about the company's ability to handle tariffs related to its three factories in Mexico. "The size of the impact would be easily absorbed and passed along in pricing," Ciarmoli wrote, adding: "Their commercial contract in Mexico has triggers that allow the contract to be renegotiated in the event of unforeseen government actions."

The analyst also noted that RBC Bearings' management supports strong tariffs on China given that its products are largely produced in the U.S. and that 90% of its sales are in the U.S. "As a result, RBC has minimal exposure to the negative impacts from tariffs relative to peers," he wrote. Truist reiterated its buy rating for RBC Bearings.

RBC Bearings share are up 1.3% Monday.

Related: Steel stocks among rare gainers after tariffs, but retaliation could take a bite

Reynolds Consumer Products Inc. $(REYN)$, maker of Hefty trash bags and Reynolds aluminum foil, is the most insulated among U.S. household and personal names, according to J.P. Morgan analyst Andrea Teixeira. "Its 'Made in the U.S.A.' branding benefits from increased 'nationalism,'" she wrote. "[Reynolds] is famous with customers for its 'Made in the U.S.A.' branding but also goes a long way in this instance with its 25 manufacturing plants in 12 states although we note that the company has one manufacturing facility in Canada." J.P. Morgan said it understands that the Canadian facility serves the company's Canadian business.

Reynolds Consumer shares are down 0.1% Monday.

Related: Trump's tariffs could hurt Temu and Shein. Here's which stocks stand to gain.

Canada-listed retailer Dollarama Inc. (CA:DOL) (DLMAF) may be a financial beneficiary of an "inflationary trade-down" as consumers seek cheaper products, TD Cowen analyst Brian Morrison said in a note Monday. The analyst noted that retailers Gildan Activewear Inc. (CA:GIL) $(GIL)$, Canadian Tire Corp. (CA:CTC) and Roots Corp. (CA:ROOT) (RROTF) also have limited direct exposure to tariffs.

-James Rogers

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February 03, 2025 10:31 ET (15:31 GMT)

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