It's unclear if President Trump is just toying around with the threat of tariffs on Canada and Mexico. But it's not fun and games for some large U.S. companies in the S&P 500.
Eighteen S&P 500 stocks, including Costco Wholesale, Lululemon Athletica and Charles River Laboratories, disclosed the percentage of revenue from Canada and Mexico as it's material, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
The tariffs are paused for 30 days. But they're sizable enough that the risk still looms large.
"The large 25% tariffs on Canada and Mexico clearly caught investors off guard as risk assets are trading lower given the implications for a broader, global trade war, higher inflation and lower potential GDP," said Jim Smigiel, chief investment officer at SEI.
Most At Risk: Costco
Issaquah, Wash.-based big-box retailer Costco is most closely linked to Canada. It disclosed getting nearly 14% of its revenue from Canada in the past 12 months. That's marginally higher than the 13.4% of revenue from Canada reported by Lululemon.
Up until now, Costco has been a solid stock. It sports an RS Rating of 85 and EPS Rating of 85, too. Analysts think earnings will rise 13% in 2025.
Lululemon has been a good performer, too. It holds an RS Rating of 88 and EPS Rating of 95. Analysts think its profit will rise 12% in 2025.
But it's not just consumer stocks at risk. Also disclosing exposure to Canada and Mexico are health care, industrial, energy, materials, real estate and tech companies.
"There is concern that broad-based tariffs, as opposed to targeted ones under Trump's first Presidency could raise costs for consumers," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management.
S&P 500 Stocks Most Exposed To Canada, Mexico
% of revenue last 12 months
| Company | Ticker | Canada And Mexico % Of Revenue | Sector |
|---|---|---|---|
| Costco Wholesale | COST | 13.7% | Consumer Staples |
| Lululemon Athletica | LULU | 13.4 | Consumer Discretionary |
| Charles River Laboratories | CRL | 12.1 | Health Care |
| Welltower | WELL | 7.58 | Real Estate |
| Deere | DE | 7.54 | Industrials |
| ConocoPhillips | COP | 6.23 | Energy |
| Quanta Services | PWR | 5.17 | Industrials |
| Zoetis | ZTS | 4.87 | Health Care |
| Equifax | EFX | 4.74 | Industrials |
| Mosaic | MOS | 4.72 | Materials |
| J.M. Smucker | SJM | 4.42 | Consumer Staples |
| LyondellBasell Industries | LYB | 4.32 | Materials |
| IDEXX Laboratories | IDXX | 3.94 | Health Care |
| Ecolab | ECL | 2.99 | Materials |
| Jacobs Solutions | J | 2.28 | Industrials |
| Meta Platforms | META | 2.11 | Communication Services |
| EPAM Systems | EPAM | 1.89 | Information Technology |
| Host Hotels & Resorts | HST | 1.31 | Real Estate |
Sources: S&P Global Market Intelligence, IBD
Follow Matt Krantz on X (Twitter) @mattkrantz
