Toronto, Ontario -- This week's Tuesday Ticker takes a look at the impact recently announced tariffs on metals entering the United States has had on various aftermarket businesses based north and south of the border.
On May 30, 2025, U.S. President Donald Trump doubled tariffs on steel and aluminum imports from 25 percent to 50 percent. The move is intended to bolster domestic metal production and shield U.S. mineral extraction businesses from foreign competition. Critics say it will raise the prices on all steel and aluminum products sold or manufactured in the U.S.
While the tariffs won't become policy until June 6, it has already spurred on declines on both Canadian and U.S. stock markets. Since the announcement, Canada's TSX-SNP composite index has fallen by 0.81 percent and the U.S.'s Dow Jones industrial average by 0.5 percent.
Though neither country is ahead as a result of the latest tariff announcement, some companies have been able to make gains as a result of the chaos it is causing on the markets. Others, however, have faced declines.
Tough times for the Tennant Company
The Tennant Co., a Minnesota-based cleaning equipment provider, is among the American aftermarket-adjacent businesses to have seen the largest declines following the announcement of new steel tariffs. Between May 29 and June 2, its stock price fell from US $93.90 USD ($127.44) to US$73.23 ($99.38), a 22 percent drop.
The tariffs aren't the only factor responsible for the company's poor performance over the last week. It released a weaker-than-expected Q1 earnings report that disappointed a 6.8 percent year-over-year decline.
Despite this, analysts agree the sell-off of shares was, in part, prompted by investor concerns about the macroeconomic headwinds faced by the business, including the tariff regime.
Uniting behind Uni-Select
At least one major Canadian collision repair equipment provider has seen a stock market surge in the past few days. Quebec-based Uni-Select saw its shares rise from $48.75 to $49.60, or 1.74 percent, in the days following the steel tariff announcement.
It isn't clear these gains have come because or in spite of the Trump Administration's economic policies. In recent months, however, the company has expanded its distribution network and its relationships with independent wholesalers. It seems likely investors are drawing some comfort from the company's proven ability to manage supply chain disruptions.
Magna moves forward
Ontario-based Magna International stock made modest gains in the days following Trump's announcement, with its stock rising from $67.50 on May 29 to $68.20, or about a percent, on June 2.
There are two key reasons for investors' optimism. First, as a Canadian domiciled company, Magna will not need to pay tariffs on the steel used in products sold outside of the U.S. Second, the Canadian government recently announced it would be making enormous investments in Canada's military vehicles and would prioritize Canadian businesses in contract negotiations.
LKQ slips backward
The Tennessee-based LKQ Corp. fared poorly in the days after Trump's announcement. Its share price sank from about $40.77 USD ($55.36) on May 29 to $39.80 USD ($54.01 CAD) on June 2, a 2.38 percent decline.
As a U.S. business that conducts manufacturing operations on both sides of the border, LKQ will be forced to pay tariffs on the steel used in its manufacturing activities in the U.S.
Battering the Boyd Group
The Manitoba-based Boyd Group responded poorly to the prospect of a worsening trade war with the U.S. Boyd Group Services Inc. Between May 29 and June 2, its price fell from $246.50 to $241.30, or about 2.11 percent.
As North America's largest operator of non-franchised collision repair centres, the company holds significant assets on both sides of the border.
Steadiness at Snap-on
Smaller declines were registered at the Wisconsin-based Snap-On Inc., a company best-known as a manufacturer of auto repair power tools, diagnostic equipment and maintenance equipment.
The company's stock prices declined from US$316.95 ($430) to US$316.35 ($429.20), or about 0.19 percent. Snap-on's performance actually beaten the industrial average despite its exposure to the automotive sector.
