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The Market Online
6 hours ago
- Business
- The Market Online
4 Canadian stocks built to bounce back from US tariffs
If we consider all tariffs placed on Canadian imports into the United States since the initial wave in March 2025, we find steel and aluminum (50%), automotive (25%) and copper (50%) to be the industries most at risk, resulting in widespread declines in related stocks and making it high time to put our active investor hats on in search of compelling opportunities. This content has been prepared in collaboration with Alcoa Corp., Champion Iron Ltd., Stellantis N.V. and Teck Resources Ltd., and is intended for informational purposes only. A quick Google for top Canadian stocks in each industry quickly turned up dozens of names – sourced from Trading View, Investopedia, Mining Technology and – freeing us up to dive into income statements and balance sheets for assurances, including proven management, growing revenue and strong profitability, in support of businesses likely to create shareholder value, even in the event of a prolonged trade war. Alcoa A convincing name to test with your due diligence is Alcoa, market capitalization US$8.02 billion, a global provider of bauxite, alumina and aluminum products with operations spread across Australia, Brazil, Spain and Canada, including three aluminum smelters in Quebec with combined production of nearly one million tons per year. The company managed to post positive net income in each of the past five quarters ending Q2 2025, ending the latter with alumina production of 2.4 million metric tons and aluminum production of 572,000 tons, each in line with year-over-year figures, minimizing tariff losses by redirecting product to non-US customers. With the price of aluminum rebounding in Q2 (see slide 15 of Alcoa's Q2 investor presentation), long-term demand tailwinds in place through the end of the decade (slide 13) and US$1.5 billion in cash and cash-flowing geographically diversified operations to support growth initiatives, the company appears to be well equipped to absorb the US$90 million in unfavorable impacts because of US tariffs expected in Q3, equal to those incurred in Q2, as it taps its global client base to source more non-US deals to re-direct supply. Alcoa stock (NYSE:AA) was down by as much as 32.12 per cent following the announcement of US tariffs on Canadian steel and aluminum imports on March 12, but has since recovered to a mere 4.33 per cent loss, maintaining a 149.49 per cent gain since 2020. Champion Iron Moving into the steel sector, I came across Champion Iron, market capitalization C$2.35 billion, which operates the Bloom Lake mining complex in Quebec, composed of an open-pit mine and two concentration plants that produce 66.2 per cent iron ore concentrate from one of the highest-purity resources globally. Ongoing upgrades to 69 per cent purity in December 2025 position the company to add to its products' premium relative to the Platts IODEX – a popular iron ore benchmark – as it continues to build upon its global customer track record spanning China, Japan, the Middle East, Europe, South Korea and India, as well as Canada, with no direct sales to the United States. Champion Iron's secondary asset, the Kamistiatusset mining properties only 21 kilometres to the southeast, are expected to deliver 9 million tons of iron per year grading above 67.5 per cent, and are currently under joint venture with Nippon Steel and Sojitz with eyes on a definitive feasibility study. Champion's global cachet has allowed it to achieve revenue growth in four out of the past five years, growing from C$1.281 billion in 2021 to C$1.6 billion in 2025, all while generating consistently positive annual net income in the hundreds of millions, whose variability reflects inflation, US tariffs and iron price volatility (see slide 10 of Champion's Q4 2025 investor presentation). Chief executive officer David Cataford expressed confidence is the company's near-term future, stating in the Q4 F2025 news release that, 'As global economies face uncertainties with rising trade tensions, our company benefits from robust financial liquidities and diversified global partners, enabling us to diligently advance our growth initiatives.' Propelled by increased cash flow from purity upgrades at Bloom Lake, near-term development at Kami, as well as a portfolio of prospective exploration projects, investors should expect more upside from earnings and the drill bit to carry this Canadian-listed stock higher. Champion Iron stock (TSX:CIA) last traded at C$4.54 and was down by as much as 23.75 per cent since US steel and aluminum tariffs first came to light in March. The loss currently stands at 0.87 per cent, with investors harboring a 20.04 per cent loss year-over-year and a 73.66 per cent gain since 2020. Stellantis Moving on to the auto sector, we have Stellantis, market capitalization US$26.53 billion, a global producer with more than 100 years in business and a portfolio of household names, including Chrysler, Dodge//SRT, Jeep, Ram, Alfa Romeo, FIAT and Maserati. With operations in more than 30 countries and customers in more than 130 markets, Stellantis has reached efficiencies reserved for only the world's most diversified companies, growing revenue from a pandemic low of €86.6 billion in 2020 to €189.5 billion in 2023, before slipping back to €156.8 billion in 2024 driven by lower volume, increased sales incentives and foreign exchange headwinds. Net income followed a parallel trajectory, rising from €29 million in 2020 to €18.5 billion in 2023, falling to €5.4 billion in 2024 as high inflation ate into demand. Stellantis decided to suspend 2025 guidance on account of US tariffs, but is estimating a C$3.7 billion loss combined across Q1 and Q2, according to a CBC report, which will likely spook investors and send the stock (NYSE:STLA) tumbling further, compounding its more than 50 per cent loss year-over-year. That said, the company's long-tenured management team ended 2024 with US$34.1 billion in cash and equivalents, enough to buy itself time to restructure as necessary, and is actively leveraging a leadership position as the largest producer of US-assembled vehicles (58%), with over half of adjusted operating income stemming from outside of North America (2023-2024) – as per slide 13 of Stellantis' Q1 presentation – to put itself on the path to growing profits once again. While hindered by the current macroeconomic climate, Stellantis remains committed to its Dare Forward initiative, announced in 2022, to maximize shareholder value by transitioning into a sustainable mobility tech company, eyeing carbon neutrality by 2038, and benefits from a balance sheet and income statements robust enough to make meaningful progress and improve market sentiment. Teck Resources Wrapping things up with copper, we turn our attention to Teck Resources, market capitalization C$26.27 billion, a top 10 copper producer and the world's largest zinc producer, delivering more than 440,000 tons and 850,000 tons in 2024, respectively. The company operates the Highland Mine, the largest copper mine in Canada, in addition to projects in Peru, Chile and the United States. Teck delivered variable revenue over the past five years, posting C$8.9 billion in 2020, rising to C$17.3 billion in 2022 and falling to just over C$9 billion in 2024. Net income told a similar story, reaching a five-year high of C$3.3 billion in 2022 and falling to C$406 million in 2024, reflecting commodity price volatility, as well as the sale of the company's steelmaking coal business in 2024 in a bid to reposition itself as a critical metals company. Teck is on track to almost triple copper production from 296,000 tons in 2023 to about 800,000 tons by 2030 – according to slide 12 of its latest investor presentation – with copper EBITDA margins expected to grow from 33 per cent in 2023 to 53 per cent in 2025, supported by a zinc business putting up impressive gross profits before depreciation and amortization in Q4 2024 and Q1 2025, diligently increasing the operational ability to create value in strong and weak demand environments. Management's envisioned trajectory will only be facilitated by Teck's minimal exposure to the US, having re-routed its zinc from the US to Asia to avoid earlier blanket tariffs across all Canadian imports. Teck stock (TSX:TECK.A) has been flat since Trump announced the potential 50 per cent tariff on Canadian copper on July 8, but remains down by more than 17 per cent year-over-year, despite a profitable track record, reflected in a 210 per cent return since 2020, earning conviction in its plans for future growth. Parting proviso Even though US tariffs may result in short-term volatility, presenting you with attractive entry points for stocks active in affected industries, share prices will always reflect value creation after the noise has cleared, leaving the cold, hard numbers of balance sheets and income statements in their wake. The longer a company has been growing profitably, the deeper the trust a management team deserves to grow your investment through the economic cycle, maneuvering through uncertainty towards greater efficiency and scale. All this is to say, take care to differentiate between fun-money or taking a flyer, if it's an itch you need to scratch – with a risk-adjusted percentage of your portfolio – and investing, where due diligence should be convincing enough to allow you to sleep well at night, no matter the temporary blips in the stock market's proven history of life-enhancing returns. Join the discussion: Find out what investors are saying about these tariff-resilient stocks on the Alcoa Corp., Champion Iron Ltd., Stellantis N.V. and Teck Resources Ltd. Bullboards, and check out the rest of Stockhouse's stock forums and message boards. Stockhouse does not provide investment advice or recommendations. All investment decisions should be made based on your own research and consultation with a registered investment professional. The issuer is solely responsible for the accuracy of the information contained herein. For full disclaimer information, please click here.
Mint
4 days ago
- Business
- Mint
Alcoa CEO Says Trump Tariffs Force a Pause for Canada Growth Projects
(Bloomberg) -- Alcoa Corp., the storied US metals producer, is feeling the pinch of President Donald Trump's tariffs and has been forced to pause work on all its growth projects underway in Canada. If the levies stay in place, Chief Executive Officer Bill Oplinger warns that the American manufacturer may need to turn to the Canadian government for help. For now, Oplinger said he's waiting until Aug. 1 — the negotiation deadline for a new economic and security deal between Canada and the US — to decide whether Alcoa will push for assistance from the Canadian government, financial or otherwise, to support the aluminum operations the company has in Quebec. 'The profitability of Quebec is severely impacted,' Oplinger said in a Friday interview. 'The longer this goes, the more damage it will do to the competitiveness of the Quebec assets. And the Canadian government understands that.' Alcoa's challenges show how US levies on aluminum, aimed at boosting American manufacturing, are now hurting the largest US producer of the metal used in everything from soda cans to cars. While Pittsburgh-based Alcoa has a lot of domestic production, it also depends on operations in Canada to meet demand. The company owns three smelting and casting facilities in Quebec that largely feed American customers. The firm is typically one of the largest suppliers to the US, but is now rerouting cargoes because of the levies. 'We're doing everything we possibly can to ship tons that are normally destined for the US to other parts of the world,' Oplinger said. Oplinger's comments follow an earnings report on Wednesday that revealed Alcoa paid an additional $115 million in tariff-related costs in the second quarter. The company could look into lobbying both Canada's federal government and the Quebec government for support if tariffs stay in place. The firm is among many metal producers navigating trade tumult after the Trump administration raised US import tariffs on steel and aluminum — first to 25% in March, and then to 50% in June. Rio Tinto Plc said Wednesday that its Canadian-made aluminum generated costs of more than $300 million in the first half due to tariffs. The company also told local media in June that it implemented a hiring freeze at smelters across Quebec. Alcoa's executives are now 'looking very hard at capital investments' in Quebec, Oplinger said. 'The plans we had for growth projects in Quebec are on hold until we have some resolution on the tariffs.' Nearly 40% of Alcoa's metal produced in Quebec can be diverted to non-US customers, mostly in Europe and elsewhere in Canada, though weakened demand overseas has hampered the prospects for producers to reroute shipments entirely. The company has warned it could face further tariff costs if Trump follows through on threats to place 50% tariffs on Brazil, where Alcoa sources alumina to feed its US plants. Oplinger said he's now deciding whether to preemptively source alumina outside of Brazil in anticipation of those prospective levies. The Alcoa executive was appointed CEO in 2023 after serving as the firm's Chief Operations Officer and, previously, Chief Financial Officer. 'I've been with Alcoa for over 25 years and I think this is easily the most extreme trade uncertainty we've seen,' he said on Friday. --With assistance from Mathieu Dion. More stories like this are available on
Yahoo
5 days ago
- Business
- Yahoo
Alcoa Says Trump Tariff Added $115 Million in Aluminum Costs
(Bloomberg) -- Alcoa Corp., the largest US aluminum producer, said tariffs on imports from Canada cost it $115 million in the second quarter, showing how US President Donald Trump's trade agenda has affected the industry. The Dutch Intersection Is Coming to Save Your Life Advocates Fear US Agents Are Using 'Wellness Checks' on Children as a Prelude to Arrests LA Homelessness Drops for Second Year Manhattan, Chicago Murder Rates Drop in 2025, Officials Say The company redirected Canadian produced aluminum to customers outside the US to mitigate additional tariff costs, it said Wednesday while reporting earnings that beat analyst estimates. Alcoa shares rose as much as 6.4% Thursday in New York, the biggest intraday increase since June 26. Metal producers are navigating the trade tumult Trump created after raising import tariffs on steel and aluminum, first to 25% in March and then to 50% in June, in an effort to revive domestic production. Alcoa's latest toll from tariffs is about six times more than in the first quarter when the Pittsburgh-based firm said the levies, which were then 25%, had cost it an additional $20 million. Mining giant Rio Tinto Group also revealed Wednesday that its Canada-made aluminum generated costs of more than $300 million in the first half due to the tariffs. Alcoa has had extensive conversations with administrations on both sides of the border, including directly with Trump, Alcoa Chief Executive Officer William Oplinger said on a call following the earnings report. Oplinger has repeatedly warned US customers will bear the costs of tariffs on aluminum producers. 'While we're not particularly thrilled with the tariffs,' he said, 'our customers are paying significantly higher for aluminum in the United States than anywhere else in the world.' (Updates with share price) How Starbucks' CEO Plans to Tame the Rush-Hour Free-for-All What the Tough Job Market for New College Grads Says About the Economy Forget DOGE. Musk Is Suddenly All In on AI The Quest for a Hangover-Free Buzz How Hims Became the King of Knockoff Weight-Loss Drugs ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
16-04-2025
- Business
- Bloomberg
Alcoa Reports $20 Million Tariff Hit on Imports From Canada
Alcoa Corp., the largest US aluminum producer, said President Donald Trump's 25% tariff on metal imports has cost the company $20 million since the duties went into effect. The Pittsburgh-based company incurred the costs on imports of aluminum from Canada, its largest metal-producing region. The disclosure is one of the first indications that US companies are being adversely affected by the Trump administration's trade war.
Yahoo
11-02-2025
- Business
- Yahoo
Trump Sets 25% Tariffs on Steel, Aluminum as Trade War Grows
(Bloomberg) -- President Donald Trump ordered a 25% tariff on steel and aluminum imports, escalating his efforts to protect politically important US industries with levies hitting some of the country's closest allies. Nice Airport, If You Can Get to It: No Subway, No Highway, No Bridge Sin puente y sin metro: el nuevo aeropuerto de Lima es una debacle The Forgotten French Architect Who Rebuilt Marseille In New Orleans, an Aging Dome Tries to Stay Super How London's Taxi Drivers Navigate the City Without GPS The tariffs will apply widely to all US imports of steel and aluminum, including from Canada and Mexico, the country's top two foreign suppliers of the metals. The levies, which also include finished metal products, are meant to crack down on what administration officials said were efforts by countries like Russia and China to circumvent existing duties. Trump cast the effort as one which would help bolster domestic production and bring more jobs to the US, and warned that the rate on metal tariffs 'may go higher.' The new rates will go into effect on March 4, a US official said. 'Essentially, we're putting on a 25% tariff, without exception, on all aluminum and all steel, and it's going to mean a lot of businesses are going to be opening in the United States,' Trump said Monday as he signed the measures in the Oval Office. While the measures unveiled Monday did not include exemptions for trading partners — and US officials said they were wary of granting any leeway — Trump indicated that he may consider a break for Australia, crediting the country's import of US-made aircraft. After-hours movement was muted in shares of the major American steel and aluminum producers. Alcoa Corp., the largest American aluminum producer, gained about 1%, while Nucor Corp., the largest US steelmaker, rose 0.5%. Trump's move comes on top of new 10% tariffs on goods from China; 25% levies on Canada and Mexico that are currently paused; and his plan to slap reciprocal duties on other nations. The president also reiterated his threat to levy reciprocal tariffs against countries that have levies on US imports, saying those could be announced over the next two days. And he said the administration will be looking at levies on cars and semiconductors, as well as other potential sectors. Escalating Tariffs The metal tariffs the president approved Monday are the broadest-reaching action yet by Trump to confront US trade deficits and harness international commerce as a source of revenue. Trump authorized the new tariffs under Section 232 of the Trade Expansion Act, which gives the president broad authority to impose trade restrictions on domestic security grounds. It is the same power that Trump used to levy steel and aluminum tariffs in 2018, during his first term. With his proclamations Monday, he is effectively reviving and expanding those tariffs. The US saw a bump in manufacturing employment fueled by Trump's tax cuts early in his last administration. But things started to change after he introduced the steel and aluminum tariffs in March 2018 and also launched a trade war against China. In 2019, the first full year after Trump's initial steel and aluminum tariffs went into effect, the US actually lost manufacturing jobs and the broader factory sector entered a slump with industrial production falling. A senior administration official said the new action was necessary because steel and aluminum exporters abused exceptions under the previous policy, which hurt US producers. The official detailed the moves on a call with reporters earlier Monday on condition of anonymity. Trump's decision to include downstream finished products is a significant move that will have broad-reaching price impacts on a massive swath of US consumers. Whereas Trump's 2018 tariffs focused mostly on raw steelmaking and primary aluminum production, these new tariffs will include things like extrusions and slabs that are turned into value-added products needed in everything from automobiles to window frames and skyscrapers. The move would fulfill what the most extreme trade protectionists have sought for years. Trump will also direct US Customs and Border Protection to step up oversight to prevent foreign countries from misclassifying steel products to evade tariffs, the officials said. The effort reprises a strategy Trump adopted during his first term, when he imposed tariffs of 25% on steel and 10% on aluminum that prompted a decline in US imports of the metals. The levies sparked retaliation from US trading partners, including the European Union, which imposed tariffs on iconic American goods, from Harley-Davidson Inc. motorcycles to Levi Strauss & Co. jeans. Trump ended up granting duty-free status to several major exporters, including Canada, Mexico and Brazil. Former President Joe Biden expanded those exemptions. It's unclear how countries might respond to Trump's latest decision on metals, though new retaliatory Chinese levies over the 10% tariff on goods took effect on Monday. Why Trump Wants Higher Tariffs on Steel and Aluminum: QuickTake Opponents overseas say the widespread tariffs violate global trading rules and are an affront to US allies abroad. And economists warn Trump's tariffs risk raising costs in the US for everything from groceries to gasoline — potentially stoking the very inflationary pressures the president campaigned on quelling. Administration officials counter, however, that the levies are part of a broader economic strategy — including extended tax cuts and expanded domestic energy production — that will help lower costs overall. The US is heavily reliant on aluminum imports to meet domestic demand, with many of those supplies coming from Canada, the United Arab Emirates and China. Net imports of aluminum reached more than 80% in 2023, according to Morgan Stanley. Although foreign steel represents a smaller portion of overall consumption, the aerospace, auto manufacturing and energy sectors rely on imported specialty grades. The move also comes before a visit from Indian Prime Minister Narendra Modi this week. India is a supplier of steel to the US and the Indian Steel Association, a lobbying group, has urged the government to take diplomatic action to secure exemptions from US trade restrictions. Trump made reviving US steelmaking a signature aim of his agenda; it also was a potent political promise in Rust Belt states such as Ohio and Pennsylvania that have seen an erosion of industrial manufacturing jobs. While the United Steelworkers union, which is influential in such states, endorsed his general-election rival — former Vice President Kamala Harris — many local chapters backed Trump. On Friday, Trump declared he would continue blocking a bid by Japan's Nippon Steel Corp. to take over United States Steel Corp. — a deal that is also opposed by the steelworkers union. Instead, the president said after a meeting with Japanese Prime Minister Shigeru Ishiba that Nippon Steel might make a significant investment in the US steelmaker, allowing it to remain an American company with significant foreign backing. --With assistance from Joe Deaux and Akayla Gardner. (Updates with additional background, in tenth paragraph.) Trump's Tariffs Make Currency Trading Cool Again After Years of Decline Trump Promised to Run the Economy Hotter. His Shock and Awe May Have a Chilling Effect The Reason Why This Super Bowl Has So Many Conspiracy Theories Believing in Aliens Derailed This Internet Pioneer's Career. Now He's Facing Prison Business Schools Confront Trump Immigration Policies ©2025 Bloomberg L.P.
