US Industrial Stocks That Could Gain From Reshoring After Canada Tariffs

When the US slaps 50% tariffs on US$20b of Canadian goods, the usual cross border flow of electronics and machinery suddenly looks less certain. That shock can ripple through profits or open the door for US producers that already focus on domestic production. This article walks through three US industrial stocks exposed to that tariff story, so you can judge where the potential opportunity or risk really sits.

The stocks covered below are just a starting sample, and the full screen surfaced 57 more US industrial and manufacturing companies with equally compelling reshoring and import-substitution narratives that are not covered in this article. To go straight to the broader opportunity set, use the US domestic industrials benefiting from reshoring and import substitution screener to identify, filter, and analyze the highest-conviction plays in this theme.

Astec Industries (ASTE)

Overview: Astec Industries is a US based manufacturer of heavy equipment for road building and construction, supplying asphalt and concrete plants, paving machines, crushers, screens, and related systems that can directly replace imported machinery for infrastructure and materials producers.

Operations: Astec generates about US$913.9 million from Infrastructure Solutions and US$676.8 million from Materials Solutions, with the United States contributing roughly US$1.25b of its revenue and Canada a smaller US$80.6 million.

Market Cap: US$1.0b

Astec Industries gives you direct exposure to US made roadbuilding and construction equipment at a time when tariffs on Canadian machinery could push buyers toward domestic suppliers. The company has a large US revenue base, a growing mix of higher margin parts and services, and a long history of paying and steadily lifting its dividend. This may appeal if you want exposure to infrastructure spending with some income. At the same time, debt levels, recent margin pressure and a premium P/E mean the bar for execution is high. If Astec can translate reshoring interest into sustained backlog and cleaner earnings, today’s setup could look very different in a few years.

Astec Industries could see reshoring interest accelerate, but the real story may lie in the balance between its US$1.25b domestic revenue base, margins and debt. Get the full picture in the Astec Industries financial health report

Build your own reshoring and infrastructure shortlist

Astec Industries and the two other stocks in this article came from a simple filter set, but the real value is tailoring the rules to your own approach. Use our flexible Screener to combine valuation, growth, balance sheet and dividend filters, or tap into our curated Investing Ideas for ready made starting points.

Franklin Electric (FELE)

Overview: Franklin Electric designs and manufactures water and fuel pumping systems, motors, controls, and related equipment, with a large US production footprint that directly fits the reshoring and import substitution theme as customers look for domestically produced industrial equipment instead of imported pumps. Its products support residential, agricultural, municipal, industrial, energy, and data center applications, giving it broad exposure to essential infrastructure that tends to need replacement and upgrade spending over time.

Operations: Franklin Electric generates about US$1.30b from Water Systems, US$730.8 million from Distribution, and US$306.6 million from Energy Systems, with a US$130.4 million intersegment offset.

Market Cap: US$4.6b

Franklin Electric may appeal to investors seeking exposure to US based industrial equipment that could benefit when tariffs make imported pumps less attractive. Management has noted that the recent tariff changes have been neutral to slightly positive for its “in region, for region” model. The company is focusing on higher value water technologies and acquisitions, and recently raised 2026 sales and earnings guidance after record Q2 adjusted EPS. This supports the quality narrative behind its premium P/E and analyst growth forecasts. At the same time, recent margin pressure, a sizeable one off loss, and reliance on external funding highlight the need for comfort with earnings quality and balance sheet risk if reshoring demand does not fully materialize.

Franklin Electric’s record Q2 adjusted EPS and raised 2026 guidance hint at a growth story that many investors may be underestimating. The real twist in that story sits inside the analyst forecasts for Franklin Electric

Littelfuse (LFUS)

Overview: Littelfuse designs and manufactures electronic components and subassemblies that protect, control, and sense electrical power across industrial, transportation, and electronics markets, making it a supplier into US factories, data centers, vehicles, and energy infrastructure. Its US manufacturing footprint and local for local approach mean Littelfuse can step in when tariffs make Canadian components more expensive for domestic industrial customers.

Operations: Littelfuse generates about US$1.47b of revenue from its Electronics segment, US$687.9 million from Transportation, and US$454.6 million from Industrial, with roughly US$909.4 million of sales in the United States and the rest split between China and other countries.

Market Cap: US$10.5b

Littelfuse may appeal to investors seeking exposure to the reshoring theme through the “picks and shovels” of industrial electrification. The company supplies fuses, power semiconductors, and protection gear into areas such as data centers, EVs, grid and energy storage, and recently reported Q2 2026 sales, margin expansion, and EPS growth. That performance, combined with a solid balance sheet and ongoing buybacks, provides capacity to invest in higher value products and US friendly production. On the other hand, Littelfuse is still working through profitability challenges in parts of its electronics business, has exposure to cyclical auto and industrial demand, and has seen meaningful insider selling. The company’s results will likely depend on its ability to continue improving margins and on how customers respond to tariff-driven shifts toward domestic components.

Littelfuse appears to be a quiet reshoring beneficiary, with essential components feeding into data centers, EVs and grid projects, while electronics profitability still lags. Get the full context in the analysis report for Littelfuse

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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