--- title: "Auto Parts Stocks For Investors Seeking Shelter From US Canada Tariff Risk" type: "News" locale: "en" url: "https://longbridge.com/en/news/296173415.md" description: "Amidst U.S. threats of up to 50% tariffs on Canadian exports, investors are closely monitoring auto parts stocks for shelter from trade risks. The article highlights three U.S.-listed companies with significant exposure to this dynamic: Dana (DAN), Dauch Corporation (DCH), and Motorcar Parts of America (MPAA). These firms offer direct exposure to U.S.-centric drivetrain and aftermarket components as automakers potentially shift sourcing domestically to mitigate cross-border costs. While these stocks provide a hedge against tariff-induced strain, investors must weigh execution risks, customer concentration, and debt levels against potential margin improvements and cost-saving initiatives." datetime: "2026-08-18T03:48:33.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/296173415.md) - [en](https://longbridge.com/en/news/296173415.md) - [zh-HK](https://longbridge.com/zh-HK/news/296173415.md) --- # Auto Parts Stocks For Investors Seeking Shelter From US Canada Tariff Risk With the U.S. threatening tariffs of up to 50% on a wide range of Canadian exports and auto makers already warning that current trade frictions sit above typical 6% margins, investors are watching auto parts stocks closely. Rapid shifts in cross border costs can reshuffle which companies bear the strain and which are relatively shielded. This article looks at three U.S. listed auto parts stocks that are more directly exposed to this trade story. The stocks highlighted below are just a sample from this trade focused corner of the auto parts space, and the full screen surfaced 14 more companies with equally detailed stories that are not covered here. To go straight to the source and identify which U.S. listed auto parts and equipment makers best fit your own view on trade risk, analyze the U.S.-Listed Auto Parts and Equipment Makers with Primarily U.S. Operations screener. ## Dana (DAN) **Overview:** Dana is a Maumee based auto parts company that supplies axles, driveshafts, transmissions and full power conveyance systems for light and commercial vehicles, with a large on highway footprint that fits the drivetrain and U.S. focused supplier theme of this screener. Alongside its core hardware, Dana also provides energy management, thermal systems and electrodynamic components that plug into both internal combustion and electrified vehicle platforms. **Operations:** Dana generates most of its revenue from the Light Vehicle segment at about US$5.4b, with the Commercial Vehicle segment contributing around US$2.4b and a smaller offset from inter segment eliminations. **Market Cap:** US$3.3b Dana gives you direct exposure to U.S. centric drivetrain and powertrain hardware at a time when auto makers may lean harder on domestic suppliers to reduce cross border tariff risk. The company is working through a profitability turnaround, with cost reduction plans, electrification programs and the Eaton Mobility deal all aimed at improving margins and cash generation. However, execution and customer concentration remain important watchpoints. Management has talked about passing tariff costs through to customers and has already taken mitigation steps, which could matter if Canada U.S. trade frictions worsen. Analysts have discussed the possibility of earnings improvement and capital returns over time, but that potential comes with funding risk and current losses that investors need to weigh carefully. Dana’s turnaround story, with cost cuts, electrification programs and the Eaton Mobility deal, could reshape the risk reward profile. Get the full context in the 3 key rewards and 2 important warning signs (1 is major!). NYSE:DAN Revenue & Expenses Breakdown as at Aug 2026 ### Build your own auto parts shortlist around Dana Dana and the other two auto parts stocks in this article are all examples of what you can surface with our tools. Use our flexible Screener to mix filters on valuation, balance sheet strength, risks and more so they fit your own view, or start with any of our curated Investing Ideas. ## Dauch (DCH) **Overview:** Dauch Corporation is a Detroit based auto parts manufacturer that designs and builds driveline systems and metal formed components for electric, hybrid and internal combustion vehicles. This makes it a direct play on U.S. centric sourcing of axles, driveshafts and other drivetrain hardware as trade risks push buyers toward domestic suppliers. **Operations:** Dauch generates most of its revenue from the Driveline segment at about US$6.0b, with the Metal Forming segment contributing around US$2.8b and a smaller offset from intersegment sales. **Market Cap:** US$1.6b Dauch provides exposure to U.S. focused driveline and metal forming capacity at a time when auto makers are reassessing how much critical hardware to source across the border. The company is working on a multi year integration of Dowlais and is targeting sizeable cost savings from that deal. It is also adding EV contracts such as electric drive units and e Beam axles that help validate its technology in newer vehicle platforms. At the same time, Dauch carries meaningful debt, has relied on external funding and has a heavy dependence on a major customer, so execution on cost cuts, localization and tariff mitigation will be important. If those pieces come together, the gap between current pricing and analyst expectations could be important for long term investors to assess more closely. Dauch’s integration story, cost cuts and new EV driveline work could be masking a very different risk reward setup than the market assumes. Get the full picture in the 3 key rewards and 1 important major warning sign NYSE:DCH Revenue & Expenses Breakdown as at Aug 2026 ## Motorcar Parts of America (MPAA) **Overview:** Motorcar Parts of America supplies non discretionary aftermarket auto parts and diagnostic equipment, from alternators and starters to brake components and test systems, to major retail chains, distributors and automakers across North America. The business is closely tied to U.S. vehicle repair demand, with brands such as Quality-Built and D&V Electronics and a focus on keeping cars and trucks on the road rather than on cross border vehicle production. **Operations:** Motorcar Parts of America generates the bulk of its revenue from Hard Parts at about US$724 million, with around US$46 million reported in All Other activities and a small intersegment elimination. **Market Cap:** US$236 million Motorcar Parts of America gives you a U.S. focused aftermarket angle on the auto parts theme at a time when tariffs on Canadian trade and broader supply chain uncertainty are front of mind. The company leans on non discretionary categories like rotating electrical parts and brakes, where repairs are hard to delay. Management has been working to offset tariff costs through price increases and supply chain shifts away from higher risk sources. At the same time, the stock carries questions around funding, cash flow and recent swings between net income and losses, with insider selling and share price volatility emphasizing that execution matters. For investors who want U.S. centric auto parts exposure with both upside potential and clear risks to track, Motorcar Parts of America is worth a closer look. Motorcar Parts of America could be masking a very different risk and reward mix, with non discretionary repair demand sitting beside funding and cash flow questions. See how the 4 key rewards and 3 important warning signs (1 is major!) might change your view right before the crucial twist NasdaqGS:MPAA Revenue & Expenses Breakdown as at Aug 2026 ## Seeking Alternatives Before The Crowd Moves Fresh stock ideas can gain breakout momentum fast and the best entry points often go flying by. Before these under the radar stories get fully caught, consider acting early. - Spot companies building quiet momentum while they are still under the radar through the 19 high quality undiscovered gems and see which stories deserve a place on your watchlist. - Target resilient cash generators that can keep portfolios steady by scanning the list of solid balance sheet and fundamentals (50 results) and focus your attention on sturdier balance sheets before conditions shift. - Explore structural demand for electricity and grid upgrades by tapping into the 40 power grid technology and infrastructure stocks and focus on businesses positioned around essential infrastructure themes. _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._ ### **New:** Manage All Your Stock Portfolios in One Place We've created the **ultimate portfolio companion** for stock investors, **and it's free.** • Connect an unlimited number of Portfolios and see your total in one currency • Be alerted to new Warning Signs or Risks via email or mobile • Track the Fair Value of your stocks Try a Demo Portfolio for Free ### Related Stocks - [DCH.US](https://longbridge.com/en/quote/DCH.US.md) - [MPAA.US](https://longbridge.com/en/quote/MPAA.US.md) - [DAN.US](https://longbridge.com/en/quote/DAN.US.md) ## Related News & Research - [MPAA: Q1 sales and profit declined, but full-year outlook and growth initiatives remain on track](https://longbridge.com/en/news/295405382.md) - [J.P. Morgan Reaffirms Their Buy Rating on Dana Incorporated (DAN)](https://longbridge.com/en/news/295401868.md) - [ABN AMRO Bank N.V. Invests $33.46 Million in Autoliv, Inc. $ALV](https://longbridge.com/en/news/296015266.md) - [Apple's Home Hub Will Have a Widget Gallery With iPhone Widget Support](https://longbridge.com/en/news/296263913.md) - [DAN: Eaton Mobility acquisition and operational improvements set the stage for growth and margin expansion](https://longbridge.com/en/news/295820269.md)