Q: What’s your view on the transportation sector right now and companies such as TFII and CP? Will they be significantly impacted by US tariffs? Would these be a hold or more to another sector such as financials?
5i Research Answer:
The tariffs are far more likely to impact 'goods' rather than services such as transportation. But of course these companies transport goods so there could still be an impact. BUT....both have significant US business, and the transportation could see benefits from protectionist policies and 'onshoring' if more manufacturing moves to North America. Thus, there could be an offset, even a positive one depending on how fast things move. Financials may not see much impact at all from tariffs. Overall, we would be comfortable investing in both sectors.