12:22 PM EDT, 07/29/2025 (MT Newswires) -- With more than half of US imports now covered by trade deals, the industrial sector is poised to benefit from diminishing tariff-related uncertainty, continued reshoring, and commitments of energy and defense investments and purchases, BofA Securities said in a note Tuesday.

Companies like Rockwell Automation ( ROK ) , Parker Hannifin ( PH ) , and Eaton (ETN) are positioned to benefit from a wider reshoring movement in US manufacturing amid decreasing tariff-related tensions and rising capital investments, the note said.

Exporters like Ametek ( AME ) , Honeywell ( HON ) , Emerson Electric ( EMR ) , and Flowserve ( FLS ) are expected to experience fewer disruptions, given the relatively restrained retaliatory response from US trading partners, BofA said. Ametek ( AME ) derives 26% of its revenue from exports, with Honeywell ( HON ) at 13%, Emerson at 7%, and Flowserve ( FLS ) also at 7%. according to the note.

The US recently reached trade agreements with the UK, Vietnam, Indonesia, the Philippines, Japan and the European Union, covering about 56% of US goods imports, BofA said.

The EU alone pledged to purchase $750 billion of US energy and make direct investments worth $600 billion, while Japan committed $550 billion in US investments alongside LNG offtake and defense procurement agreements, the firm said.

"With the bulk of North American imports covered under the US-Mexico-Canada Agreement, the largest remaining industrial trading partner remaining is China," BofA said.

BofA has a buy rating on Ametek ( AME ), Eaton, Emerson Electric ( EMR ), Flowserve ( FLS ), Honeywell ( HON ), Parker-Hannifin ( PH ), and Rockwell.

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