5 Canadian Stocks That Won’t Feel the Impact of Tariffs
Mar 10, 2025
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Discover how the evolving trade war between Canada and the U.S. is reshaping investment strategies. Learn about five resilient Canadian stocks that are likely to remain unaffected by tariffs, including strong performers in utilities and gold mining. Listen in as the hosts analyze retail investing trends, focusing on younger investors' disciplined approaches versus the growing speculation in the market. Plus, hear insights on the impact of zero-commission trading and the importance of financial literacy in today's investment landscape.
The ongoing trade tensions between Canada and the U.S. present significant concerns for investors, leading to heightened vigilance regarding potential market shifts.
Positive developments in interprovincial trade barriers in Canada may enhance economic interconnectivity and support local industries amid external trade challenges.
The rise of retail investing has transformed investment behavior, pushing many new investors towards riskier assets while underscoring the need for educational resources on sound investing practices.
Deep dives
Impact of Trade Tensions on Investment Climate
Trade tensions between Canada and the U.S. are perceived as a significant factor impacting the investment climate for Canadians in 2025, according to a survey by Wilbur Budget. A majority of respondents, 62%, highlighted these tensions as a primary concern, with inflation, interest rates, and the federal election following closely behind. This suggests that Canadians are closely watching how these geopolitical issues can influence their financial well-being. The intertwined nature of trade issues and political climate indicates that investors need to remain vigilant and adaptable in the face of potential market shifts.
Silver Linings and Interprovincial Trade
Despite the uncertainties in international trade, there is a positive development regarding trade barriers among Canadian provinces. Major provinces are beginning to lift interprovincial trade barriers, fostering free trade within Canada. This initiative, seen as a response to challenges posed by external trade tensions, could enhance economic interconnectivity across provinces and promote local industries. The possibility of accessing products, like British Columbia wines in Ontario, signifies a forward step towards a more integrated national market.
Effects of Tariffs on Food Prices and Consumer Behavior
The introduction of tariffs raises concerns about potential inflation, particularly regarding agricultural products and food prices in Canada. Tariffs can create uncertainty among consumers, compelling them to rethink significant purchases, such as homes, due to fears of financial instability. Business investments may similarly slow as companies weigh the risks of volatility against long-term growth potential. The expectation of rising food prices reflects the broader economic implications of trade wars on everyday Canadians.
Defensive Stocks Amid Market Uncertainty
In volatile market conditions, certain stocks are positioned as more resilient against economic fluctuations, particularly defensive stocks like Loblaws and Intact Financial. Loblaws, for example, can manage cost increases associated with tariffs by leveraging its in-house brands, mitigating overall pricing pressure for consumers. Intact Financial, being a major insurer, is expected to maintain stability by adjusting policy rates without significant impact on profitability. Investing in defensive sectors typically offers lower growth but provides protection against market downturns.
The Evolving Landscape of Retail Investing
The rise of retail investing has significantly transformed the financial landscape, with many individuals now taking control of their investment portfolios. Recent trends indicate a shift towards higher allocations in risk assets, particularly among newer investors who entered the market during the pandemic. This demographic is characterized by a willingness to embrace volatility, often foregoing traditional, less risky investments for high-reward opportunities. As more people engage in self-directed investing, the need for education on prudent investment strategies becomes increasingly crucial to avoid the pitfalls of emotionally-driven trading.
The trade war between Canada and the U.S. is evolving fast, and its impact on investors is undeniable. In this episode, we break down the latest developments, including the U.S. granting automakers a temporary exemption and potential carve-outs for agricultural products. Simon shares his critical take on the Canadian government’s counter-tariffs and why they could hit the most vulnerable Canadians hardest.
We also discuss the broader market implications—how uncertainty leads to hesitation in home purchases, business investments, and overall economic activity. But where there’s uncertainty, there’s opportunity. We look at TFII and BRP, two beaten-down stocks that might be worth watching, and highlight five Canadian stocks that should see little impact from tariffs on their businesses.
Finally, we shift gears to the state of retail investing, looking at how the rise of DIY investors post-2020 has shaped risk-taking behavior. Are retail investors making smarter moves, or are we heading toward more speculation with the rise of event contracts and private equity products?
