With Trump back in the White House and threatening 25% tariffs on Canadian exports, markets are getting jittery. If you’re splitting time between Canmore and Switzerland like you mentioned, and juggling your daughters’ education, you probably don’t want investments that need constant attention. The good news? Some Canadian stocks might actually benefit from all this trade drama. Here’s my take on three worth watching:
Gold Mining: Agnico Eagle Mines (TSX: AEM)
When trade wars heat up, gold often shines. If Canadian exports get hit with tariffs, watch for investors flocking to safe havens like gold. Agnico Eagle has mines across Canada, Mexico, and Finland – giving it nice geographical diversity.
What makes it interesting: Unlike companies shipping physical goods across the border, Agnico sells gold – a globally traded commodity priced in US dollars. If tariffs weaken the Canadian dollar (which often happens when exports drop), Agnico’s USD revenues look even better when converted back to Canadian dollars.
Agnico stands out for solid operations and consistent dividend growth. Their diversified assets mean they’re not overly exposed to US-specific trade risks.
Just watch out for gold’s volatility – it doesn’t always rise during economic uncertainty. Check their debt levels and production costs before jumping in.
Utilities: Fortis (TSX: FTS)
Trade war or not, people still need electricity! Fortis delivers power and gas across Canada, the US, and Caribbean markets. This kind of essential service typically sees steady demand regardless of economic conditions.
Why consider it: Fortis has raised its dividend for over 50 consecutive years (impressive!) with yields around 4%. Their regulated business model often allows them to pass increased costs to consumers. And with operations on both sides of the border, they’ve got some natural hedging against Canada-specific tariff impacts.
If investors start fleeing volatile manufacturing sectors, stable utilities like Fortis could see increased demand for their shares.
The main risk: Higher interest rates (which sometimes follow tariff implementation) can pressure utility stocks, especially those carrying significant debt. Take a close look at their leverage before investing.
Copper Mining: Teck Resources (TSX: TECK.B)
Here’s where things get interesting. Tariffs don’t just create problems – they reroute supply chains. Copper is crucial for construction, electronics, and renewable energy. If US tariffs disrupt traditional suppliers like China, Canadian miners could pick up customers in Asia or Europe.
Teck Resources has substantial copper assets and could benefit from price increases or new trade patterns. A weaker Canadian dollar would also boost their margins on USD-priced exports.
What makes Teck worth watching: Their high-grade copper mines position them well for the global push toward electrification. Unlike companies dependent on US markets, Teck sells globally, providing some insulation from North American trade disputes.
The catch: Copper prices fluctuate with global economic health. If tariffs trigger a broader economic slowdown, copper demand could fall. Also worth noting that Teck has exposure to coal and zinc markets too.
Making Sense of It All
These stocks require minimal day-to-day oversight – perfect for your situation where you’re balancing homes in two countries while managing your kids’ education. With your finance background, you’re well-positioned to evaluate these companies, but don’t forget to check current data and consult with your advisor before making moves. Trade policies are constantly evolving, especially in the early days of a new administration.
By focusing on sectors that might weather (or even benefit from) trade tensions, you could turn this market uncertainty into an opportunity – securing your family’s financial future while maintaining your international lifestyle.
This was “Tariff Troubles: Three Canadian Stocks That Could Thrive”, any stock you would add? Tell us!
