Trade wars can rattle markets but also spotlight homegrown opportunities. When tariffs go up, and global supply chains get tangled, domestic companies often become more attractive. That’s especially true in Canada, where some industries have the capacity to step in and meet demand. While the idea of a full-scale trade war isn’t pleasant, preparing your portfolio with resilient Canadian businesses could provide some protection and possibly even upside. Three stocks that could benefit from this scenario are Birchcliff Energy (TSX:BIR), BRP (TSX:DOO), and Finning International (TSX:FTT).
Birchcliff
Birchcliff Energy is a natural gas producer based in Alberta with operations in the Peace River Arch region. It’s the kind of company that tends to do well when global supply chains break down. During a trade war, energy security becomes a big deal. Countries lean more heavily on domestic energy producers, particularly those that can deliver reliable output at low cost.
In its first-quarter 2025 results, Birchcliff reported earnings per share (EPS) of $0.13, handily beating analyst expectations. The company reaffirmed its 2025 production guidance of between 76,000 and 79,000 barrels of oil equivalent per day. Birchcliff also declared a quarterly dividend of $0.10 per share and remains focused on strengthening its balance sheet by paying down debt. If global tensions rise and LNG demand increases from trading partners like Europe or Asia, a natural gas supplier like Birchcliff could be in a strong position.
BRP
Then there’s BRP, the recreational power sports company behind names like Sea-Doo, Ski-Doo, and Can-Am. When imported luxury goods become more expensive due to tariffs, consumers often look to domestic alternatives. BRP, with its well-established brand and broad product lineup, is a clear option.
While the company posted a net loss of $44.5 million in its fourth-quarter fiscal 2025 results, most of that was attributed to adjustments in dealer inventory and declining demand following a post-pandemic surge. Revenue was still a hefty $2.69 billion for the quarter, and BRP increased its quarterly dividend by 7% to $0.215 per share. Management continues to invest in electrification, including the launch of its first electric motorcycles. If global trade disputes disrupt the supply of recreational vehicles from overseas, BRP could be a major beneficiary by keeping production local and responding quickly to domestic demand.
Finning
The third pick is Finning International, which sells, rents, and services Caterpillar equipment across Canada, South America, and the United Kingdom. Finning’s customer base spans mining, construction, and energy — industries that often receive government investment during times of economic or trade-related uncertainty.
In 2024, Finning generated $10.1 billion in revenue, up 6% from the previous year. Its EPS hit $3.43, and its return on equity was an impressive 23.6%. What’s more, the company’s equipment backlog climbed to $2.6 billion, suggesting strong ongoing demand. If Canada responds to trade pressure with domestic infrastructure investment, Finning would be well-positioned to supply the equipment needed to carry it out. It also pays a dividend, yielding about 2.6% as of writing, and continues to invest in expanding its product support services.
Foolish takeaway
Of course, these aren’t low-risk plays. Birchcliff is exposed to volatile natural gas prices. BRP’s sales are discretionary, and Finning depends on broader capital spending trends. However, each offers real advantages if the global trade environment becomes less cooperative. In times of disruption, companies that produce essential goods and have strong domestic operations can take market share while others struggle to adapt.
Diversifying across these three stocks could offer exposure to very different sectors, each with its own tailwinds in a trade war scenario. Birchcliff gives you energy, BRP offers consumer-facing manufacturing, and Finning covers infrastructure and industrial growth. Together, these could provide a useful hedge, and maybe even a bit of offence, if trade tensions escalate.
In uncertain global markets, sometimes the best move is to look inward. These three Canadian stocks are well-equipped to navigate a more protectionist world. And if tariffs rise and cross-border trade slows, their strength at home might just give your portfolio the edge it needs.
