Following the recent rollout of new U.S. tariffs on Canadian goods, the stock market has responded with heightened volatility. Yet, many TSX stocks may remain relatively insulated.
Companies with limited U.S. exposure, robust domestic demand, or built-in pricing power may prove resilient, if not opportunistic, in the face of these protectionist trade policies. And identifying such tariff-resistant stocks with strong fundamentals could help safeguard your portfolio while still capturing long-term upside potential.
In this article, I’ll highlight two carefully selected TSX-listed stocks that look attractive for their defensive characteristics amid the current trade standoff.
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Brookfield Asset Management stock
Brookfield Asset Management (TSX:BAM) has been rallying lately, and its strong momentum makes it worth a closer look right now. With trade tensions heating up, BAM’s solid footing in global infrastructure assets and limited reliance on cross-border goods movement makes it a resilient pick for long-term investors.
The company currently manages over US$1 trillion in assets and focuses on alternative investments across sectors like real estate, infrastructure, renewable energy, and private credit. Over the last year, BAM stock has climbed nearly 49% to currently trade at $46.50 per share with a market cap of $20 billion. It also pays an annualized dividend yield of about 3.8%.
In the first quarter of 2025, BAM’s fee-related earnings jumped 26% YoY (year over year) to US$698 million, largely due to a flood of new capital, as the company raised US$25 billion in just one quarter. In total, more than US$140 billion poured in over the past year. This surge in fee-bearing capital helped push its distributable quarterly earnings up by 20% YoY to US$654 million despite a bump in taxes.
With this, BAM now has US$119 billion in funds ready to deploy, and it’s actively investing them. Brookfield’s core sectors are stable and less likely to be shaken by tariffs or global political drama.
In times like these, when cross-border friction is rattling markets, BAM’s model looks resilient. And its exposure to long-duration, inflation-protected revenue streams could make all the difference for investors buying it for the long term.
Dollarama stock
Dollarama (TSX:DOL) has also been delivering stellar returns in recent months. With DOL stock up over 39% in the past year, it’s outperforming the broader market by a wide margin, even as cross-border trade tensions threaten to disrupt other sectors.
Currently, the company runs over 1,600 stores across Canada and owns a majority stake in Dollarcity, which operates in Latin America. Right now, Dollarama stock is trading at $171.48 per share with a market cap of $47.5 billion.
In the January 2025 quarter, Dollarama’s sales jumped 14.8% YoY to $1.88 billion. That growth came mainly from strong demand for its consumables and seasonal items, backed by an expanded store base. As a result, its quarterly earnings climbed 21.7% YoY to $1.40 per share as lower logistics costs improved its margins.
Looking forward, Dollarama plans to open more stores and build a major logistics hub in Western Canada. Its focus on value pricing, stable demand, and supply chain control could help it stay strong even as global trade frictions intensify.
