Donald Trump fulfilled his promise to impose higher tariffs if he won a second term as president of the United States. However, despite continuous threats and bluffs, investors have learned to navigate the heightened market volatility. The TSX posted three record closes in the first week of June 2025, while nine of its 11 primary sectors have positive returns year to date.
The resilience of Canada’s main stock exchange shows there are investment opportunities in a tariff environment. A $5,000 investment in growth areas like gold mining, electronic products, and specialty semiconductors can deliver substantial financial windfall.
Premier gold producer
The basic materials sector has outperformed the broad market thus far in 2025, with a gain of +28.9% compared to +6.88%. Several gold stocks are soaring because they have always been safe havens for investors. IAMGOLD (TSX:IMG) is among the stellar performers. This $5.87 billion intermediate gold producer and developer has operating mines in Canada and West Africa.
At $10.20 per share, the trailing one-year price return is 94.66%. Had you invested $5,000 one year ago, your money would be $9,357.80 today. Moreover, the overall return in three years is +251.72%, representing a 51.85% compound annual growth rate (CAGR).
In the first quarter (Q1) of 2025, net earnings declined 37.8% to $39.7 million, while mine-site free cash flow (FCF) rose 202.2% year over year to $139.6 million. Its president and CEO, Renaud Adams, said, “In the first quarter of 2025, IAMGOLD achieved important milestones during the quarter, which position the company well for the future.”
Tech-driven solutions
Firan Technology Group (TSX:FTG) provides solutions for aerospace and defence electronic products and sub-systems. The $281.94 million global company specializes in technology-driven solutions, specifically printed circuit boards (PCBs). At $11.20 per share, the market-beating return of +53.64% is proof that business thrives.
FTG Circuits, its lead operating unit, manufactures high-quality, high-reliability PCB products. The FTG Aerospace delivers advanced avionics and sub-system hardware. In Q1 2025, adjusted net earnings climbed 214% to $3.3 million versus Q1 2024, while the quarter-end backlog rose 43% year over year to $142.5 million.
According to management, mitigation plans are in place to minimize the impact of tariffs. FTG acquired an American company to expand its manufacturing capacity and sell to U.S. customers. Its non-U.S. sites sell to customers outside the U.S. More importantly, the Canadian sites have zero tariffs on input costs.
Critical materials
5N Plus (TSX:VNP) is a producer of specialty semiconductors and performance materials. The $796.9 million company services electronic, medical imaging, pharmaceutical, renewable energy, space, security, and industrial application markets. At $8.95 per share, the small-cap stock has rewarded investors with a total return of +473.72 % over three years.
Its president and CEO, Gervais Jacques, said, “Our outstanding first quarter performance reflects strong demand and accelerated purchasing by customers in strategic sectors.” In Q1 2025, revenue and adjusted EBITDA grew 37% and 77% year over year to US$88.9 million and US$20.8 million, both new records. Net earnings jumped 284% to US$9.6 million compared to Q1 2024.
Jacques added that 5N Plus is a reliable partner for customers in the ongoing global trade volatility. The company has sourcing capabilities to supply critical materials to critical industries.
Logical options
IAMGOLD, Firan Technology, and 5N Plus are logical investment options in 2025. It makes sense to invest in these stocks because the businesses can endure significant market headwinds, including U.S. tariffs.
