Uncertainty around trade and tariff policy out of the U.S. remains high, with already-enacted tariffs (and continuing threats of new tariffs) upsetting the previously established and rather consistent global order on this front. President Trump has enacted a series of tariffs aimed at reducing trade imbalances in the United States, with impacts on both American consumers and trading partners abroad.
As one of the largest trading partners of the U.S., a number of Canadian stocks could see continued downside in 2026, if tariffs remain in place and/or are ratcheted up. I’ve been watching developments on this front closely, and there are three stocks in particular I think Canadian investors will want to pay close attention to for the remainder of the year.
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Magna International
Major global auto parts supplier Magna International (TSX:MG) is one Canadian company that earns the vast majority of its revenue via cars produced for the U.S. market.
With the U.S. automotive industry seemingly one of the key areas of focus for the Trump administration in terms of job preservation, and a historical precedent for protecting this industry in times of turmoil, many experts believe the current tariffs in place on automobiles are unlikely to be lifted anytime soon.
With a 35% tariff rate on Canadian exports put in place in August 2025 still in effect, squeezed margins for companies like Magna initially hit this stock hard in April of last year (upon announcement). However, this stock has been flying since the start of the year and has more than doubled from its post-tariff-announcement lows.
That said, if margins do compress further in the coming quarters as tariff pressures begin to hit consumers harder, this is a stock I think investors may want to be careful with at this point in time.
First Quantum Minerals
Another sector the Trump administration has shown an affinity for protecting is the minerals sector, with First Quantum Minerals (TSX:FM) being among the largest copper and nickel producers Canada has to offer.
Like the other companies on this list, First Quantum’s share price has been tearing higher following the onset of base metals tariffs announced last year. What these tariffs have ultimately done is raised the costs for EV battery and infrastructure buyers, with solid demand for these minerals outpacing previous concerns that First Quantum could see a real beating last year.
As is the case with the other two names on this list, I’m taking a cautious approach to the First Quantum’s rally. I think the Trump administration will do as much as possible to onshore production of key battery minerals, though there is a solid short-term investment thesis backing up this rally.
I think the bottom line on a company like First Quantum really is whether investors are more concerned about tariffs than they are about commodity prices (which have been on the rise, and a tailwind for First Quantum). If we continue to see copper and nickel prices soar, this is a stock that could weather the storm – we’ll see.
Teck Resources
In the steelmaking coal and copper business, Teck Resources (TSX:TECK.B) is the final company rounding out this list.
Now, Teck is a company I’ve been bullish on for a long time, and I don’t necessarily think that tariffs will end up being a long-term driver of downside in this name. However, in the short term, anything is possible, and we did see a drawdown through the end of last year in shares of Teck stock.
That said, with investors looking to amplify exposure to all industrial metals, there are offsetting factors that could lead to volatility (and much higher or lower prices, depending on how the geopolitical environment changes). Personally, there are three companies I’m going to steer clear of for the time being, with tariff overhang risk being one of the key factors to watch.
