The TSX had a record-breaking year in 2025, notwithstanding a U.S.-initiated tariff shockwave. Canadian stocks displayed resiliency, delivering a historic total return of 32%. While geopolitical risks heightened volatility in 2026, it doesn’t mean the trade friction is over.
The upcoming mandatory review of the Canada-United States-Mexico Agreement (CUSMA) in July brings fresh uncertainty. Fortunately, three stocks are best to own during a trade war.
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Durable demand for nuclear power
Cameco Corporation (TSX:CCO) is a potential winner in a trade war environment. The $69.7 billion nuclear energy company mines uranium and processes nuclear fuel to generate carbon-free nuclear power. It provides nuclear fuel solutions to utilities worldwide.
Besides the inelastic, durable demand for nuclear power, Cameco’s supply contracts with utility companies are long term. Tariffs or duties are passed on to buyers, and therefore, the impact on the bottom line is negligible. Management believes that Cameco is uniquely positioned to capitalize on near-, medium- and long-term growth opportunities in the industry.
The company added that the global target to triple nuclear power capacity by 2050 should durably strengthen the long-term fundamentals. In Q1 2026, net earnings attributable to equity holders rose 87% to $131 million versus Q1 2025.
Performance-wise, CCO is up 17.8% year-to-date and pays a modest 0.16% dividend. The current share price is $147.99. Analysts’ 12-month average to high price targets are $179.41 and $200, respectively.
Prime space and defence contractor
MDA Space (TSX:MDA) is heavily integrated into space infrastructure and defence frameworks, making it insulated from a trade war. The $6.6 billion Canadian firm is a prime contractor to governments. It is also involved in major commercial satellite programs.
On January 8, 2026, MDA announced that it has secured an indefinite delivery/indefinite quantity (IDIQ) contract from the U.S. Missile Defense Agency for the Scalable Homeland Innovative Enterprise Layered Defense (SHIELD) program. The contract runs until 2035 and has a ceiling of up to $151 billion.
The aerospace and defence stock continues to crush the broader market. As of mid-May 2026, the year-to-date gain is 95.8%. MDA Space never lost momentum after placing 15th in the 2025 TSX30, an annual ranking of the 30 top growth stocks. If you invest today, the share price is $52.16. The total five-year return is plus-618.5%.
MDA’s newly opened high-volume satellite manufacturing facility in Montréal is ready for its digital satellite product line. The $3.7 billion backlog at the end of Q1 2026 provides revenue visibility into 2026 and beyond. Additionally, the pipeline in commercial and government customers is worth $40 billion.
A no-brainer buy
Loblaw (TSX:L) is a no-brainer buy if you anticipate a trade war, owing to the defensive business model. The $70.8 billion food and pharmacy company provides essential goods and operates a nationwide grocery network, relying on localized supply chains. This consumer staples stock trades at $60.66 per share and pays an ultra-safe 1% dividend.
Net earnings in Q1 2026 rose 18.5% year-over-year to $619 million, while free cash flow (FCF) jumped 188.8% to $621 million from a year ago. Management plans to advance its growth initiatives in 2026 and expects earnings from the Retail business to grow faster than sales. Loblaw also commits to allocating a significant portion of FCF to share repurchases.
Sleep easy
Cameco, MDA Space, and Loblaw and their respective businesses are practically immune from a trade war. Investors can sleep easy if trade tensions escalate anew.
