On Monday, the President of the United States, Donald Trump, announced a 50% tariff on certain Canadian imports, including electronics, sports equipment, ornaments, flowers and flower products, and essential oils, with the measures set to take effect on August 19. The announcement has renewed concerns about escalating trade tensions and their potential impact on Canadian businesses.
Against this backdrop, investors may want to focus on companies with limited cross-border trade exposure. Here are three Canadian stocks that are likely to remain largely unaffected by these tariffs and could continue to deliver solid returns in the coming quarters.
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Waste Connections
Waste Connections (TSX: WCN) is a leading waste management company that provides non-hazardous solid waste collection, transportation, and disposal services across the United States and Canada. Given the essential nature of its services, long-term franchise agreements, and localized operating model, the company’s earnings are largely insulated from the direct impact of international trade tariffs. While tariffs on steel, aluminum, and heavy-duty vehicles could increase equipment and infrastructure costs, Waste Connections has historically offset such cost pressures through contractual price escalators, fuel surcharges, and disciplined pricing.
Beyond its resilient business model, Waste Connections continues to strengthen its long-term growth outlook through organic expansion and strategic acquisitions. After bringing six renewable natural gas (RNG) facilities into operation, the company plans to commission another six by the end of this year, further diversifying its revenue streams. At the same time, its strong cash flow generation and healthy balance sheet support an active acquisition strategy, with a robust pipeline of private targets representing approximately $5 billion in annual revenue. Given its limited exposure to tariff-related risks, defensive business models, and multiple long-term growth drivers, Waste Connections is well positioned to deliver solid returns despite the current trade uncertainty.
Fortis
Another Canadian stock that appears well insulated from these tariffs is Fortis (TSX: FTS). The company owns and operates nine regulated electric and natural gas utilities across North America and the Caribbean, with the majority of its assets concentrated in low-risk transmission and distribution operations. Because its utilities operate under regulated frameworks, Fortis can generally recover higher capital and operating costs – including any tariff-related increases in equipment or construction expenses – through approved rate adjustments. This reliable business model helps protect its earnings, cash flows, and dividend-paying ability.
Beyond its defensive business model, Fortis continues to invest in long-term growth. The company plans to invest $28.8 billion through 2030 to expand and modernize its regulated utility network, a strategy that could grow its rate base to $57.9 billion at an annualized rate of 7%. The company’s expanding asset base should support steady earnings growth, enabling management to target annual dividend increases of 4% to 6% through the end of the decade. With its resilient, regulated operations, a visible growth pipeline, and a long history of dividend growth, Fortis is well-positioned to deliver stable returns even amid heightened trade uncertainty.
Sienna Senior Living
My final pick is Sienna Senior Living (TSX: SIA), one of Canada’s leading seniors housing providers, offering independent living, assisted living, memory care, long-term care (LTC), and other specialized care services. The company’s operations have minimal direct exposure to international trade tariffs. While higher tariffs could increase the cost of food, medical supplies, and other operating inputs, Sienna is well positioned to mitigate these pressures. It can pass through a portion of the higher costs in its private-pay residences. At the same time, its LTC operations benefit from substantial government funding, with many reimbursement rates indexed to inflation.
Sienna also has multiple long-term growth catalysts. Driven by Canada’s aging population and rising demand for seniors housing, the company continues to expand through a combination of organic growth and strategic acquisitions. So far this year, Sienna has acquired approximately $188 million of assets and expects to remain active on the acquisition front, supported by a strong pipeline of opportunities.
Given its defensive business model, limited exposure to tariff-related risks, expanding addressable market, and disciplined growth strategy, Sienna is well positioned to deliver attractive long-term returns. The company also pays a monthly dividend of $0.078 per share, yielding approximately 4.1% on a forward basis.
