The latest Canada-U.S. trade dispute is reaching another critical stage in 2026. U.S. President Donald Trump has signed three proclamations directing 50% tariffs on a new list of Canadian goods, including milk, cream, other dairy products, beer, wine, cider, whisky, and other spirits. The measures are expected to take effect on August 19, after a 30-day implementation window, while trade talks continue. Some goods that currently qualify for tariff-free treatment under the Canada-United States-Mexico Agreement could also be affected, although energy, potash, critical minerals, and fish were excluded from the latest measures.
Against this uncertain trade backdrop, some Canadian companies are still delivering strong operating results, which could act as a buffer against external pressures. So, if you want to reduce the impact of trade uncertainty on your portfolio, focusing on such fundamentally strong Canadian stocks could be a sensible approach right now.
Here are two Canadian companies that could continue to thrive despite trade tensions.
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Loblaw stock
The first company that stands out in this uncertain Canada-U.S. trade environment is Loblaw Companies (TSX: L), a business built around groceries, pharmacies, healthcare services, financial products, and other everyday consumer needs.
At the time of writing, Loblaw stock recently traded at $64.98 per share and carried a market cap of about $75.2 billion. The stock gained 19% over the last year and more than doubled over three years. At the current market price, it also offers an annualized dividend yield of about 0.9%.
That strong stock performance has been mainly backed by steady demand and solid execution. In the first quarter of 2026, Loblaw’s revenue climbed 4.2% year-over-year (YoY) to $14.5 billion as its food retail same-store sales rose 2.4%, while drug retail same-store sales saw a 4.1% increase. Its results from the pharmacy and healthcare services segment were especially strong, with same-store sales rising 6.7% YoY.
In the latest quarter, the company’s e-commerce sales also jumped 20.3% from a year ago, helped by PC Express delivery and third-party delivery options. Higher sales, better operating leverage, and lower expenses as a percentage of sales drove its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) up by 6.5% YoY to $1.6 billion.
Meanwhile, Loblaw is continuing to expand its network as it opened five hard discount stores and eight drug stores in the first quarter. The company plans about $2.4 billion in gross capital spending in 2026 and continues to return cash through share repurchases and dividends.
For investors seeking a Canadian business that could keep growing through economic and trade uncertainty, Loblaw’s essential products, strong domestic presence, and growing digital and pharmacy operations make it an attractive investment choice.
Saputo stock
Another Canadian company showing resilience amid trade tensions is Saputo (TSX: SAP), one of the world’s largest dairy processors with operations across Canada, the United States, Australia, and the United Kingdom. While trade uncertainty may create headwinds for dairy exports, this company is still finding ways to grow.
Following a 43% rally over the last year, Saputo stock now trades at $41.14 per share with a market cap of $16.5 billion. It also offers an annualized dividend yield of roughly 1.9%.
The company’s revenue for fiscal year 2026 (ended in March) from continuing operations fell 1.5% YoY to $17.6 billion, mainly because of lower U.S. dairy commodity market pricing. Still, the underlying business improved as higher sales volumes in North America, better pricing, a stronger product mix, and operating efficiencies drove its adjusted EBITDA up by 10.4% YoY to $1.7 billion. More importantly, its adjusted EBITDA margin also improved to 9.5% from 8.4%.
In June 2026, Saputo completed the sale of an 80% stake in its Argentina operations for net proceeds of about $543 million while retaining a 20% interest. That move is likely to give the Canadian dairy giant more financial flexibility and let it focus on higher-return opportunities.
Despite Canada-U.S. trade uncertainty in the short term, Saputo’s improving margins, stronger cash flow, portfolio simplification, and disciplined capital allocation make it an appealing stock for long-term investors.
