The Best Canadian Stocks to Own in a Trade War

As trade tensions between Canada and the U.S. keep escalating, these two Canadian stocks look well-positioned to deliver stability and long-term growth.

Key Points
  • Canada's trade war with the U.S. is heating up again, making resilient Canadian stocks even more important for long-term investors.
  • Agnico Eagle (TSX:AEM) is using record profits and major growth projects to strengthen its position despite ongoing uncertainty.
  • Emera (TSX:EMA) is delivering steady earnings growth, expanding its business, and rewarding investors with a reliable dividend.

Canada’s trade relationship with the United States has become much harder to follow in 2026. Tariffs have been announced, delayed, challenged, restored, and expanded across several industries. The latest twist came earlier this month, when U.S. President Donald Trump announced a new 50% tariff on selected Canadian goods without a Canada-United States-Mexico Agreement (CUSMA) exemption.

That uncertainty could punish companies that depend heavily on cross-border supply chains. However, it could also make defensive businesses more valuable. That’s why it could be a good idea for long-term investors to focus on Canadian companies with durable demand, solid cash generation, and room to grow even when trade tensions rise.

In this article, I’ll discuss two such Canadian stocks that seem well-positioned to withstand the impact of ongoing trade disputes.

Warning sign with the text "Trade war" in front of container ship

Source: Getty Images

Agnico Eagle stock

The first stock I’d consider in a trade war environment is Agnico Eagle Mines (TSX: AEM), since gold could remain attractive even when economic and political uncertainty rises.

It’s a Canadian gold producer with mines in Canada, Australia, Finland, and Mexico. Currently, its shares trade at $199.86 per share, giving the company a market capitalization of $100.2 billion. AEM stock has risen 19% over the last year and 190% over three years. It also offers an annualized dividend yield of 1.3%.

The recent strength in Agnico’s shares has mainly been supported by its improving operating margins and strong gold prices. In the first quarter, the company realized an average gold price of US$4,861 per ounce, up sharply from US$2,891 a year earlier. That helped its net profit rise to US$1.7 billion in the latest quarter from just US$815 million a year ago.

Agnico’s cash generation improved, as its operating cash flow surged by nearly 30% year-over-year (YoY) to US$1.3 billion, while free cash flow increased 23% to US$732 million. Those gains came even though the company’s gold production fell to 825,109 ounces from 873,794 ounces.

While the July wall movement at its Barnat open pit adds some near-term risk, Agnico’s long-term growth outlook looks strong. The company expects Hope Bay to produce more than 400,000 ounces annually, while its Finland expansion could create a 500,000-ounce regional hub.

For investors seeking a Canadian stock that could hold up well during periods of trade uncertainty, Agnico Eagle stock remains an attractive long-term choice.

Emera stock

For a more defensive approach to trade tensions, you can also consider Emera (TSX: EMA), as it offers steady demand through regulated electric and gas utilities. This Halifax-based firm serves about 2.7 million customers across Canada, the United States, and the Caribbean.

Following nearly 20% gains over the last year, its shares now trade at $75.54 per share, with a market cap of $23.3 billion. It also carries an annualized dividend yield of 3.8%.

Emera’s first-quarter results showed why regulated utilities could hold up well during economic and trade uncertainty. During the quarter, its adjusted earnings rose 7% YoY to $1.37 per share from $1.28. Similarly, its adjusted net profit climbed 9% to $415 million with the help of stronger results at Emera Energy Services, Peoples Gas, and Tampa Electric.

Meanwhile, the company also deployed more than $870 million of its $4 billion 2026 capital plan and increased operating cash flow by 6%.

Emera is attractive in a trade war because electricity and natural gas demand are essential, while regulated rates could support more predictable earnings. In addition, its growing asset base, solid dividend, and steady capital program make it an even more reliable Canadian stock to consider now.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

How I’d Build $200 a Month in Tax-Free TFSA Income With Peyto Exploration & Development and Automotive Properties REIT

These two monthly-paying dividend stocks present compelling opportunities for income-seeking investors.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

This ETF Yields 3.4% and Pays You Monthly: It’s a Smart One for Retirement Savings

Here’s why this simple Canadian dividend ETF and its monthly payments make it an ideal investment for your retirement savings.

Read more »

Two senior friends playing beat tennis on sand tennis court
Dividend Stocks

I Found the Ideal Retirement TFSA Stock Paying 5.7%

An ideal retirement TFSA stock not only pays a high yield but must also have secure cash flows from a…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is Now a Good Time to Start Investing in Canada? What to Consider

Here’s why now can be a good time to start investing in Canada and what to consider as you build…

Read more »

House models and one with REIT real estate investment trust.
Dividend Stocks

An Ideal TFSA Stock for November, Paying 5.2% Each Year Into Your Retirement Fund

With a 5.2% dividend yield paid monthly, this Canadian stock could help you build a recurring retirement income stream while…

Read more »

man in bowtie poses with abacus
Dividend Stocks

How to Read a Payout Ratio in 60 Seconds

Understand the payout ratio and its significance. Learn how it helps assess dividend stocks in just one minute.

Read more »

earn passive income by investing in dividend paying stocks
Dividend Stocks

How to Set Passive Income Goals You Can Actually Reach

Setting passive income goals is easy, but it should be realistic as to how much you can really set aside…

Read more »

Nurse talks with a teenager about medication
Dividend Stocks

I Found a Dividend Stock That Pays 4.6% Monthly Like an ATM

The Richards Group's monthly dividend yields 4.6%. The small-cap stock's high-margin healthcare pivot makes this passive income source an attractive…

Read more »