Uncertainty round commerce and tariff coverage out of the U.S. stays excessive, with already-enacted tariffs (and persevering with threats of latest tariffs) upsetting the beforehand established and reasonably constant international order on this entrance. President Trump has enacted a sequence of tariffs aimed toward decreasing commerce imbalances in the USA, with impacts on each American shoppers and buying and selling companions overseas.
As one of many largest buying and selling companions of the U.S., quite a lot of Canadian shares might see continued draw back in 2026, if tariffs stay in place and/or are ratcheted up. I’ve been watching developments on this entrance carefully, and there are three shares specifically I feel Canadian traders will wish to pay shut consideration to for the rest of the 12 months.
Magna Worldwide
Main international auto components provider Magna Worldwide (TSX:MG) is one Canadian firm that earns the overwhelming majority of its income by way of automobiles produced for the U.S. market.
With the U.S. automotive trade seemingly one of many key areas of focus for the Trump administration by way of job preservation, and a historic precedent for shielding this trade in instances of turmoil, many specialists consider the present tariffs in place on vehicles are unlikely to be lifted anytime quickly.
With a 35% tariff fee on Canadian exports put in place in August 2025 nonetheless in impact, squeezed margins for corporations like Magna initially hit this inventory onerous in April of final 12 months (upon announcement). Nevertheless, this inventory has been flying because the begin of the 12 months and has greater than doubled from its post-tariff-announcement lows.
That stated, if margins do compress additional within the coming quarters as tariff pressures start to hit shoppers tougher, it is a inventory I feel traders might wish to watch out with at this time limit.
First Quantum Minerals
One other sector the Trump administration has proven an affinity for shielding is the minerals sector, with First Quantum Minerals (TSX:FM) being among the many largest copper and nickel producers Canada has to supply.
Like the opposite corporations on this listing, First Quantum’s share worth has been tearing greater following the onset of base metals tariffs introduced final 12 months. What these tariffs have finally executed is raised the prices for EV battery and infrastructure patrons, with stable demand for these minerals outpacing earlier considerations that First Quantum might see an actual beating final 12 months.
As is the case with the opposite two names on this listing, I’m taking a cautious method to the First Quantum’s rally. I feel the Trump administration will do as a lot as attainable to onshore manufacturing of key battery minerals, although there’s a stable short-term funding thesis backing up this rally.
I feel the underside line on an organization like First Quantum actually is whether or not traders are extra involved about tariffs than they’re about commodity costs (which have been on the rise, and a tailwind for First Quantum). If we proceed to see copper and nickel costs soar, it is a inventory that might climate the storm – we’ll see.
Teck Sources
Within the steelmaking coal and copper enterprise, Teck Sources (TSX:TECK.B) is the ultimate firm rounding out this listing.
Now, Teck is an organization I’ve been bullish on for a very long time, and I don’t essentially assume that tariffs will find yourself being a long-term driver of draw back on this title. Nevertheless, within the brief time period, something is feasible, and we did see a drawdown by way of the tip of final 12 months in shares of Teck inventory.
That stated, with traders trying to amplify publicity to all industrial metals, there are offsetting components that might result in volatility (and far greater or decrease costs, relying on how the geopolitical atmosphere adjustments). Personally, there are three corporations I’m going to keep away from in the intervening time, with tariff overhang danger being one of many key components to look at.