Trade tensions between Canada and the United States are becoming harder for investors to ignore. Washington has taken a tougher stance on Canadian trade, while Ottawa is responding with dollar-for-dollar counter-tariffs on $27.6 billion of U.S. goods effective September 8.
If this dispute drags on, higher costs, weaker business confidence, and more market volatility could follow. For Canadian investors, this may be a good time to add some defensive strength without giving up on long-term growth potential. That is especially true of top Canadian stocks linked to everyday necessities or assets that could hold their value during uncertain periods.
In this article, I’ll highlight two such stocks that could help protect your portfolio as the Canada-U.S. trade war intensifies.
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Loblaw stock
If you want more stability as trade uncertainty builds, Loblaw (TSX: L) could be a reliable stock to consider. This Brampton-based company is Canada’s largest food and pharmacy retailer.
After gaining 12% over the last 12 months, Loblaw stock currently trades at $63.31 per share with a market cap of $73.3 billion and a 1% annualized dividend yield.
A big part of that resilience in Loblaw stock comes from the nature of Loblaw’s business. Consumers still need groceries, prescriptions, and other everyday essentials even when economic conditions become less certain.
That strength showed up again in its latest results. Loblaw’s second-quarter retail revenue climbed 4.1% year over year (YoY) to about $15 billion. Its food retail sales increased 3.3%, supported by higher customer traffic, larger basket sizes, and e-commerce growth. At the same time, the company’s drug retail sales rose 6.1%, helped by continued strength in specialty and chronic prescriptions as well as beauty and over-the-counter products. As a result, the retailer’s adjusted earnings rose 11.9% YoY to $0.66 per share.
Loblaw is also investing heavily to keep growing. It plans to spend about $2.4 billion on capital expenditures in 2026 and now expects to open roughly 75 new locations, up from around 70 previously planned.
Interestingly, the company’s newer stores are generating strong double-digit same-store sales growth as they mature. That gives Loblaw another growth driver even while consumers remain careful with spending.
Overall, Loblaw’s defensive business, strong cash flow, and expanding discount footprint make it an attractive Canadian stock for investors trying to reduce portfolio risk during a prolonged trade dispute.
Agnico Eagle stock
While Loblaw brings stability through necessities, Agnico Eagle Mines (TSX: AEM) approaches portfolio protection from another angle by giving investors exposure to gold. This major Canadian gold producer has operations in Canada, Australia, Finland, and Mexico.
At the time of writing, its stock traded at $283.22 per share with a market cap of $143.4 billion and a 0.9% annualized dividend yield. The company’s shares have surged 38% over the last year. This rally has been supported by strong gold prices and solid operating execution.
Agnico Eagle produced 855,816 ounces of gold and realized an average gold price of US$4,483 per ounce in the second quarter. The gold miner’s net profit for the quarter climbed nearly 50% YoY to US$1.6 billion, mainly because higher realized gold prices boosted operating margins.
Meanwhile, the miner continues to invest in projects such as Hope Bay, Odyssey, Detour Lake underground, and Upper Beaver. Its longer-term strategy targets a 20% to 30% increase in annual gold production over the next decade.
For investors worried that the Canada-U.S. trade standoff could keep markets volatile, Agnico Eagle could provide gold exposure, strong cash generation, and a healthy balance sheet. Those qualities make it an attractive portfolio hedge while still leaving room for long-term growth.
