Written by Rajiv Nanjapla at The Motley Fool Canada
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.
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.
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