Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInvestorTrump’s policies find an unlikely beneficiary: Canadian stocksThe U.S. President's tariffs and insults didn't spark a selloff. Rather, money poured into the Canadian stock marketAuthor of the article:All together, the Canadian stocks benchmark is on pace to outperform the S&P 500 index for a second straight year. Photo by Peter J. Thompson/PostmediaMere minutes after markets opened in Toronto on Monday, United States President Donald Trump said in a social media post that he would double tariffs on Canada’s automotive sector and he has proceeded to follow up with a barrage of insults targeting the country.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorRather than sparking a selloff, money continued to pour into the Canadian stock market, as it has all year.The episode highlights a stark irony: Trump’s policy choices actually have helped the Canadian market outperform the U.S. for two straight years, even as he ratchets up his verbal attacks.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againThe iShares Core S&P/TSX Capped Composite Index ETF, the largest exchange-traded fund listed in Toronto that tracks Canadian stocks, saw another day of net inflows on Monday as it heads for an 11th straight month of positive flows. And it’s not just Canadians buying in their own market. Statistics Canada data shows net inflows into Canadian securities every month this year.“These things have kind of lost their shock and awe value,” Neil Linsdell, head of investment strategy in Canada for Raymond James Ltd. in Montreal, said of Trump’s tariff threats. Linsdell is keeping his target on the S&P/TSX Composite index at 37,000 points for the year, expecting tariffs to be both short-lived and a relatively low probability of a full-blown escalation.Indeed, strategists across Toronto’s Bay Street, including at the Bank of Nova Scotia and IG Wealth Management, encouraged investors to “stay calm” following Trump’s latest tariffs and insults targeting Canada. Data indicate traders didn’t need the encouragement, as total trading volume on the Toronto Stock Exchange dropped below the 100-day moving average.“We’ve seen this movie before, straight out of the bully/bluff playbook,” said Brian Madden, chief investment officer at First Avenue Investment Counsel Inc. He said the breakdown in trade talks will have a short-term effect on investor sentiment in Canada and direct hit to trade-exposed sectors.On the other hand, Madden said he sees a handful of other Trump administration policies providing a boost to a swath of Canadian stocks. The Iran war has lifted oil prices, benefiting the energy producers that account for a nearly 17 per cent weighting in the S&P/TSX. Another tailwind: Gold prices have rallied amid rising U.S. government debt and the Treasury Department’s efforts to rein in bond yields, lifting the Canadian benchmark’s materials sector, which weighs in at nearly 20 per cent of the S&P/TSX.“The TSX is performing not in spite of the Trump policies, but because of the Trump policies,” said Philip Petursson, chief investment strategist at IG Wealth Management in Toronto.Put it all together and the Canadian stocks benchmark is on pace to outperform the S&P 500 index for a second straight year, rising 16 per cent so far in 2026 in U.S. dollar terms compared with a 12 per cent gain for the U.S. gauge. The S&P/TSX, which closed at another record on Tuesday, hasn’t beaten the S&P 500 in back-to-back years since the recovery from the financial crisis, in 2009 and 2010.The top-performing stock in the Canadian index this year, Bird Construction Inc., has climbed 134 per cent as it benefits from Ottawa’s response to Trump’s tariff threats. Prime Minister Mark Carney has pushed to accelerate major infrastructure projects, including new mines, pipelines and port expansions, to diversify trade away from the U.S. That has boosted construction firms and industrial equipment dealers such as Caterpillar-dealer Finning International.“That momentum is going to continue because it seems like we don’t have a dependable trade partner,” said Laura Lau, chief investment officer at Brompton Corp.The recent stretch of gains has some investors taking profits.“One thing I’ve done is just gotten a little bit more defensive across the board as we head into September, which is normally a little bit more volatile anyway,” said Greg Taylor, chief investment officer at PenderFund. “This is a good chance to be a little more defensive.”Still, Taylor said he expects any weakness to be short-lived. He intends to redeploy cash if there’s a broader market pullback and a return to the negotiating table by Canadian and American officials. “We could be setting up for a decent run into year end,” he said.That’s a view shared across Bay Street.“Relief from the tariffs will be like a sugar rush and the markets will rip when we get this behind us,” First Avenue’s Madden said. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.