The U.S. will impose a 50% tariff on C$20 billion of Canadian goods, with energy, materials and financial stocks on the Toronto Stock Exchange (TSX) most exposed to the new measures. Canada has signaled it will retaliate.
Energy exporters are among the most directly affected. Enbridge, which operates major pipelines into the U.S., reported C$65.19 billion in fiscal 2025 revenue and a 10.9% one-year return. Suncor Energy, with C$48.91 billion in revenue and a 72.6% one-year gain, faces higher costs on U.S. refining and export operations. Canadian Natural Resources, with C$38.76 billion in revenue and a 71% one-year return, and Cenovus Energy, at C$49.70 billion in revenue and a 98.1% one-year gain, both derive significant revenue from U.S. crude sales and refining margins.
Materials companies also stand in the crosshairs. Teck Resources, a top U.S. steel and metals exporter, posted C$10.76 billion in revenue and a 112.3% one-year return, making it a prime tariff target. The company’s U.S. exposure is a key risk factor for investors tracking trade policy shifts.
Financials are not immune. Royal Bank of Canada, with C$62.24 billion in revenue and a 53.8% one-year return, operates substantial U.S. commercial banking and capital markets businesses. The Toronto-Dominion Bank, generating C$63.27 billion in revenue and a 63% one-year gain, ranks among the top 10 U.S. retail banks by deposits, leaving its U.S. profit engine exposed. Bank of Nova Scotia, with C$31.64 billion in revenue and a 58% one-year return, maintains a U.S. and Latin America focus that could still face indirect pressure.
Transportation names are also in the spotlight. Canadian Pacific Kansas City, with C$15.08 billion in revenue and a 30% one-year return, operates an extensive U.S. rail network that could be disrupted by supply chain frictions. TC Energy, with C$15.24 billion in revenue and a 27.4% one-year return, remains a wildcard amid renewed U.S.-Canada pipeline politics, particularly given its Keystone system.
The tariffs take effect as Canadian financials report earnings. On August 24, 2026, Bank of Montreal and Bank of Nova Scotia posted strong third-quarter results, with the latter’s shares rising 4.56% after the release. The move comes as U.S. crude prices declined, even as Canadian oil exporters like Suncor and Canadian Natural Resources retain leverage to U.S. demand. Pipeline operators, including TC Energy, face renewed political scrutiny as cross-border energy trade resurfaces as a policy flashpoint.
The measures underscore the growing trade friction between the two nations and its direct impact on TSX-listed exporters with substantial U.S. operations.
