Buy Canadian. I Am

How I'm investing in a brand new tariff-filled world

After months of hinting towards what most pundits on both sides of the border — your author included — thought impossible, newly-elected President Donald Trump made it official on Saturday.

He confirmed that Canada would be subject to 25% tariffs on all exports starting on Tuesday, with the exception of energy. Canadian oil would be only be subject to a 10% tariff. Mexico was also slapped with a 25% tariff on all products, and the administration announced an additional 10% tariff on Chinese goods.

Both Canada and Mexico responded with retaliatory tariffs. Canada’s response is it will tariff approximately $30B worth of U.S. goods on Tuesday, with additional tariffs slapped on some $125B worth of U.S. goods coming into effect on February 25th.

Both countries did this despite the threats of even higher tariffs if they responded.

These are truly dark times for Canada. 200 years ago, a nation trying to acquire Canada would show up with an army and a bunch of cannons, lobbing iron spheres over the walls of the city. These primitive methods were only partially effective; victory was actually achieved by the blockade that starved the city out.

They didn’t work back then, and they won’t work today.

I’m using war metaphors very intentionally here. Because of actions taken by the U.S. President, two of the greatest allies on the planet are at war. Economic wars are less costly in terms of human lives and military resources, but let’s not kid ourselves here. This is an attack on Canada, and we must respond. 

I’m doing my part. I have an epic baseball train/road trip planned for April, a journey that will see me visit 16 stadiums in 14 cities, all over the span of 3+ weeks. This is a true bucket list trip for me; I’ve always dreamed of seeing a game in all 30 MLB parks, and this will do a bunch of heavy lifting needed to make that a reality. But that trip is currently on hold, and will be canceled if tariffs are still in place in March.

I realize that one person cancelling one vacation won’t be enough to move the needle. My move will be only symbolic. But if thousands of Canadians do the same thing — as they’re threatening to — then together, we can make a real difference.

I’ve heard from some of you, and you’re pissed. My buddy Jim — yes, that Jim — is seriously thinking about pulling all of his capital from the U.S. He’s considering selling positions in companies like Walmart, Coca-Cola, and Realty Income, stocks he’s held since 2009-10, and bringing that money home. I’ve encouraged him not to — since he winters in Puerto Vallarta, which basically runs on U.S. Dollars — but the sentiment is very real. He feels like his best friend came up and punched him in the nose, and he wants to react, dammit.

Canadians owe it to ourselves, our fellow countrymen, and to our country to respond. We must do our part. Only together will we get through this.

Here’s what I plan to do:

Buy Canadian — consumer products

I’ve seen myriad of lists already circulating telling people to avoid certain products at the grocery store, while loading up on others.

And it’s very obvious these lists are made by people with zero knowledge of the food industry. 

For instance, one list says to drink Walmart branded soda instead of Coca-Cola or Pepsi. But both Pepsi and Coca-Cola are bottled locally. In my case, the Diet Pepsi I drink is bottled right here in Edmonton, about a 20 minute drive away from my house. It’s bottled by local workers, delivered by local drivers, and put on the shelf by local merchandisers.

I’m also being told to stop buying Frito Lay potato chips, including other brands like Doritos, Tostitos, Miss Vickies, and Cheetos. But the same concept applies here. All Frito Lay products for Western Canada are made in either the Lethbridge or Taber plants in Southern Alberta. This part of Pepsico purchases potatoes from Canadian farmers, employs Canadian workers on the production lines, ships them to various warehouses using Canadian drivers, and are then sold by Canadian RSRs (Route Sales Representatives). Plus, Pepsi has thousands and thousands of Canadian shareholders.

Buying Frito Lay chips is every bit as Canadian as buying Old Dutch, or Covered Bridge. The benefit goes to Canadian workers first, and then to the millions of Canadians who own shares in Pepsi — including many of you.

The story is the exact same for so many of your favourite products at the grocery store. You’re not accomplishing anything by buying Danone yogurt over Yoplait, or Saputo branded cheese over Cracker Barrel. In most cases, these products have been made very quietly by your neighbours for decades. It’s the same with most kinds of meats and many kinds of vegetables. We grow a surprising amount of vegetables locally.

There are some places where you can boycott and make a difference in the grocery store — Campbells soups and broths, both General Mills and Kellogg cereals, and various types of fruits and vegetables, among others — but, for most of the major brands, they’re made in Canada by Canadians. I plan to adjust my consumption habits in a small way — orange juice is off the table, for instance — but not hugely. There’s already going to be enough hardship here, there’s no reason to further hurt your countrymen by having a large scale boycott on Doritos. Besides, Doritos are delicious, and we could use the treat.

Buy Canadian — investments

I believe that, as an investor, my money can have the biggest impact by investing in Canadian companies versus their U.S. counterparts.

So, on Monday, I will be buying shares of Canadian companies. If I venture outside of Canada for my investments, I will be purchasing shares in companies that do not have their headquarters in the United States.

I’m just one person, and I know that my moves will only be symbolic. But I’m also a proud Canadian who doesn’t like getting punched in the mouth, and so I will fight back. Even if it’s only in a small way.

I will also operate under the assumption that any trade war between Canada and the United States is only temporary, and that cooler heads will soon prevail. The North American economy is just too integrated for tariffs to be effective, and Trump risks alienating key battleground states like Michigan by letting the tariffs go on for too long.

Rather than trying to pick tariff winners and losers, I’ll be focused on stocks that get hit the hardest. I’m hoping for big sell-offs from companies like Canada’s railroads, pipelines, and exporters. I’ve had my eye on one auto parts company for a while now, hoping to buy shares if they ever got stupid cheap. That chance could come on Monday.

I’ll also be focused on sectors that are already a good value, with very little exposure to tariffs. I continue to think Canadian REITs are excellent buys today, especially considering how Canadian interest rates are expected to fall in 2025. There are various niche-y small-caps I follow that don’t have much tariff exposure at all, yet continue to be cheap. And I’d love a big ol’ sell-off from Canada’s oil sands giants, companies that are already cheap when compared to their reserves in the ground.

By putting our collective money to work in Canadian stocks — even if the future looks bleak — we’re helping our largest companies work through this dark time. Canadians have realized that it’s time to lessen our exposure to our largest trading partner, and we will make moves that ultimately make Canada’s economy stronger and more resilient.

Today is a great opportunity for Canadian companies, executives, elected officials, and investors. We can continue to diversify our economy away from exporting energy across the border. We can offer tax breaks to growth companies in tech and other sexy industries. We can use collected tariffs to invest in the Canadian economy. If the United States doesn’t value what we bring to the table, we’ll simply find somewhere else to sit.

I’m happy to be invested in this future, and I’m excited to contribute more to it on Monday. It’s the least I can do.

PS - One massive tariff winner I see nobody talking about

Tomorrow I’m going to send a special edition of the premium newsletter to paid members, outlining a stock that will be the massive beneficiary of long-term tariffs. 

This is a stock I’ve owned for years, one that pays a generous dividend and that trades at a dirt-cheap valuation today. But it flies under the radar, with so many Canadian investors having no idea it exists. And even if tariffs don’t stick around for months, I still think it’s a good buy.

This special edition of the newsletter will hit premium members’ inbox at 6:00am EST, well before the market opens. That will give them enough time to read, analyze, and decide if they want to get in. And it won’t be on the website either.

If you upgrade your membership today, that special report can be yours. Plus, as a premium subscriber, you’ll get the following:

  • In-depth research on Canada’s top dividend stocks, ranging from the largest companies to the smallest small-caps. If it’s a decent Canadian company and pays a dividend, we cover it

  • Two model portfolios, stuffed with dividend growth stocks for every investor

  • Full disclosure of Nelson’s portfolio, including buys and sells

  • Dividend safety scores for 110+ Canadian dividend stocks. Never be blindsided by a dividend cut again

  • Much, much more

Just $200 for a year’s worth of research from one of Canada’s top dividend analysts, straight to your inbox. It’s a great value. Upgrade today!