Canada sends 75% of its exports to the United States and tariffs are a major risk to the Canadian economy.
Financial, telecom, real estate, energy and materials shares account for roughly two-thirds of Canada’s main stock market index, the S&P/TSX Composite, and those sectors would likely escape the direct impact of tariffs or benefit from carve-outs.
But analysts say there could be an indirect hit to earnings if the Canadian economy slips into recession.
Shares of trade-sensitive companies have already fared badly since Trump was elected on Nov. 5, with plane maker Bombardier Inc down about 19% along with declines for auto parts, steel, lumber and dairy product stocks.
“All this uncertainty around trade and geopolitical tensions has definitely gotten gold back on the front burner,” said Greg Taylor, a portfolio manager at Purpose Investments.
“Across our multi-asset funds we have been adding gold…
