The threat of tariffs on Canadian goods into the U.S. simply isn't going away. U.S. President Donald Trump recently threatened a new, higher rate of tariffs on Canada goods, at 35%, which would be in effect on Aug. 1. Trump previously imposed 25% tariffs although there were exemptions for exports that were in compliance with the existing trade agreement involving Canada, the U.S., and Mexico.

While negotiations between Canada and the U.S. remain ongoing on trade, the issue of tariffs simply doesn't appear to be going away. And it may weigh on stocks for not just this year but over Trump's entire term in office.

One way for Canadian investors to minimize their risk and exposure to that may be to invest in a relatively safe stock such as Loblaw Companies Limited (TSX:L). As a leading Canadian grocer, Loblaw sources many of its goods locally, and it also sells products that consumers need on a day-to-day basis. Even if some of its costs go up due to tariffs, it can pass those on to consumers and know that its financial results will still be fairly stable.

Loblaw stock has risen by 18% this year as it has been a safe haven type of stock for investors. In addition to being safe, it also offers a dividend that yields around 1%.

While it may not be the cheapest stock right now, trading at 31 times its trailing earnings, it can be a good place to park your money, especially amid all the uncertainty involving Canada-U.S. relations.

COMTEX_467323678/2559/2025-07-14T11:12:10