Tariff Talk Is Back: 2 Stocks I’d Buy and Hold

Tariff talk is back, with the Canada–U.S. relationship slipping into headline mode again. Washington has been signalling tougher negotiating tactics, and the latest flare-up even dragged the nearly finished Gordie Howe bridge into a broader fight over trade disputes. That kind of noise matters for Canadian investors as tariffs can show up fast in costs, confidence, and corporate plans. It can also hit the loonie, squeeze household budgets, and force companies to rethink sourcing.

The Bank of Canada also flagged that Canada is still adjusting to U.S. tariffs and a changing trade landscape, which is another way of saying this theme may stick around. So, how can Canadians fight back through investments? Let’s look at two Canadian stocks to consider.

MFI

Maple Leaf Foods (TSX:MFI) looks surprisingly well-suited for tariff chatter, as it sells everyday protein, not discretionary splurges. It runs prepared foods and poultry, and it spent the past year simplifying the story by spinning off its pork operations into Canada Packers while keeping a minority stake and a supply agreement. That move lets it focus on brand, efficiency, and steadier margins, which matters when trade costs or input prices jump around.

Its latest quarter showed real momentum. In Q3 2025, it grew sales to $1.4 billion and lifted adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to $171.4 million. Adjusted earnings per share rose to $0.49 from $0.18 a year earlier. Those aren’t fireworks, but a signal that execution tightened. If tariffs push food inflation higher, scale and shelf space can help it protect volume and pricing, even if the consumer stays cautious.

The near-term catalyst is operational follow-through, not a single headline. Management guided to 2026 adjusted EBITDA of about $520 million to $540 million, pointing to margin improvement and its Fuel for Growth initiative. Yet valuation stays reasonable for a steadier consumer name, trading at 17.5 times earnings and a 3.2% dividend yield. The risk is simple: input costs can spike, and price increases do not always stick if shoppers trade down or switch proteins.

WFG

West Fraser Timber (TSX:WFG) is a very different kind of tariff-sensitive Canadian stock. It sells lumber and engineered wood products, so it lives and dies by housing demand, mill costs, and trade rules. When tensions rise, lumber can get caught in the middle, and duties can land right on the income statement. That sounds scary, yet it can create the dislocation that long-term buyers sometimes like, because wood cycles do not stay down forever.

The recent earnings picture looks ugly, but the details matter. In Q3 2025, the Canadian stock posted sales of US$1.3 billion and a loss of US$204 million. Adjusted EBITDA came in at negative US$144 million, with the lumber segment hit by export duty expense tied to the finalization of the most recent softwood lumber duties review AR6. It was not a pretty quarter, but it explains why the Canadian stock can swing hard when trade rules shift.

The buy-and-hold appeal comes from balance sheet flexibility and the ability to wait out the cycle. It had US$546 million in cash and short-term investments at quarter end, and management flagged tariff uncertainty tied to the Section 232 investigation of U.S. tariffs based on national security concerns as a live risk. On valuation, it offers a 1.8% dividend yield, while trading at 0.88 times book value. The risk is that trade friction persists and housing stays soft longer than expected, keeping mills under pressure and results choppy.

Bottom line

So is this a buy-and-hold pair while tariff talk is back? It may be, but for different reasons. Maple Leaf can offer defensive demand and improving execution, yet it still faces cost shocks and picky consumers. West Fraser can offer deep value and upside when the housing market turns, yet it can punish you with brutal quarters and duty bills on the way there. Meanwhile, both can offer income from even smaller dividends with a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTMFI$27.07258$0.88$227.04Quarterly$6,984.06WFG$103.0367$1.78$119.26Quarterly$6,903.01

If you want to own both, think of it as a blend of steadier compounding plus cyclical optionality, and size it like a long game, not like a reaction to the loudest headline.

The post Tariff Talk Is Back: 2 Stocks I’d Buy and Hold appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends West Fraser Timber. The Motley Fool has a disclosure policy.