Canada’s economy and stock market are showing surprising strength and resilience despite renewed tariff threats from U.S. President Donald Trump.
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U.S. stocks are deep in the red on July 11 after President Trump announced a 35% tariff on most imports from Canada beginning August 1, with the blue-chip Dow Jones Industrial Average down more than 200 points in early trading.
However, Canada’s benchmark Toronto Stock Exchange began the trading day on July 11 up 0.41% despite news of Trump’s renewed trade attack on America’s neighbor. So far this year, the Toronto Stock Exchange is up 9%, outpacing the 7% increase seen in the benchmark S&P 500 index in the U.S.
Canadian stocks that continue to perform strongly include well-known names such as Shopify (SHOP), Canada Goose (GOOS), and Thomson Reuters (TRI).
Strong Jobs Report
Canada’s stock market is getting a lift from a strong June jobs report. The latest data shows that the unemployment rate across the country dipped to 6.9% in June as the labor market added a net 83,000 jobs during the month. Both the number of new jobs and unemployment rate in June surprised to the upside, topping the consensus expectations of economists.
A poll of economists conducted by the Reuters news agency forecast the jobless rate in Canada would rise to 7.1% in June as employment levels slumped across the country. Instead, the June data reverses a slowdown in Canada’s labor market, with June posting the first significant job growth nationwide since January of this year.
Rate Cuts
Even the manufacturing sector, which has faced job losses in recent months amid Canada’s trade dispute with the U.S., saw a gain of 10,000 net new positions in June. Canada’s economy and stock market are also getting a tailwind as the Bank of Canada cuts interest rates more aggressively than the U.S. Federal Reserve.
So far in 2025, Canada’s central bank has lowered interest rates twice versus no cuts by the U.S. Federal Reserve. The Bank of Canada is widely expected to deliver a third interest rate reduction at its next policy meeting scheduled for July 30 of this year.
Is GOOS Stock a Buy?
The stock of Canada Goose has a consensus Moderate Sell rating among nine Wall Street analysts. That rating is based on six Hold and three Sell recommendations issued in the last three months. The average GOOS price target of $11.34 implies 18.88% downside from current levels.
