Canadians Load Up on US Stocks Despite Donald Trump’s Trade War

Canadian investors have significantly increased their exposure to US equities, injecting C$124 billion ($89.7 billion) into US stocks in 2025, marking the largest yearly inflow since at least the 1990s. This substantial capital allocation is notable as it occurs despite ongoing political tensions and trade disputes between the two nations, which have otherwise led to Canadian divestment in US real estate and product boycotts.

Analysis

A significant divergence has emerged between Canadian investor behavior and the broader geopolitical tensions with the United States. Despite ongoing trade disputes, tariffs, and political friction under the Trump administration, Canadian investors have channeled a record C$124 billion ($89.7 billion) into U.S. equities in 2025. This inflow, on track to be the largest since at least the 1990s according to National Bank of Canada Financial Markets, stands in stark contrast to other Canadian actions, such as divesting from American real estate and boycotting U.S. products. This decoupling suggests that Canadian capital allocators are prioritizing the perceived return potential and relative strength of the U.S. stock market over political or nationalistic sentiment. The magnitude of these flows represents a material source of support for U.S. equities and signals a strong conviction among a key international investor group that the investment case for American stocks outweighs the headline risks associated with trade policy.

Key Decisions for Investors

• Investors should view the substantial C$124 billion inflow from Canada as a strong technical tailwind for U.S. equities, indicating underlying market support that is currently resilient to political rhetoric.
• Monitor for any potential reversal in this trend, as an escalation or de-escalation of U.S.-Canada trade disputes could significantly impact these cross-border capital flows and investor sentiment.
• This divergence between investment flows and political sentiment suggests that investors should be cautious about making portfolio decisions based solely on geopolitical headlines, as market fundamentals and return-seeking behavior can be a more dominant driver.