Canadian investors have been pumping a record amount of money into U.S. markets, despite the ongoing trade tensions between the two countries.
Canadian investment In US Hits Record High In 2025
The investment surge from Canada to the U.S. has reached an all-time high in 2025, despite the ongoing trade disputes between the two countries. Canadian investors have directed C$59.9 billion ($43.3 billion) into U.S. stocks and bonds from January to May, as per data from National Bank of Canada Financial Markets. This is the highest amount of investment in U.S. securities by Canadian investors in a year-to-date period since at least 1990, reported Fortune.
Meanwhile, foreign investment in Canadian securities fell by $13 billion during the first five months of the year. Warren Lovely, managing director of National Bank Financial, noted that the “Buy Canadian” sentiment doesn’t seem to apply to investment portfolios, with Canadian investors significantly increasing their U.S. securities holdings.
Buy Canadian Drive Hits US Alcohol, Tourism sectors
The boycott of American products and call for buying Canadian did impact the U.S. liquor and tourism industry to a great extent.
U.S. alcohol exports to Canada, in the first half of 2025, dropped by over 60%, causing hundreds of millions in lost revenue for American spirits and wines, even impacting giants like Constellation Brands Inc. (NYSE:STZ) and Molson Coors Beverage Co. (NYSE:TAP)
Meanwhile, in late March, Air Canada reported that bookings to U.S. cities were down 10% compared to the same period in past years.
Moshe Lander, a former senior economist for the Government of Alberta, told Fortune that the decision to invest in U.S. companies and the desire to boycott American companies serve different purposes. He stressed that the boycott is more of an emotional response, while investment decisions are driven by practicality and the desire for diversification.
However, Lander said that "Buy Canadian" movement would die down soon as it is becoming “unsustainable” for the Canadian economy.
Carney Eases Tariffs After Trump Call
This surge in U.S. market investments from Canadian investors comes amid a backdrop of strained trade relations between the two countries.
Earlier this week, Canada’s Prime Minister Mark Carney announced a reduction in retaliatory tariffs on U.S. goods complaint under US-Mexico-Canada free trade agreement (USMCA), following a phone call with President Donald Trump. Washington welcomed the move calling it “long overdue.” Notably, levies on cars, steel, and aluminum would remain.
Prior to this, in July, Trump and Carney had agreed to explore a potential trade deal after the U.S. imposed a 35% tariff on non-USMCA goods. The ongoing discussions and the potential for a tariff reduction could be contributing factors to the continued interest of Canadian investors in the U.S. markets.
Price Action: The SPDR S&P 500 ETF Trust (NYSE:SPY) and Invesco QQQ Trust ETF (NASDAQ:QQQ), which track the S&P 500 index and Nasdaq 100 index, respectively, surged 10.35%, and 12.23%, each, according to Benzinga Pro data.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
