Fretting Over Tariff Hikes? These 2 TSX Stocks Will Fortify Your Portfolio Amid Market Turmoil

The Toronto Stock Exchange experienced a swift downturn from April 2nd to April 8th, 2025, due to events unfolding in the ongoing trade dispute between China and the U.S.

S&P/TSX Composite Index

dropped by 11.07% over a short period. When Donald Trump announced a 90-day suspension of tariffs on all other nations, it triggered a significant upsurge.

Subsequently, the benchmark index of the Canadian stock market rebounded sharply. From April 8 through May 16, 2025, the index surged by 15.40%, placing it near record-high levels. Recently, the United States and China jointly declared their intention to decrease mutual tariff rates. However, it’s uncertain what effect this will have on the tariffs levied by the U.S. on Canadian products following the conclusion of the current 90-day truce period.

It’s impossible to forecast what might occur. The one certainty I have is that the market will keep evolving.

volatile

If you’re concerned about market volatility and wish to safeguard your investment capital, consider these two stocks as a way to add some steadiness to your self-managed investment portfolio.

Alimentation Couche-Tard

Alimentation Couche-Tard

(

TSX:ATD

It is a corporation with a market capitalization of $65.45 billion, owning and operating a chain of convenience stores spanning multiple international markets. Its primary sources of income include sales of groceries, fresh foods, drinks, tobacco items, car wash services, fast-food outlets, and various retail goods. Additionally, the firm offers road transport fuel, maritime fuels, stationary power solutions, and chemical products.

Alimentation has encountered challenges because of an attempt to acquire 7-Eleven, a move that could falter due to antitrust worries raised by Japanese regulators. Should this transaction go ahead, it could significantly bolster ATD stock. Regardless of whether the acquisition happens or not, the firm may still profit from reallocating funds intended for the purchase towards enhancing other operational areas. In either scenario, it remains a stock with potential upside in a volatile market, particularly considering its current valuation appears somewhat advantageous.

undervalued

16.47 price-to-earnings (P/E) ratio.

Loblaw Companies

Loblaw Companies

(

TSX:L

Another enterprise within the same sector is this $66.26 billion market-capitalization firm, which stands as one of Canada’s premier managers of grocery outlets, pharmacies, and general merchandising shops. Its strongest footprint lies in Ontario with significant holdings also present in British Columbia and Quebec. In addition to expanding its retail activities, Loblaw manages a financial services division providing secured investment products like GICs along with credit card facilities.

Loblaw employs a protective business strategy that has enabled the company to navigate challenges effectively. By concentrating on vital health items and food staples, Loblaw has managed to maintain steady cash flow and increase revenues consistently. The firm prides itself on remarkable performance.

fundamentals

With a robust financial position, this stock trades above a 30 P/E ratio and isn’t considered undervalued. However, it has a clear potential for substantial long-term growth.

Foolish takeaway

Despite the circumstances appearing better and the S&P/TSX Composite Index’s performance suggesting an improvement,

bull market

It’s reasonable for many investors to consider shifting their portfolios towards more defensive assets.

Given the increased geopolitical and macroeconomic uncertainties at present, consumer defensive stocks appear to be smart purchases. In light of these conditions, adding shares from Alimentation Couche-Tard and Loblaw to your investment portfolio seems like an excellent choice.

The post

Concerned About Tariffs Taking Effect? 2 TSX Stocks to Secure Your Portfolio Amid Uncertain Markets

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Fool contributor

Adam Othman

does not hold any shares in the companies listed above. However, The Motley Fool holds stakes in and endorses Alimentation Couche-Tardy. Furthermore, The Motley Fool states that they have a

disclosure policy

.