01:14 PM EST, 02/03/2025 (MT Newswires) -- On Feb. 1, the U.S. federal government announced a 25% tariff on imports from Canada and Mexico, with a 10% tariff specifically on Canadian energy products. The Canadian federal government declared that Canada would implement retaliatory tariffs on U.S. goods totaling ~$155 billion.

National Bank believes that all companies in its coverage will adapt to higher costs, initially by increasing prices, and then by making necessary operational adjustments.

Within the staples, analyst Vishal Shreedhar sees Loblaw ( LBLCF ) as being best positioned to accommodate the challenges given a history of the grocery industry passing on price increases, and a high percentage of discount stores. Within the discretionary names, Shreedhar sees Dollarama ( DLMAF ) being best positioned to adapt given its low pricing.

Companies that will require more time to adjust include Premium Brands ( PRBZF ) in the staples and Groupe Dynamite ( GRGDF ) on the discretionary side.

Price: 137.47, Change: -0.06, Percent Change: -0.04