📈 Canada $2.71 Trillion Investment in U.S. Stocks and Bonds in 2024

As of December 2024, Canadian investors held $2.71 trillion in U.S. corporate stocks, Treasury securities, and bonds. This included $1.96 trillion in corporate stocks, $514 billion in Treasury and agency bonds, and $234 billion in corporate and other bonds. In contrast, U.S. investors held $914 billion in Canadian corporate stocks, Treasury securities, and bonds, resulting in a net investment of $1.8 trillion by Canada in U.S. financial assets.

Trade disruptions between the U.S. and Canada—via tariffs or other measures—could reduce Canadian investment in U.S. stocks and bonds, impacting the U.S. market. Lower trade flows may hurt corporate earnings, particularly in key sectors like automotive and energy. A weaker Canadian dollar could further discourage investment, while market uncertainty may drive volatility. If Canadian investors reallocate capital elsewhere, reduced demand for U.S. financial assets could put downward pressure on stock prices. The extent of the impact would depend on the severity and duration of trade restrictions.