After almost seven years, the government of the United States entered into a shutdown after legislators had not reached a financing deal. Although essential government services will continue, non-essential services will probably be suspended. And investors around the world are bracing themselves for impact.
This also applies to investors here in Canada, with various companies that are probably affected by the closure. Although some Canadian companies can struggle because of cross -border trade, others can be beneficiaries. So let’s look at three Canadian shares that can be influenced, positive or negative, by an American government closure.
Mg
First, we have Magna International (TSX: MG), a manufacturer of car parts that are directly bound to many American companies. Although the company relies on many American companies, the exposure to autoshut chain Magna could make a potential beneficiary of our shattering, together with Supply Chain support for electric vehicles. And it couldn’t come at a better time.
The recent WINST report from MG shows that the Canadian company has shown incredible operational improvements and cost discipline at a time when the sale has fallen. Currently, the Canadian shares continue to act at a low forward price-gain ratio, despite increasing its income and reducing his debt. In addition, investors can take a solid dividend yield of 4.1%!
For investors who are looking for growth and income in this case, with direct exposure to North -American car supply and the potential for upward during Onshoring, Magna could be a solid position to take during this closure.
Cae
Another Canadian stock to watch is Cae (TSX: CAE), who has many cross -border defense contracts. The Canadian shares are located at the intersection between the recovery of civil aviation and the strong defense expenditure. The increase in the US and the related defense budget have created a ridge for the stock, whereby aviation training continues to rise. It is therefore a stable Canadian shares to look at, especially after income.
In the first quarter of 2026, sales growth saw up to $ 1.1 billion, with the rising business income, which resulted in a profit margin of 12.2%. It now also has a backlog of $ 19.5 billion. The Canadian shares act with a premium with a profit of 31.6 times, but the net result remains robust and margins, making it a really defensive stock.
CAE shares therefore offers a higher quality, higher multiple multiple for exposure to defense and aviation training. It is great for investors who want recurring income with an advantage of the defense. This makes it a solid core possession for long -term investors who are willing to wait potential volatility during this closure.
CP
Finally we have Canadian Pacific Kansas City (TSX: CP), which facilitates trade by using its cross -border rail network to gain access to the American market. It is the only North -American truck that extends from Canada to Mexico, which benefits from higher domestic production, intermodal growth, energy and bulk shipments in the US.
CP has again demonstrated the last few quarters, with a very high profitability and a strong operational cash flow. Nevertheless, it is traded with a reasonable profit of 18.9 times, with a quarter of growing 36% on an annual basis. It is therefore a high -quality money generator and part of a duopoly in Canada at railway companies.
This closure can possibly harm the company in the short term while government employees are on the sidelines. In the long term, however, this can offer value for investors who want to come to a solid stock in the long term, while they benefit from dividends and returns.
Bottom Line
Investors must keep an eye on this shutdown to keep an eye on whether it looks like it will take. However, do not forget that this is probably a short -term problem that could result in a long -term profit. MG, CAE and CP all benefit from cross -border trade. So coming in during a dip is perhaps the best option to enjoy enormous growth in the coming years and the coming decades.
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