Canada’s main stock index experienced a significant drop on Monday as investors moved away from risky assets following the U.S. tariffs on Canada.
Effective Tuesday, Trump would have dropped a 25 per cent import tariff on all Canadian goods, excluding energy products, which may face a 10 per cent levy. In response, the Canadian government announced retaliatory tariffs on $155 billion worth of U.S. goods. The sectors on the TSX most affected by these tariffs, the financial and industrial sectors, saw the largest declines, along with most other sectors. Later on Monday, Trump said he would pause said tariffs.
Wall Street markets also fell after the U.S. and Mexico agreed to pause tariffs against each other for one month. U.S. automakers with North American supply chains led the decline, and Constellation Brands (NYSE:STZ), a major importer of alcohol from Mexico, lost 3.2 per cent.
The Canadian dollar traded for 68.65 cents US compared to 68.70 cents US on Friday.
US crude futures traded $0.30 higher at US$72.83 a barrel, and the Brent contract rose $0.13 to US$75.80 a barrel.
The price of gold was up US$17.70 to US$2,816.35.
In world markets, the Nikkei was down 1,052.40 points to ¥38,520.09, the Hang Seng was down 7.85 points to HK$20,217.26, the FTSE was down 90.40 points to ₤8,583.56, and the DAX was down 303.81 points to €21,428.24.
The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
(Top image generated with AI.)