Canada’s main stock index moved lower on Tuesday as investors felt the weight of new potential US tariffs on steel and aluminum imports. Losses on the TSX were led by mining shares while energy did its bit for the gaining side. E-commerce giant Shopify (TSX:SHOP) beat Q4 revenue estimates and rose by 3.08 per cent.
On Monday, President Donald Trump imposed a uniform 25 per cent tariff on steel and aluminum imports, with no exceptions, to bolster US industries. However, this move could potentially ignite trade disputes. A White House official confirmed that the new tariffs will be effective from March 4th.
Meanwhile, US stocks were split as investors responded to cautious remarks from Federal Reserve Chairman Jerome Powell regarding interest rates. There are ongoing concerns about the economic outlook amid US tariffs and the potential for a global trade war to escalate. Important inflation reports are also expected later this week.
The Canadian dollar traded for 69.99 cents US compared to 69.88 cents US on Monday.
US crude futures traded $0.87 higher at US$73.19 a barrel, and the Brent contract rose $1.00 to US$76.87 a barrel.
The price of gold was down US$7.88 to US$2,898.82.
In world markets, the Nikkei remained at ¥38,801.17, the Hang Seng was down 227.12 points to HK$21,294.86, the FTSE was up 9.59 points to ₤8,777.39, and the DAX was up 126.09 points to €22,037.83.
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(Top image generated with AI.)