Canada’s main stock index declined on Tuesday following the implementation of new tariffs by US President Donald Trump on the country’s top three trading partners, sparking a global trade war. The 25 per cent tariff on imports from Mexico and Canada, along with a doubling of duties on Chinese goods to 20 per cent, took effect at 12:01 a.m. EST.
In response, China imposed additional tariffs of 10 per cent to 15 per cent on certain US imports starting March 10th. Canada and Mexico, which have benefited from a nearly tariff-free trade relationship with the US for the past three decades, were set to quickly retaliate against their long-time ally.
US stocks also sunk after a significant selloff on Wall Street, as the new tariffs on Canada, Mexico, and China led to retaliatory measures from these countries.
The Canadian dollar traded for 69.27 cents US compared to 68.81 cents US on Monday.
US crude futures traded $0.14 lower at US$68.23 a barrel, and the Brent contract lost $0.57 to US$71.05 a barrel.
The price of gold was up US$22.45 to US$ 2,914.14.
In world markets, the Nikkei was down 454.29 points to ¥37,331.18, the Hang Seng was down 64.50 points to HK$22,941.77, the FTSE was down 112.31 points to ₤8,759.00, and the DAX was down 820.21 points to €22,326.81.
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(Top image generated with AI.)