Canada’s main stock index slid on Thursday as trade tensions continued, despite US President Donald Trump temporarily exempting automakers from his 25 per cent tariffs on Canada and Mexico for one month.
On Wednesday, President Trump announced a one-month exemption for automakers from his strict tariffs on Canada and Mexico, provided they adhered to the terms of an existing free-trade agreement. However, Trump emphasized that his 25 per cent tariffs on Canadian and Mexican imports remained in place, urging both countries to act against fentanyl smuggling.
US stocks tanked even further as investors sought more clarity on President Trump’s latest US tariff measures and their economic impact. The major indices have each dropped more than 2 per cent this week as US tariffs on imports from Canada, Mexico, and China took effect. In response, Canada and China imposed their own retaliatory tariffs, while Mexico announced it would reveal its measures over the weekend.
The Canadian dollar traded for 69.93 cents US compared to 69.71 cents US on Wednesday.
US crude futures traded $0.12 higher at US$66.43 a barrel, and the Brent contract rose $0.25 to US$69.45 a barrel.
The price of gold was down US$4.90 to US$ 2,914.59.
In world markets, the Nikkei was up 286.69 points to ¥37,704.93, the Hang Seng was up 775.50 points to HK$24,369.71, the FTSE was down 61.69 points to ₤8,694.15, and the DAX was up 338.45 points to €23,419.48.
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(Top image generated with AI.)