Equities in Canada’s largest centre fell to their lowest levels in nearly two months, as investors assessed President Donald Trump's imposition of new tariffs on the United States' three biggest trading partners.
The TSX Composite Index plummeted 609.71 points, or 2.4%, to move into Tuesday afternoon at 24,391.85.
The Canadian dollar slid 0.07 cents to 68.92 cents U.S.
Trump's 25% tariff on imports from Mexico and Canada took effect at 12:01 a.m. EST, along with a doubling of duties on Chinese goods to 20%.
China responded with additional tariffs of 10%-15% on certain U.S. imports from March 10. Canada and Mexico, which have enjoyed a near tariff-free trade relationship with the U.S. for the past three decades, were poised to swiftly retaliate against their long-standing ally.
Prime Minister Justin Trudeau announced that Ottawa would impose immediate 25% tariffs on $30 billion worth of U.S. imports. Furthermore, should Trump's tariffs persist for 21 days, an additional $125 billion in tariffs would be enacted.
In company news, the Yomiuri newspaper reported that Seven & i plans to reject the $47-billion takeover offer from Canada's Alimentation Couche-Tard and instead seek to enhance corporate value on its own.
Couche-Tard shares dropped $1.01, or 1.4%, to $69.80.
Magna International fell $2.25. or 4.4%, to $49.03. after BofA Global Research downgraded its rating to "neutral".
Teck lost $1.68, or 2.9%, to $55.69, after the miner's CEO said it was looking to sell zinc to Asia instead of the U.S. to contend with new tariffs.
ON BAYSTREET
The TSX Venture Exchange lost 13.43 points, or 2.3%, to 581.81.
All but one of the 12 TSX subgroups lost ground, with information technology swooning 3.5%, financials poorer by 2.8%, and energy fumbling 2.8%.
Only gold held out against the negative tide, gaining 0.2%.
ON WALLSTREET
U.S. stocks saw losses mount on Tuesday as President Donald Trump’s tariffs on key trade partners took effect and prompted retaliatory measures, triggering a global trade war and escalating fears of the national economy cracking.
The Dow Jones Industrials withered 659.22 points, or 1.5%, by noon EST Tuesday at 42,532.02.
The S&P 500 index declined 76.4 points, or 1.3%, to 5,773.32.
With Tuesday’s losses, the much-broader now trades below where it finished on Election Day in November, when voters headed to the polls to return Trump to office. Traders will closely monitor Trump’s address to Congress on Tuesday night for statements about the tariffs, which were a core pillar of his campaign.
Also, this week’s selloff pushed the S&P 500 into the red for 2025 and the Dow near flat on the year. The tariffs prompted a broad selloff on Tuesday. About four out of every five S&P 500 stocks traded down.
The NASDAQ Composite stumbled 155.6 points to 18,194.53, putting the tech-heavy index on track to close in correction territory, which is when it falls 10% from a recent high.
Tuesday’s nosedive comes after the U.S. instituted 25% duties on Canada and Mexico that took effect at midnight. Trump also slapped an additional 10% tariff on Chinese goods.
China retaliated with additional tariffs of up to 15% on some U.S. products. Canadian Prime Minister Justin Trudeau said his country would also put a 25% levy on U.S. goods. Mexican President Claudia Sheinbaum said the U.S.' southern neighbor would respond with tariffs and other tools that would be announced this weekend.
Shares of GM ditched 3% and Ford was lower by 2%, building on declines seen this year amid concerns that tariffs would raise costs. Chipotle, which sources about half of its avocados from Mexico, slipped more than 2%.
Tech names felt the brunt of investors’ recent shift away from U.S. stocks, underscoring the Nasdaq’s recent fall. Notably, artificial intelligence darling Nvidia pulled back nearly 1% in the session
Prices for the 10-year Treasury edged lower, lifting yields back to Monday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices slid 68 cents to $67.69 U.S. a barrel.
Prices for gold strengthened $19.30 an ounce to $2,920.40 U.S.
