Canada's main stock index fell to its lowest level 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 523.65 points, or 2.1%, to open Tuesday at 24,477.92.
The Canadian dollar inched higher 0.05 cents to 69.04 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 28 cents to $70.53.
Magna International fell $2.75. or 5.4%, to $48.53. after BofA Global Research downgraded its rating to "neutral".
Teck lost $2.36, or 4.1%, to $55.01, 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 12.07 points, or 2%, to 583.17.
All but one of the 12 TSX subgroups lost ground, with energy fumbling 3.7%, while information technology skidded 2.8%, and financials gave up 2.5%.
Only telecoms held out against the negative tide, gaining 0.1%.
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, escalating fears of a global trade war and a national economy in distress.
The Dow Jones Industrials tumbled 611.27 points, or 1.4%, to begin Tuesday at 42,579.97.
The S&P 500 index declined 84.39 points, or 1.4%, to 5,765.33.
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 NASDAQ Composite stumbled 252.22 points, or 1.4%, to 18,097.97, 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%.
Prices for the 10-year Treasury edged higher, lowering yields to 4.15%, compared to Monday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices slid $1.11 to $67.26 U.S. a barrel.
Prices for gold strengthened $15.20 an ounce to $2,916.30 U.S.
