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 429,57 points, or 1.7%, to close Tuesday at 24,572.
The Canadian dollar regained 0.08 cents to 69.08 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 17 cents or 1.4%, to $70.64.
Magna International fell $1.83. or 3.6%, to $49.45. after BofA Global Research downgraded its rating to "neutral".
Teck Resources lost $1.47, or 2.6%, to $55.90, after the miner's CEO said it was looking to sell zinc to Asia instead of the U.S. to contend with new tariffs.
Financial stocks took a pounding, with Brookfield Asset Management stung $4.18, or 5.2%, to $76.72, while Brookfield Corporation was tagged $4.28, or 5.2%, to $77.71.
Techs were also roughed up, with Sangoma sinking 62 cents, or 8%, to $7.16, while Coveo Solutions plummeted 49 cents, or 7.5%, to $6.08.
Health-care issues tried to balance things out, with Sienna Senior Living forging ahead 29 cents, or 1.8%, to $16.08, while Chartwell Retirement Residences picking up 24 cents, or 1.4%, to $17.50.
ON BAYSTREET
The TSX Venture Exchange lost 1.17 points, recovering from its severe lows of the day, to 594.07.
All but two of the 12 TSX subgroups lost ground, with financials poorer by 2.6%, information technology sagging 1.5%, and industrials weaker by 1.3%.
Health-care dipped 0.8%, while real-estate fell 0.4%.
ON WALLSTREET
The Dow Jones Industrial Average tumbled for a second day as President Donald Trump’s tariffs left investors fearful of potential shockwaves for the economy.
The blue chips withered 670.25 points, or 1.6%, to close Tuesday at 42,520.99, building on Monday’s plunge of nearly 650 points.
The S&P 500 index declined 71.57 points, or 1.2%, to 5,778.16.
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 65.03 points to 18,285.16, 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 4% and Ford was lower by 3%, 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%. Target shed 2.5% with its CEO saying prices for some produce would be going higher in the next few days because of the tariffs.
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
With Tuesday’s losses, the S&P 500 now trades below where it finished on Election Day in November, when Trump won his second term in 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.
Prices for the 10-year Treasury edged lower, lifting yields 4.20% from Monday’s 4.16%. Treasury prices and yields move in opposite directions.
Oil prices slid five cents to $68.32 U.S. a barrel.
Prices for gold strengthened $24.80 an ounce to $2,920.40 U.S.
