Trump tariffs crush Canada stocks S&P/TSX but multiple sectors, shares gain. Check here

Toronto's benchmark index fell on Friday as U.S. President Donald Trump ramped up his tariff assault on Canada, while investors assessed better-than-expected domestic employment data for June. The S&P/TSX composite index dipped 0.3 per cent at 26,999.13 points and was on track to snap its two-week winning streak.

Canada Stocks

Industrial stocks fell 0.6 per cent, while financials declined 0.8 per cent. Conversely, energy stocks added 0.6 per cent, tracking a rise in oil prices. Mining shares were up 0.2 per cent, as gold prices rose.


Gold miners Aya Gold & Silver rose 4.5 per cent and Equinox Gold Corp advanced 2.3 per cent. Copper prices slipped, and with it, dragged miners Hudbay Minerals and Capstone Copper down 3 per cent and 2.5 per cent respectively.

On Thursday, Hudbay said it had temporarily suspended its Snow Lake operations due to a wildfire in Northern Manitoba. Meanwhile, Aritzia added 1.6 per cent after the fashion retailer's first-quarter results beat expectations.

MTY Food Group shares dropped 8.6 per cent after the company's second-quarter adjusted earnings per share missed analyst estimates.

Donald Trump Tariffs on Canada

Trump late on Thursday issued a letter implementing a 35 per cent tariff rate on imports from Canada from August 1, adding that the rate would go up if Canada retaliated. The new tariff is an increase from the current 25 per cent rate that Trump had assigned to Canada.

"Clearly, the U.S. is pushing for more concessions. They're playing a little bit of hardball here, so not good for Canada and the TSX," said Ian Chong, portfolio manager at First Avenue Investment Counsel.

Prime Minister Mark Carney said his government will defend Canadian workers and businesses in their negotiations with the U.S.

An exclusion for goods covered by the U.S.–Mexico–Canada Agreement was expected to stay in place, while 10% tariffs on energy and fertilizer were not set to change, though Trump had not made a final decision, an administration official said.

Meanwhile, domestic jobs data showed that Canada's unemployment rate dropped in June with the first net increase in jobs since January. The data is widely expected to tilt the Bank of Canada towards another hold on its policy rate.

FAQs

Q1. What is benchmark of Canada stock market?
A1. Benchmark of Canada stock market is S&P/TSX composite index.

Q2. What are current tariffs on Canada?
A2. President Donald Trump late on Thursday issued a letter implementing a 35 per cent tariff rate on imports from Canada from August 1, adding that the rate would go up if Canada retaliated. The new tariff is an increase from the current 25 per cent rate that Trump had assigned to Canada.