Futures for Canada’s main stock index fell on Tuesday, as U.S. President Donald Trump’s new tariffs on top three trading partners of the world’s biggest economy took effect, triggering a global trade war.
The TSX Composite Index weakened 391.88 points, or 1.5%, to close Monday at 25,001.57. This marked its lowest close since January 16 and its most significant decline since December 18.
March futures were down 0.5% Tuesday.
The Canadian dollar hiked 0.36 cents to 69.36 cents U.S. early Tuesday.
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.
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.
ON BAYSTREET
The TSX Venture Exchange lost 19.4 points, or 3.2%, Monday, to 595.24.
ON WALLSTREET
U.S. stock futures were lower Tuesday after a big selloff on Wall Street, as President Donald Trump’s tariffs on Canada, Mexico and China took effect — leading to retaliation from some of those countries.
Futures for the Dow Jones Industrials settled 67 points, or 0.2%, to 43,187
Futures for the S&P 500 index faded 15.02 points, or 0.3%, to 5,845.75
Futures for the tech-heavy NASDAQ slid 53 points, or 0.3%, to 20,415.25.
The benchmarks dropped after Trump confirmed that the U.S.’ 25% duties on Canada and Mexico would go into effect. He added that there was “no room left” for the two nations to negotiate these new import tariffs. Trump also slapped an additional 10% tariff on Chinese goods. These levies took effect at midnight
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.
Shares of GM and Ford were lower in premarket trading, following losses of 11% and 5% respectively this year on fears over tariffs.
Monday’s selloff dragged the S&P 500 into the red for 2025.
In Japan, the Nikkei 225 let go of 1.2%, while in Hong Kong, the Hang Seng fell 0.3%.
Oil prices slipped 94 cents to $67.43 U.S. a barrel.
Gold prices hiked $29.80 to $2,930.90 U.S. an ounce.
