The S&P/TSX Composite Index fell more than 0.5% on Tuesday, slipping below 36,500, after Canada’s retaliatory tariffs on US goods took effect. The countermeasures apply to roughly $20 billion worth of US exports, with duties ranging from 15% to 50% on products such as steel, furniture, clothing, and electronics.
The move follows US tariffs introduced last month that also covered about $20 billion—around 5%—of Canadian exports to the United States, targeting sectors including wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment.
In corporate news, US President Trump said Monday that Bombardier (-3%) would not be allowed to sell its aircraft in the US unless it began manufacturing there. Saputo slipped about 0.5%, while Dorel declined by more than 0.5%.
Energy stocks also pressured the TSX as crude prices rose after Saudi Arabia reported attacks that forced the shutdown of several energy facilities. Heightened concerns over supply disruptions and energy-driven inflation boosted expectations for interest rate hikes in both Canada and the US, weighing on major bank shares.
