FX.co ★ TSX Retreats Amid Trade Tensions and Economic Headwinds

The S&P/TSX Composite Index experienced a 1.6% decline, closing at 24,759 on Friday, erasing the week's prior gains and posting an overall weekly loss of 0.8%. This downturn was driven by investor caution amidst the prospect of new US tariffs, slow GDP growth, and ongoing inflation concerns. The recent announcement by President Trump regarding a 25% tariff on foreign-manufactured cars has heightened fears of escalating trade disputes, further aggravated by Prime Minister Carney's warning of possible countermeasures. In Canada, preliminary data showing GDP stagnation in February has fueled fears of a wider economic slowdown. In the United States, long-term inflation expectations have reached their highest point since 1993, while the core Personal Consumption Expenditures (PCE) index rose by 2.8% in February, putting pressure on the Federal Reserve to maintain higher interest rates. Among the nine major sectors, eight saw declines, with Shopify leading the losses with a 5.7% drop, followed by Brookfield and Canadian Pacific Railway, which decreased by 4.2% and 3.1%, respectively.