FX.co ★ TSX Falls on Tariff Uncertainty

The S&P/TSX Composite Index experienced a decrease of approximately 0.7%, dropping below the 24,400 mark on Monday. This decline occurred as investors grew wary of the potential global economic impact stemming from U.S. tariffs, which pose a threat to trade flows and could amplify economic uncertainty. This response followed President Trump's announcement that reciprocal tariffs would be implemented universally, rather than being restricted to a specific set of countries. Although Canada benefits from trade protections through a 2018 agreement with the U.S. and Mexico—including a 60-day grace period and annual duty-free quotas for auto imports—there is market unease over whether these safeguards will be upheld. This uncertainty has prompted investors to reassess their market positions in anticipation of a potentially broader and more disruptive tariff regime. The technology sector was hit hardest, with Shopify plunging over 5%, Celestica dropping more than 6%, and both Constellation Software and CGI falling over 1%. The financial sector faced similar struggles, with Brookfield, BMO, and Scotiabank each losing over 1%.