FX.co ★ TSX Poised for Sharp Weekly Losses After US Tariffs

The S&P/TSX Composite Index experienced a decline of approximately 1.2% on Friday, dropping below the 27,000 threshold. This contributed to weekly losses of around 2%. The downturn was largely influenced by President Trump’s executive order, which increased U.S. tariffs on a range of Canadian exports to 35%, including sectors such as steel, forestry, and auto parts that are not protected under the USMCA agreement. This unexpected move has unsettled industries dependent on exports and raised concerns over profit margins in various corporations. Shopify, a major player in the e-commerce sector, was notably affected, with its shares falling more than 4% due to a bleak demand outlook for its services, exacerbated by Amazon’s recent underwhelming earnings report. The financial sector also felt the impact, particularly Brookfield, which saw its shares decline by about 3.5%, leading the sector's losses. The market downturn worsened after the release of a disappointing U.S. nonfarm payroll report for July, which revealed the addition of only 73,000 jobs, significantly below the projected 110,000. Additionally, sharp downward revisions to May and June employment figures resulted in a combined reduction of 258,000 jobs, while the unemployment rate increased to 4.2%.