Stocks Dip as Canada Hit with Heavy Tariffs

Futures linked to Canada's main stock index fell on Friday as U.S. President Donald Trump ramped up his tariff assault on this country.

The TSX Composite Index gained 109.98 points to close Thursday at 27,082.30

September futures tumbled 0.6% Friday.

The Canadian dollar was down 0.22 cents to 73.01 cents U.S.

Trump late on Thursday issued a letter implementing a 35% tariff rate on all imports from Canada, set to go into effect from August 1, adding that the rate would go up if Canada retaliated.

He also said the European Union could receive a letter on tariff rates by Friday and floated a blanket 15% or 20% tariff rate on other countries, a step up from the current 10% baseline rate.

The 35% tariff is an increase from the current 25% rate that Trump had assigned to Canada and is a blow to Prime Minister Mark Carney, who was seeking to come to a trade agreement with Washington.

Carney said his government will defend Canadian workers and businesses in their negotiations with the U.S.

An exclusion for goods covered by the U.S.–Mexico–Canada Agreement was expected to stay in place, while 10% tariffs on energy and fertilizer were not set to change, though Trump had not made a final decision.

On the macroeconomic scene, Statistics Canada says the economy created 83,000 jobs in June, lowering the unemployment rate 0.1 percentage points to 6.9%.

Moreover, the agency says building permits rose in May by $1.4 billion (+12.0%) to reach $13.1 billion.

ON BAYSTREET

The TSX Venture Exchange gained 15.91 points, or 2.1%, Thursday to 773.44

ON WALLSTREET

Stock futures dropped Friday, a day after the S&P 500 posted a new record high, after President Donald Trump announced a 35% tariff on Canada and threatened higher tariffs across the board.

Futures for the Dow Jones Industrials dropped 278 points, or 0.6%, to 44,630.

Futures for the S&P 500 index fell 36.75 points, or 0.6%, to 6,287.50.

Futures for the NASDAQ sank 120.75 points, or 0.5%, to 22,892.50.

Trump cited fentanyl as a reason for higher Canada duties, adding that they would go higher if the country retaliates. “If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,” Trump said in a letter posted on Truth Social.

Trump then told NBC News he was planning blanket tariffs of 15% to 20% on remaining countries, higher than the current 10% standard that investors had grown comfortable with.

Nvidia was pulling back in premarket trading Friday, along with most other tech shares. It was a broad selloff Friday with most stocks in the S&P 500 in the red so far in early trading. JPMorgan led banks lower Friday, down about 1% in pre-market trading.

In Japan, the Nikkei 225 index stepped back 0.2% Friday, while in Hong Kong, the Hang Seng moved ahead 0.5%

Oil prices were boosted 77 cents to $67.34 U.S. a barrel.

Gold prices strengthened $32.50 to $3,358.20 U.S. an ounce.