Canada’s top stock index declined on Friday as investors reacted to US President Donald Trump’s newly announced tariff measures, which target Canada and numerous other countries.
Market sentiment was further dampened by the updated tariffs, which took effect at the August 1st deadline. These duties now range from 10 per cent to 41 per cent. Goods also rerouted through third countries to bypass the tariffs will be hit with an extra 40 per cent levy, according to the White House.
The biggest shock to markets was the increase in tariffs on Canadian imports—rising to 35 per cent from the previous 25 per cent—despite Canada being one of the US’s largest trading partners.
US stocks also came under pressure as August trading began, with investors grappling with signs of economic slowdown and the implications of Trump’s revised tariff policy.
Tech stocks were particularly hard hit. Amazon (NASDAQ:AMZN) shares plunged more than 8 per cent after the company issued weaker-than-expected operating income guidance for the current quarter. Apple (NASDAQ:AAPL) also saw its stock fall 2.5 per cent, despite reporting better-than-expected earnings and revenue. The July jobs report showed non-farm payrolls expanded by just 73,000 in July.
| TSX | 27,020.43 | -239.35 |  |
| TSXV | 761.49 | -9.39 | |
| CSE | 134.37 | +3.31 |  |
| DJIA | 43,588.58 | -542.40 | |
| NASDAQ | 20,650.13 | -472.32 | |
| S&P 500 | 6,238.01 | -101.38 | |
The Canadian dollar traded for 72.48 cents US compared to 72.19 cents US on Thursday.
US crude futures traded US$1.98 lower at US$67.28 a barrel, and the Brent contract lost US$2.16 to US$69.54 a barrel.
The price of gold was up US$62.01 to US$3,359.93.
In world markets, the Nikkei was down 270.22 points to ¥40,799.60, the Hang Seng was down 265.52 points to HK$24,507.81, the FTSE was down 64.23 points to ₤9,068.58, and the DAX was down 639.50 points to €23,425.97.
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