Canada’s main stock index rallied on Wednesday following China’s announcement of additional tariffs on US goods. This move was in retaliation to President Trump’s reciprocal tariffs, heightening concerns about a global economic downturn.
US tariffs on imports from various countries also came into effect. On Tuesday, Canada reaffirmed its plans to implement 25 per cent retaliatory tariffs on US-manufactured vehicles. This includes vehicles that do not comply with the United States-Mexico-Canada Agreement (USMCA), as well as the non-Canadian and non-Mexican content of USMCA-compliant fully assembled vehicles imported from the US.
US markets experienced their best surge in 16 years after China’s retaliatory tariffs on American goods, further escalating global trade tensions. China stated it would impose an 84 per cent levy on US goods starting Thursday, following the US tariffs of 104 per cent on Chinese imports that took effect shortly after midnight.
Since last Thursday, the Dow has lost more than 490 points, while the S&P 500 has seen a 32 point decline. The NASDAQ has risen 294 points during this period.
| TSX | 23,727.03 | +1,220.03 |  |
| TSXV | 598.66 | +36.90 | |
| CSE | 108.33 | +2.25 | |
| DJIA | 40,608.45 | +2,962.86 | |
| NASDAQ | 17,124.97 | +1,857.06 | |
| S&P 500 | 5,456.90 | +474.13 | |
The Canadian dollar traded for 70.87 cents US compared to 70.20 cents US on Tuesday.
US crude futures traded US$2.91 higher at US$62.49 a barrel, and the Brent contract rose US$2.76 to US$66.69 a barrel.
The price of gold was up US$113.18 to US$3,094.82.
In world markets, the Nikkei was down 1,298.55 points to ¥31,714.03, the Hang Seng was up 136.81 points to HK$20,264.49, the FTSE down 231.05 points to ₤7,679.48, and the DAX was down 609.38 points to €19,670.88.
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(Top image generated with AI.)
