S&P/TSX Composite Index falls below 36,500 as Canada tariffs take effect

  • Canada imposed retaliatory tariffs on US goods as the S&P/TSX Composite Index declined.
  • Counter-tariffs cover $20 billion of US goods, with duties ranging from 15% to 50%.
  • Bombardier fell 3% after US President Trump linked US plane sales to domestic manufacturing.

The S&P/TSX Composite Index fell more than 0.5% to trade below 36,500 on Tuesday as Canada’s retaliatory tariffs on US goods took effect. The duties cover $20 billion of US products, including steel, furniture, clothing and electronics, with rates ranging from 15% to 50%. The US tariffs introduced last month targeted $20 billion, or 5%, of Canadian exports, including wine, furniture, dairy products, cement, clothing, fishing rods and hockey equipment. Bombardier fell 3% after US President Trump said on Monday that the company would not be allowed to sell its planes in the US unless it began manufacturing there. Saputo declined about 0.5% and Dorel lost more than 0.5%. Crude prices rose after Saudi Arabia reported attacks that halted operations at several energy facilities, increasing concerns about supply disruptions and energy-driven inflation. Those concerns lifted expectations for interest-rate increases in Canada and the US, weighing on major banks.

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