Canadian Stock Market Rebounds Amidst Tariffs Delay
Canada's S&P/TSX Composite index reversed its early losses on Monday after initial plummeting due to President Trump's announcement of tariffs on Canada, Mexico, and China.
The index initially fell 3% at market open but recovered some losses as news emerged that US tariffs on Mexico would be delayed by one month, sparking speculation of a similar pause for Canada. At the close, the index settled 1.1% lower at 25,241.76.
Prime Minister Justin Trudeau's announcement of a 30-day pause on new US tariffs following a conversation with Trump boosted the Canadian dollar.
Analysts anticipate that the sector most affected, including auto and banking stocks, may rally partially.
The delay in tariffs alleviates concerns over potential economic repercussions from Canadian product levies.