Canadian Stocks Pare Biggest Intraday Decline Since August

  • February 3, 2025

(Bloomberg) -- Canada’s benchmark stock index pared its decline on Monday, after tumbling the most since August at one point after US President Donald Trump said over the weekend that he would impose tariffs on Canada, Mexico and China starting Tuesday.

The S&P/TSX Composite index fell by as much as 3% right after the markets opened in Toronto on Monday.

The index then pared some of those losses as news that US tariffs on Mexico would be delayed by one month fueled speculation that levies on Canada would be paused as well. Canada’s benchmark index ended the day 1.1% lower at 25,241.76.

After markets closed, Canadian Prime Minister Justin Trudeau announced that new US tariffs would be paused 30 days after a call with Trump. The Canadian dollar strengthened on the news.

Colin Cieszynski, chief market strategist at SIA Wealth Management, said this latest development should help some deeply impacted Canadian sectors to stage a partial recovery, including shares of auto and banking stocks, which had been particularly hard hit on Monday.

“We could see some of that bounce back,” Cieszynski said by phone, adding that the stocks that were the hardest-hit on Monday could see the strongest recoveries later this week.

A delay in tariffs comes as a relief to many market participants, after worries grew that levies on Canadian products could badly damage the country’s economy.

--With assistance from Melissa Shin.