24.08.202613:57:44UTC+00TSX Falls as US-Canada Trade Talks Collapse

The S&P/TSX Composite Index slipped on Monday, hovering around the 36,500 level, after trade negotiations between the United States and Canada broke down. Canadian Prime Minister Carney pledged to mirror new U.S. trade measures following Washington’s decision on Saturday to impose 50% tariffs on a range of Canadian exports. The latest duties target furniture, plastics, plywood and electrical equipment, and come on top of existing tariffs on steel, lumber and automobiles.

Industrial and manufacturing names were under pressure, with Magna International falling nearly 4%, while BRP and Linamar each declined close to 1.5%. Financials also traded mostly lower amid uncertainty over imminent U.S. sanctions on Iran. The anticipated measures could further constrain Iranian oil exports, drive crude prices higher and re-ignite inflationary pressures. Major banks including RBC and TD Bank lost nearly 1% ahead of their earnings releases later this week.

Losses on the broader index were partly offset by strength in mining stocks as gold prices advanced. Agnico Eagle, Barrick and Wheaton Precious Metals (WPM) each gained about 2%.