TORONTO — Canada's main stock index was down more than 500 points in late-morning trading, while U.S. stocks also continued to post big losses after U.S. President Donald Trump's tariff announcement last week.
The S&P/TSX composite index was down 550.75 points at 22,642.72.
In New York, the Dow Jones industrial average was down 885.99 points at 37,428.87. The S&P 500 index was down 88.55 points at 4,985.53, while the Nasdaq composite was down 302.85 points at 15,284.94.
Monday's losses come on the heels of big declines on Thursday and Friday after Trump announced a sweeping round of global tariffs Wednesday evening, adding fuel to concerns that a recession is on the way.
Markets made a brief swing higher earlier Monday, with the S&P 500 rising 3.4 per cent before giving up the gains. A White House account on X said a rumour that Trump was considering a 90-day pause on the tariffs was "fake news," taking the air out of the short-lived bounce.
Trump has referred to the market losses that resulted from his tariffs as a necessary "medicine," part of a longer-term plan to repatriate production and factories to the U.S.
But market watchers and economists warn the tariffs will be inflationary and weigh on economic growth.
“The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession,” wrote JPMorgan CEO Jamie Dimon in a letter to shareholders Monday.
Trump is now threatening more tariffs on China after the country announced it would retaliate to last week's round of duties.
Canada was spared from the latest round of tariffs but already faces levies on a number of exports to the U.S. including steel and aluminum. It has enacted retaliatory tariffs on a swath of American goods.
The Canadian dollar traded for 70.21 cents US compared with 70.34 cents US on Friday.
The May crude oil contract was down US$1.62 at US$60.37 per barrel and the May natural gas contract was down six cents US at US$3.78 per mmBTU.
The June gold contract was down US$34.50 at US$3,000.90 an ounce and the May copper contract was down 17 cents US at US$4.23 a pound.
-- With files from The Associated Press.
This report by The Canadian Press was first published April 7, 2025.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
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