Stock Market in Canada Drops due to Extended Imposition of Tariff Uncertainties
In the ongoing U.S.-Canada bilateral trade negotiations, the latest updates were reported on July 29, 2025[1]. Although the specific details of these talks remain undisclosed, they are part of a broader U.S. initiative involving multiple trade partners to address reciprocal tariffs and trade issues[1].
The ongoing negotiations have had a noticeable impact on the Canadian stock market. On Wednesday, the S&P/TSX Composite Index closed at 27,369.96, marking a decrease of 169.92 or 0.62%[2]. The index reached an intraday high of 27,581.23 within an hour but subsequently fell into negative territory[3].
The major sectors that experienced losses in today's trading include Materials (2.09%), Healthcare (2.56%), Industrials, Consumer Discretionary, Communication Services, Consumer Staples, Energy, IT, and Financials, ranging from 0.20% to 0.64%. However, Utilities (0.16%) and Real Estate (0.13%) were the only major sectors that managed to gain[4].
Prominent gainers in the Canadian stock market include Transalta Corp (1.86%), Canadian Utilities Ltd (1.23%), Parex Resources (6.34%), Toromont Ind (4.72%), and Tamarack Valley Energy (2.63%)[5]. On the other hand, Bausch Health Companies Inc (5.95%), Hudbay Minerals Inc (6.55%), G Mining Ventures Corp (5.47%), Orla Mining Ltd (5.24%), and Aya Gold and Silver Inc (5.16%) were the notable losers[6].
The U.S. Federal Reserve (Fed) kept interest rates unchanged today, with two governors voting against the decision, suggesting signs of internal disagreement[7]. Meanwhile, the Bank of Canada maintained its target for the overnight rate at 2.75% on Wednesday[8]. The Bank has signaled that it is ready to slash rates again should conditions warrant.
The U.S. President Donald Trump hinted that the U.S. may not have a lot of luck with Canada on trade talks and added that Canada may have tariffs instead of negotiations[9]. PM Mark Carney reassured the nation that he would sign a deal with the U.S. without affecting the domestic business interests, although it may require agreeing to some of the tariff imposition[10].
As of late July 2025, steel and aluminium exports from Canada are subject to a 50% tariff. Soon, copper exports may also be subject to a 50% levy[11]. The potential impact of these tariffs on the Canadian economy and stock market remains to be seen.
[1] Source: [Link to the update] [2] Source: [Link to the stock market report] [3] Source: [Link to the stock market report] [4] Source: [Link to the stock market report] [5] Source: [Link to the stock market report] [6] Source: [Link to the stock market report] [7] Source: [Link to the Fed's announcement] [8] Source: [Link to the Bank of Canada's announcement] [9] Source: [Link to the U.S. President's statement] [10] Source: [Link to PM Carney's statement] [11] Source: [Link to the tariff announcement]
The potential impact of the ongoing U.S.-Canada trade negotiations, particularly the proposed tariffs on steel, aluminium, and soon, copper, could significantly influence the Canadian stock-market investing landscape. These negotiations and tariffs might have a profound effect on certain business sectors, such as Materials or Energy, due to their direct exposure or dependence on these commodities.
