(Reuters) – Futures tied to Canada’s main stock index climbed on Wednesday following a challenging two-day decline, amid news of U.S. President Donald Trump’s administration contemplating easing the stringent tariffs on Canadian and Mexican imports.
By 6:32 a.m. ET (1132 GMT), futures for March on the S&P/TSX index had risen 0.43%.
The Toronto Stock Exchange’s S&P/TSX composite index tumbled 1.7% by the close on Tuesday, settling at 24,572. This marked its second consecutive day of significant losses and its steepest decline since December 18.
U.S. Commerce Secretary Howard Lutnick said on Tuesday the government was considering easing the 25% tariffs on Canadian and Mexican imports to products that comply with the trade pact negotiated with the two nations during Trump’s first term.
Two sources privy to the discussions between the Trump administration and officials from Canada and Mexico said the negotiations are focused on exemptions for companies that adhere to the rules of origin in the 2020 U.S.-Mexico-Canada Agreement.
These discussions primarily, though not exclusively, target the automotive industry.
Trump escalated a global trade war on Tuesday after he imposed the tariffs on top U.S. trade partners, citing ineffective border controls.
Canada sought consultations with the U.S. at the World Trade Organization, challenging what it perceives as ‘unjustified tariffs.’
In the realm of commodities, gold prices edged higher, buoyed by a softer U.S. dollar and political uncertainties stemming from the recent tariff developments.
Conversely, oil prices continued their downward trajectory for a third consecutive session as investors expressed concerns over OPEC+’s plans to increase output in April.
(Reporting by Pranav Kashyap in Bangalore; Editing by Shreya Biswas)
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