(Reuters) – Futures tied to Canada’s main stock index tumbled on Thursday, as U.S. President Donald Trump’s reciprocal tariffs against its trading partners amplified fears of global recession.
The futures on the S&P/TSX index were down 3% at 6:40 a.m. ET (1040 GMT).
Trump’s new tariffs announced on Wednesday set a baseline of 10% for all imports and higher duties on some of the biggest trading partners of U.S.
But Canada avoided the new levies as goods that comply with the USMCA trade agreement between the U.S., Mexico, and Canada will largely remain exempt, excluding autos, steel and aluminum which fall under separate tariff policies.
Separately, Greater Toronto Area home sales fell in March, data released on Thursday showed, adding to steep declines the month before. Home prices dropped for a third straight month as trade uncertainty crimped activity.
In commodities, oil prices fell after the new tariffs, as investors worried they will curtail economic growth and limit fuel demand.
Gold prices steadied after surging to yet another all-time high in the previous session, as traders locked in profits following a rush to safe-haven assets.
Copper prices also fell amid concerns that the tariffs would weaken global demand for metals.
Canada’s main stock index rose to its highest closing level in over a week on Wednesday, helped by gains for industrial and technology shares.
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(Reporting by Sanchayaita Roy in Bengaluru; Editing by Sahal Muhammed)
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