FX.co ★ TSX Futures Slip on US-Canada Trade War

Futures tracking Canada’s stock market edged lower on Tuesday as Canada’s retaliatory tariffs on U.S. goods took effect. The counter-tariffs apply to about $20 billion worth of U.S. products, with duties ranging from 15% to 50% on items such as steel, furniture, clothing, and electronics. The U.S. tariffs introduced last month targeted sectors including wine, furniture, dairy products, cement, clothing, fishing rods, and hockey equipment, covering roughly $20 billion, or 5%, of Canadian exports to the United States.

Adding to market pressure, U.S. President Trump said on Monday that Bombardier would not be permitted to sell its aircraft in the United States unless it began manufacturing there. Sentiment on the TSX was further weighed down by rising crude prices after Saudi Arabia reported attacks that halted operations at several energy facilities. Concerns over prolonged supply disruptions and the potential for energy-driven inflation strengthened expectations of interest rate hikes in both Canada and the United States, putting additional pressure on rate-sensitive stocks, including major banks.